London Home Show Countdown: Clarion Housing

Shared Ownership Simplified

Looking into buying your own property can feel like a daunting prospect. There’s so much advice and information out there for first time buyers. Furthermore, the Shared Ownership scheme can feel like an additional puzzle to solve. At Clarion Housing we are committed to supporting and guiding buyers onto the property ladder, and that’s what this scheme is all about!

Here we offer a simple, jargon-free explanation to Shared Ownership and dispel some common myths about how the scheme works, so you will be armed with all the information you need and reassured that your home ownership ambition is achievable.

The basics explained

• Simply speaking, Shared Ownership is a part-own, part-rent scheme.
• This route allows first time buyers to get onto the property ladder with a smaller deposit than the regular mortgage system.
• You choose to buy a percentage of the home, anywhere between 25%-75% of the full market value. Buyers take out a mortgage for this portion and put down a deposit according to that figure.
• The remaining percentage is then accounted for through discounted rent to a housing association like us.
• These combined monthly payments work out cheaper than buying the property outright or renting it privately.
• There are often incentives that can really support your home buying journey. For example, with Clarion Housing you can currently reserve your dream home for just £99, ahead of the minimum 5% deposit.
• Additionally, most of our new homes are available to buy off-plan. This gives you the opportunity and increased motivation to save more before you move in.

Getting started

• You can buy through Shared Ownership if your total household income is £80,000 a year or less (£90,000 in London).
• At some of our developments, priority is given to buyers who work or live locally.
• The minimum deposit is usually 5% of the share you are buying.
• Clarion Housing offers Shared Ownership homes throughout the country, not just in London.

Squashing common myths

• A Shared Ownership home does not mean you share your home with someone else.
• Shared Ownership is open to any occupation, not just key workers.
• Shared Ownership is open to all types of buyers, not just first time buyers.
• Shared Ownership homes come in all different shapes and sizes; from bungalows to family houses and studios to penthouses!
• Buyers can choose to decorate their home any way you like.
• For buyers keen to keep up with interior trends, you are free to update your interior style with new window dressings, flooring or appliances whenever you feel the need for a refresh.
• Pet-friendly homes are also an option. If your Shared Ownership property is a house, there aren’t usually any restrictions. However, apartments often have a different policy.
• You may be able to run a business from your Shared Ownership home. This would depend on the nature of your lease and the type of business.
• You’re free to sell your home whenever you want, whether you own it outright or still pay rent on a share.
• If the property’s value has increased, you keep any profit of your share.

Final facts

• You can buy more shares whenever you feel ready to, up to owning 100% of the home. This is called ‘staircasing’.
• Nothing is hidden, so rent increases will be outlined in your lease and generally reviewed each year.
• Our monthly service charge covers a host of maintenance for communal area and facilities along with insurance cover for the development and building. Some developments include resident gyms and roof terraces, which will also come under this fee.
• The service charge will be reviewed at the end of the year and the amount will depend on the costs of communal cleaning, gardening and general maintenance.
• If you are a first time buyer in England, you will not need to pay Stamp Duty on homes worth up to £300,000.
• The Stamp Duty tax bill is flexible through Shared Ownership. You’ll have the option to settle this all at once or in increments as you buy more shares.
• Great news though; the current Stamp Duty Holiday also applies to Shared Ownership, meaning you pay zero Stamp Duty on the first £500,000 of your property purchase, applicable if you complete your purchase before June 30^th 2021.
• In many cases, the monthly payments for a Shared Ownership home are less than renting privately.
• It is also worth noting that if you choose to buy more shares in your home, your mortgage payments will increase but your rent will decrease.
• You can pass on a lease in your will and if you hold a joint tenancy, the lease will automatically pass to the surviving party.
• If you own 100% of the property, you can sell it yourself on the open market.

Four easy next steps

And finally, we’ve broken the application process down for you, so you could be four easy steps away from home ownership:

1. Before you start the journey, just take some time to make sure your credit history is in good shape.
2. Once you’ve found your dream Clarion home, apply to Clarion Housing.
3. Next, there will be a brief assessment to confirm your affordability. This is carried out by an independent financial advisor who will evaluate your individual situation. Essentially, they’ll ask all the right questions to ensure that the combined mortgage, service charge and rent is no more than 45% of your income.
4. Next, our independent financial advisor can make a recommendation and you can determine the best initial share to start at.

For further information on Shared Ownership or to view our homes, please visit myclarionhousing.com or call 0300 100 0309.

The capital’s no.1 first time buyer event is going digital for the first time on Saturday 24^th April! Register for your FREE ticket to the Virtual London Home Show to find out more about Shared Ownership, Help to Buy and the buying process.