Getting on the property ladder isn’t easy these days, but shared ownership offers you a chance to take that first step. Our conveyancing solicitors in Portsmouth can guide you through the process of buying a share of a property.
How shared ownership works
Shared ownership is perfect for people who aren’t able to raise a large deposit or aren’t eligible for a large mortgage. You will pay the deposit and mortgage on part of the property, from 25-75%, and then pay rent to whoever owns the rest of the property. This is usually a housing association or local authority.
Shared ownership is most often offered on new build properties, but sometimes existing properties can be purchased through a resale scheme.
If the property costs £200,000 in total, and you are going for 25% shared ownership, that means you will need to have the deposit and mortgage for just £50,000. Much more doable. You will pay rent on the remaining 75% of the property, valued at £150,000.
Further down the line, provided you keep up with rent and mortgage repayments, you may have an opportunity to buy additional shares of the property.
You can sell a shared ownership property at any time, and if the property has increased in value from when you bought it, you will benefit from the sale. If that £200,000 property has increased in value to £240,000, then your 25% has increased in worth from £50,000 to £60,000.
Buying a shared ownership property isn’t that different from buying a full ownership property. You will still need the services of our conveyancing solicitors in Portsmouth. At Andrew & Andrew, we have plenty of experience in dealing with shared ownership property purchases and sales, and our conveyancing solicitors in Portsmouth can guide you through the whole process.
If you are a first-time buyer, the whole process of buying a property can seem scary and overwhelming. Our conveyancing solicitors in Portsmouth have over 60 years of experience in dealing with property sales, so you can trust that we know what we are doing. We have been awarded accreditation and membership to the Law Society’s Conveyancing Quality Scheme, giving you peace of mind.