Shared ownership costs are generally lower than alternative housing options for several reasons; it’s great for people who have the goal of buying their own home but do not have the funds to buy on the open market. Shared ownership offers rent that is less than the rate charged on the open market and most people can start with a 40% share but in some cases as little as a 10% share, depending on the terms of your lease. This, therefore, means a low deposit – typically only 5% of the share you are buying and not of the whole property value.
You can add or remove someone from your property legally, however, you would require legal representation to carry this out. Please contact ProLead regarding the fees payable to do this and for more information.
You can switch mortgage providers or change to a new product with your current provider and may need legal representation to do this. Please contact ProLeads regarding the fees payable to do this and for more information.
Yes, with a shared ownership home, you need to pay rent to ProLeads based on the part of the property you haven’t purchased. Rents will be reviewed each year so your rent may increase. The amount of rent you pay will be based on the share you purchase, if you buy more shares, you’ll pay less rent.
Unfortunately, you need to have 100% ownership before any lender will consider you or your property for an equity release mortgage even if it is shared ownership. However, if you need to borrow money for home improvements it might be possible to arrange a residential mortgage.
