Amy Netttleton, Assistant Development Director of Sales and Marketing answers questions about the Shared Ownership scheme.
Shared Ownership is a method of getting on the housing ladder that allows you to simply buy a share of between 25% and 75% of a property from a housing association, then pay an affordable rent on the part that you don’t own – with the option to buy more when you can afford to.
Hi Amy, who are the sort of people who can benefit from the Shared Ownership scheme?
It's quite wide-ranging. It's open to those that can't afford to buy on the market – this includes first-time buyers, people looking to downsize due to marital splits or retirement, and young people getting onto the property ladder. It's a scheme that can benefit a whole host of people.
So what are the benefits when compared to a more traditional route of buying a home?
It's more affordable. You can access the scheme with a 5% deposit, but that deposit is only paid on the share that you are looking to own straight away. This means you can get a mortgage with only a few thousand pounds as a deposit. It also enables you to take it at your own pace: you can buy anything from 25% to 75% of the property straight away.
Let's say I have a Shared Ownership arrangement where I own 50% of the property. What happens if and when the value of the property increases?
It's much the same as buying on the open market – you'd see the benefit or the negative equity on that increase or decrease, and it would all be relative to the share that you own.
So what can you do to prevent the negative equity running away from you?
It's like any market that you enter into, but what Shared Ownership does allow you to do is mitigate that risk with levels of exposure. If you were buying on the open market you're exposed to 100% of that market fluctuation, whereas through a Shared Ownership scheme you could only be exposed to 25% of it. It puts you in a much stronger position to weather that kind of storm.
What sort of properties are Aster offering under this scheme at the moment?
We have homes at Great Western Park in Didcot coming up, where we have over 100 shared ownership homes on offer over a number of years, ranging from 1, 2 and 3 bedroom homes. We can offer the Shared Ownership scheme in a way that's easy to understand so you can actually feel excited about buying a product. We'll make sure that you're fully informed so you can enjoy the process and fall in love with the home that you're buying.