Shared ownership week is here… let’s discuss everything you need to know about this government-approved homeownership scheme! You can also sign up here for access to useful information and sources.
Discover shared ownership…
Shared ownership allows you to purchase a share of your home, usually between 25 per cent and 75 per cent, and pay subsidised rent on the rest. The deposit you pay is 5-10 per cent of the value of the share you are purchasing rather than the share of the entire value of the home.
In order to be eligible for shared ownership, your household income must be less than £90,000 in London and £80,000 outside of London and you don’t have to be a first-time buyer to be eligible.
Learn about staircasing…
Staircasing means you can increase the share you own of your home over time as your financial situation allows; you could eventually own your home outright (depending on your lease).
For example, if you initially purchased a 25 per cent share, you could buy an additional 25 per cent after a few years, meaning you own 50 per cent of the property in total. This can continue to progress as time goes on and will ultimately decrease your rental payments (although your mortgage payments may go up).
The choice to staircase is completely up to you, as and when you can afford to do so, and it brings a number of benefits…
- LOWER RENT: you reduce the amount of rent you pay to Gateway Housing.
- HIGHER RETURN ON INVESTMENT: when you decide to sell your home, the greater percentage you own the more profit you make.
- GREATER CONTROL: if you staircase to 100 per cent and you own the property outright, you can sell on the open market, using an agent of your choice.
Any additional shares you purchase are based on the current market value of the property. So, if your home is valued at £300,000 and you wish to purchase an additional 25 per cent share, the purchase price will be £75,000.
We recently hosted a staircasing event for our residents at local plant based deli and restaurant, E3 Vegan. We had expert advisors from Gateway, Town & Country Mortgage Services and Capsticks on hand to answer any questions, it was a great opportunity to find out more about your option to staircase and how it all works. There were some delicious canapes on offer too!
Shared ownership with Gateway…
Buying a home can be challenging financially and complex to navigate; we want to make the leap onto the property ladder as accessible as possible. If you’re interested in what your options are with shared ownership, check out some of the exciting new homes we have available in one of the most sought-after areas of East London…
Located in trendy Forest Gate, Earlham Square offers contemporary three-bedroom apartments where prices start from £152,500 for a 25 per cent share, with deposits from just £7,625. Whilst neighbouring The Grove, provides a collection of dynamic one, two and three-bedroom apartments. Prices start from £88,750 for a 25 per cent share of a one-bedroom apartment with deposits from £4,437.50. All apartments have an open-plan living space with sleek interiors. The kitchens feature a comprehensive range of Zanussi integrated appliances – fridge/freezer, dishwasher, hob, oven, microwave and freestanding washer/dryer – all included in the purchase price. Located within an established leafy road in Forest Gate, Forest Gate station is just a four-minute walk away, and with those coveted features of London living, offering convenience, connectivity and much more.
Click here to contact us today to find out more and book a viewing.