Shared ownership Essex is a government scheme that helps people, more specifically first-time buyers to get onto the property ladder. Shared ownership Essex allows first time buyers to purchase a share of a property and then pay rent on the remaining share; this means they will get to own part of the home. This means they can purchase further shares of the property at a later date; this is ideal for those who can’t afford to buy a property outright but want to be able to own a full property. There are requirements which make you eligible for shared ownership and you must meet all of these requirements. You need to be either a first-time buyer or already be a shared owner, however there are some other circumstances that are accepted, also you mustn’t be able to purchase a property which is suitable for your needs on the open market. You need to be at least 18 years old and your household income needs to be less than £60,000.
Shared ownership allows individuals to have the option of purchasing more shares of a property later on. Each transaction allows you to purchase a minimum of 10%; the problem with this is that most housing associations will only allow you to have three transactions when buying shares. This means that if you want to be able to own the whole property, then you must achieve complete ownership within those three transactions. When you purchase a share, you will purchase it for the current market value. Each time that you purchase a share of the property, the rent that you have to pay will reduce according to the new percentage that you own. Once you manage to reach complete ownership of the property, you will n o longer have to pay rent on it. Purchasing a property can work out to be a lot more expensive than renting and paying mortgage which is why shared ownership Essex is ideal. This is why it’s best that before you make a decision you spend time working out all of the different costs with an independent mortgage advisor.
When working out all of the different costs, make sure you pay attention to other costs that will be involved and may have an impact on your decisions such as mortgage arrangement fees and legal fees. You will need to sort you mortgage out yourself with a high street lender. The process of shared ownership Essex is made up of three simple steps. The first step is to register your interest with a housing association. This allows them to mail you any homes which have recently come available and meet your needs. Then you would go on to view the property, some will allow you to reserve it. Then the final step is to appoint a solicitor so that you can arrange a mortgage, although if you’re renting at this time you will be notified of the anticipated tenancy start date.