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Shared Ownership

If you are looking for a way to get onto the property ladder without having to save for a lifetime for a deposit, then Shared Ownership may well be the route for you.

What is Shared Ownership?

Shared Ownership is a scheme by which you can purchase a stake in a house from a landlord, such as North Devon Homes (NDH). The amount of the purchase varies but usually you will find it is around 35% at first with the option to staircase to more. Read further on to find out more about staircasing.

It depends on the property you are looking to buy but it can usually be as low as £2-3,000.

When you buy a Shared Ownership home, you will need your initial deposit, and then moving forward you will pay back monthly your mortgage to your lender and the rent on the share on the home your landlord owns. So, for example, if you buy a 35% share of a £200,000 home your 10% deposit to pay outright would be £7,000. You would then have a £63,000 mortgage to repay monthly and NDH would charge rent on the remaining 65% of your home. The total monthly costs of your mortgage and rent would vary depending on the location and mortgage rates but we find that it can usually be a lower cost than renting the equivalent home in the local area privately. Plus, 35% of these payments are going to your own pocket and equity rather than a private landlord. Our rent payments are usually below market rent values.

Help to Buy is where we advertise all our Shared Ownership properties and is a scheme where you can borrow extra money at low interest to help top up your deposit and lower your initial mortgage.

In most circumstances (depending on the site or planning permission restrictions) you can buy more shares of your home until you own it outright. This is called staircasing. This can be as quick or as slow as you can afford. Some developments do have restrictions on buying more shares, but this would be stated before you make any purchase.

You can decorate inside your home; it is your home to make look however you wish. The only restrictions we set as a landlord are on the building structure and assets, for example the kitchen and bathroom. We would ask that any major changes to the building are run by us before doing any work. In most cases we will allow changes to be made but we may set guidelines or preferences for how things are done.

The first step is to register with Help to Buy South. They are the regional agents for North Devon and beyond and we list our properties on their portal. They also have lots of other useful information about Shared Ownership and the Help to Buy scheme.

If you’d like to find out more about purchasing one of our Shared Ownership properties and want to ask more about our side of services as a landlord get in touch with our Developments and Regeneration Team by email [email protected] or by phone 01271 312528.