Housing ladder P3Do you dream of owning your own home but worry that you’ll never save enough to get a mortgage? Or maybe you think the idea too far-fetched. With shared ownership, it could be possible.

Shared ownership is a low-cost way to take your first step on the property ladder.

It works by letting you buy a share in a property while paying a subsidised rent to us on the share we hold. Over time you can gradually buy out our share, so ultimately you could own it outright.

The size of your first share in the property will depend on what you can afford to pay for with savings and a mortgage. You could buy as little as a 30% share to start with, or as much as 75%.

You will have to budget for monthly repayments on your mortgage, for rental payments to us, and for normal household running expenses and repairs.

Most shared ownership properties have a 125-year lease which gives you broadly similar rights and responsibilities to that of someone who owns their home outright.

Why buy a shared ownership home?

  • A home in a prime location with good transport links
  • A much smaller deposit than you would need if taking out a full mortgage
  • White goods like the fridge and washing machine are part of the deal, along with excellent built-in fittings
  • Instead of spending money on rent, you part-own a home and can save for a bigger share.

Who can buy using shared ownership?

Your income

  • In london your total household income must be under £66,000 a year for a one or two bedroom home or no more than £80,000 for a family-sized home (three or more bedrooms)
  • Outside london, your total household income must be £60,000 or less

New household

  • You should either be a first time buyer or a newly formed household, for example starting again after a relationship break-up

Your finances

  • You must be able to buy, at least, the minimum share on offer
  • You must pass a financial assessment.
  • You must have a good credit history
  • You will need £4,000 to cover the cost of buying. This sum will include solicitors’ fees, mortgage arrangement fees, moving costs, etc
  • You will need extra funds to put down a deposit. this will reflect the cost of the share you buy, your mortgage lender’s requirements and your credit rating.
  • You must be employed, self-employed or otherwise able to show you can afford to pay for home ownership in the long term. Student loans, bursaries and similar are not accepted. Housing benefit will not cover mortgage payments.

How do we choose who gets priority?

We give priority to anyone giving up a housing association or council tenancy and people in the armed forces.

Other priorities vary by borough, set by the local council or written into planning conditions. typically, people living or working in the borough will get priority.

Family size and location and your current housing situation are also important factors as is the outcome of a financial interview and identity checks.

Freelancer Lesley, now 60, was renting in Highbury and house-hunting locally but knew she couldn’t afford to buy on the open market. She was delighted to find that she could afford to buy through our shared ownership scheme.

Lesley has taken a 35% share, valued at £98,000, of a one-bedroom flat in a popular part of Islington. the flat’s full market value is £280,000.

Lesley says: ‘Because of my age and working freelance, I was certain I wouldn’t qualify. The sales team recommended a broker and solicitor who were patient and helpful.

‘It took six months but the team was really supportive in getting my application approved, which could have been very difficult on my own.

‘Shared ownership has given me freedom to enjoy life without a large mortgage payment each month. I feel so lucky living in the area I love but at an affordable price.’

How to apply for shared ownership

At Family Mosaic, we have been able to help people in very different situations buy through shared ownership – young or old, in full-time work or freelancing, living on their own or moving in with family. All had just one thing in common – they couldn’t afford to buy on the open market.

Step 1 Find a property or housing development that you like using the search options on our sales website www.familymosaicsales.co.uk

Step 2 During office hours, call us on 020 7089 1315 or contact us online.

If you are interested in properties in Essex, you must first register your details with the local Homebuy agent.

To find out if you qualify for shared ownership, call us on 020 7089 1315 or visit www.familymosaicsales.co.uk where you can download your guide to shared ownership for free.