Now You Can Own A Home With Shared Ownership Properties
Starting out on our own, we often dream of living in a posh apartment and driving a sleek car. We cannot wait to buy the latest gadgets and designer label clothing. However, after quite some time we realise how hard it is to earn money, let alone to purchase those things we have been dreaming of having. After a couple of years, we decide to settle down, get married, and start a family, and our dream becomes even more difficult to reach.
Buying a house is a good investment; however, it is an expensive investment, too. Today, the average house price is 219,832 pounds, and with the average annual household income being 32,779 pounds, how many people can afford to buy houses? Not many, obviously.
Well, no need to fret anymore because the government, with the cooperation of home builders and housing associations, has heard you. Since 2005, the UK has allowed individuals and families to avail of shared ownership properties, which means they can own part of a real estate property together with another entity, such as a housing association. This makes purchasing of real estate properties accessible to everyone and not just to middle and upper-class people.
How does shared ownership work? The process is simple and very straightforward. Understand that with shared ownership, you purchase a percentage of the property, and the balance, you will rent it out from either the housing association, developer, or the previous owner. This means you take the house as your own, you can live in it, but the difference is that the ownership will still not be under your name until such time you pay off the balance, which is set for a certain period of time. However, later on, if you have extra funds, you can choose to pay the remaining balance in full even before the maturity date, and you get full ownership of the property.
As soon as you have decided on the property you want to purchase, you will be required to send a letter of intent to the owner (housing association, developer, or previous owner) which should explain well why you would need to purchase through property through shared ownership. Indicate also in the letter your capability to pay as well as your household income. From there, the association will assess your application and will advise you on whether it has been approved or not.
One of the benefits of shared ownership is that individuals and families can easily afford it. These properties are very much similar to regular real estate investments in that they can either be newly built or well-maintained properties. As an added benefit, some areas in the UK do not even charge anything on stamp duties for the purchase of these shared ownership properties.
Owning a home does not have to remain a dream - you can make it come true with wonderful opportunities like shared ownership. Now you and your loved ones can finally live in a real home; no more paying exorbitant monthly rent and living in tight spaces in a bad neighbourhood.
About the Author:
Looking for a new home? Find affordable housing in the UK with SmartShare, the shared ownership and rent to buy specialists.
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