Popular Scenarios for Shared Ownership in London
As a Mortgage Broker in London, we always receive questions from customers wanting to begin their Shared Ownership journey in London. It’s totally normal to not know how to start the process and want to ask questions! We would rather that you ask questions so that everything is explained to you transparently and with simplicity.
Here are some of the most common questions we are asked about Shared Ownership in London:
Do I need a deposit?
Nine times out of ten, you will need a deposit for any type of mortgage (the odd occasions include gifted deposits and Right to Buy purchases). Shared Ownership works the same, however, you will only need to put down a deposit on the share that you are buying.
For example, if you are purchasing a property valued at £300,000 and you wanted to buy a 50% share, you need to put down a deposit for the £150,000 mortgage you are taking out. In this case, if your minimum required deposit was 5%, you would only need to put down a £7,500 deposit. Despite your monthly repayments being lower, you will also have to account for rent payments.
Can I increase my share of the property?
In the industry, this is known as “staircasing”. This is when a homeowner asks the local authority and building society if they can increase the share that they own.
If you only own 10% of the property initially, you should have the option, for example, to purchase a further 25%, should it be affordable in the future.
Are there any other fees that come with Shared Ownership in London?
Because all Shared Ownership homes are leasehold, you will face ground and service fees on top of your regular mortgage payments and rent. You will also have to consider the costs that come with taking out a mortgage; costs could include property surveys, legal fees and any broker fees.
When selecting a property survey, even if you have to pay a little bit more, it could be worth upgrading to a more in-depth survey so that if there are any issues present with your potential future home, you know of them. Anything you don’t look at could harm the property’s value in a few years’ time. A dedicated mortgage advisor in London will advise you on the best survey to take.
Can you take out a Shared Ownership mortgage on any property?
The Shared Ownership Scheme is limited to properties that are owned by housing associations or builders. In some cases, the property that you are looking at may have been built for a Shared Ownership mortgage and you would not be able to take a regular mortgage out on it.
Our job is to explain the whole of the process to you; how Shared Ownership works, why it may be beneficial to you and how we can get started!
Book a free mortgage appointment today and get started on the process of Shared Ownership in London.
Why Choose us for Shared Ownership Mortgage Advice in London?
Mortgage Experts – Shared Ownership in London
We have been helping home buyers with Shared Ownership mortgages for years now and we want to help you next. During your free mortgage appointment, we will be able to discuss the process and see whether you meet the scheme’s requirements.
We have been working in the mortgage industry for over 20 years now and have helped many customers achieve their homebuying dreams. we love providing a great service! Customer service is always at the forefront of what we do here.
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