London Home Show Sponsors: SO Resi
Is Shared Ownership the answer to your homeownership dreams?
The hope of owning your first home can seem like a distant dream for many first time buyers – especially given the staggering property prices, with London’s average home now costing £521,146. However, rising house prices are not the only obstacle for first time buyers. The pandemic has resulted in increased mortgage rates, a rise in the average age of a first time buyer and more recently a cost of living crisis. However, don’t despair, the property sector’s unsung hero Shared Ownership may be the answer to many first time buyers’ worries.
What is Shared Ownership?
Shared Ownership has been kicking down barriers to homeownership since the ‘70s, but now it’s coming into its own and has huge potential to grow over the next decade as buyers look for more accessible routes to owning their own home.
The government-backed scheme allows potential buyers to purchase a percentage share (typically between 25-75%) of the value of a home. The buyer will then pay a minimum 5% deposit based on their initial share and take out a mortgage to cover the rest.
Additionally, buyers will pay a monthly payment to SO Resi on the remaining share of the home that the consumer doesn’t own and a service charge fee – allowing residents to own a piece of capital at a fraction of the price. Buyers can also purchase additional shares of the home, through a process called staircasing, until they own 100% of the property.
This provides first time buyers with a more cost-effective way of stepping onto the property ladder but more crucially it reduces the upfront costs for buyers through a smaller deposit than homes in the open market, many of which, first time buyers simply can’t afford.
Who is eligible?
For those looking to buy a Shared Ownership home, the general eligibility criteria is as follows:
- You must be at least 18 years old.
- In London, your annual household oncome must be less than £90,000 (£80,000 outside London).
- You cannot own another home. If you already own another property (either in the UK or abroad), you must be in the process of selling it.
For first time buyers looking to buy an affordable home in one of London’s property hotspots, take a look at what we have to offer at SO Resi.
Ealing
Located in West London, Ealing – also known as ‘Queen of the Suburbs’ – has been long under the radar for working professionals and families alike.
For buyers who want to move away from the hustle and bustle of the city, Ealing offers excellent transportation, schools, shopping malls and entertainment value, making it the perfect place to call home.
There are several one and two bedroom, ready to move into, Shared Ownership apartments available at SO Resi Ealing, with prices starting from £99,988 for a 25% share in a one bedroom apartment (full market value: £399,950). Potential buyers could get onto the property ladder for a low 5% deposit of just £4,999.
Greenford
Perfectly placed in the borough of Ealing, Greenford encapsulates a vibrant suburban town that effortlessly combines its historic roots with modern redevelopment. Due to its versatile living options, Greenford is perfect for young working professionals as well as families with spacious green areas, excellent schools, and community centres all close by.
SO Resi Greenford homes start at £82,500 for a 25% share in a one bedroom apartment (full market value: £330,000) with a 5% deposit of £4,125.
Ready to take a step onto the property ladder? Join us on Saturday 2nd April at the London Home Show to receive free financial and legal advice and informative educational sessions about Shared Ownership.
To learn more about Shared Ownership with SO Resi call us on 0208 607 0550 or visit our website.
The capital’s no.1 first time buyer event will return to the QEII Centre in Westminster on Saturday 2nd April, 2022. Register for your FREE ticket to attend Share to Buy’s fifteenth exhibition where you can learn about Shared Ownership and Help to Buy, receive financial and legal advice from expert mortgage brokers and solicitors, and attend first time buyer workshops and seminars.