It’s no secret that the property market in the UK can be expensive, but there are a few ways that you can make big savings - especially if you’re a first-time buyer or qualify for the shared ownership scheme. This government-backed incentive makes it much easier to own a new build property by letting you purchase it gradually through shares. This arrangement can make homeownership more accessible and manageable for many individuals and families who have struggled to buy a property that meets their needs on the open market. So, let’s take a look at some of the benefits of securing a shared ownership property.
Affordability
One of the most significant advantages of shared ownership is its affordability. Buying a share of a property means that the initial deposit required is much lower than it would be for buying a home outright. You only need a mortgage for the share you are purchasing, which can be as little as 10% or as much as 75% of the home's total value. This smaller mortgage means a smaller deposit and, consequently, smaller monthly payments.
Moreover, the combined cost of mortgage and rent in a shared ownership scheme often proves cheaper than renting a comparable property on the private market, making it an economical choice for many households.
Flexibility
Shared ownership offers considerable flexibility, particularly when it comes to increasing your stake in the property. This process, known as 'staircasing', allows owners to buy additional shares of their home whenever they can afford to do so, potentially leading to full ownership in some cases. Each increase in shares reduces the rent paid on the remaining portion. This flexibility is particularly beneficial for those whose incomes might increase over time, allowing them to invest further in their property at their own pace.
Security and Stability
Entering the housing market through shared ownership provides a level of stability and security that renting simply cannot match. Homeowners can live in their property for as long as they wish, provided they meet their mortgage and rent payments, without worrying about landlords ending their tenancy. This stability can be particularly comforting for families with children, as it provides a long-term, stable home environment, critical for both schooling and family life.
Quality of Housing
A Sanctuary shared ownership property is a new build home that is part of a well-maintained development. This aspect ensures that homeowners are moving into modern, energy-efficient homes that require less maintenance than older properties might need. These homes often come with warranties like the NHBC (National House Building Council) 10-year warranty, which provides protection and peace of mind to new homeowners against most structural issues.
Reduced Maintenance Costs
As many shared ownership homes are new builds, the likelihood of needing significant repairs is incredibly low, reducing maintenance costs. Additionally, many shared ownership arrangements include service charges that cover the upkeep of common areas and repairs, further reducing the financial burden on the homeowner. This setup allows homeowners to enjoy the benefits of a well-maintained property without the full responsibility of maintenance costs that a traditional homeowner would face.
Start Your Next Chapter in a New Build Home
Shared ownership is an excellent way for individuals and families to step onto the property ladder, especially those who may find the market inaccessible otherwise. By offering affordability, flexibility, and security, shared ownership schemes can help bridge the gap between renting and full homeownership, providing a viable, cost-effective path to securing a home.
If you’re interested in finding the perfect new build property to call home, then Sanctuary is here to help. Please take a look at our developments or get in touch with our team today to discuss your needs.