Good news, first-time buyers! You have more of a chance to step onto the property ladder due to the recently proposed changes to the UK’s shared ownership Government scheme.
This guide will outline what these shared ownership changes are and how they will work, as well as who can benefit from these changes in Manchester.
What is shared ownership?
Shared ownership gives the chance for first-time buyers to purchase a share in a property that is owned by a private developer or housing association in the UK.
People using shared ownership buy a minimum of 25% of their homes while paying a discounted rent on the remainder of the price.
To be eligible for shared ownership, you must be at least 18 years old and have an annual household income of less than £80,000 (less than £90,000 in London). As well as this, you should generally be a first-time buyer and demonstrate that you have a good credit history.
What are the shared ownership changes and how will they work?
According to the proposed shared ownership changes, shared owners will now be able to increase their share at lower increments.
More specifically, they will be offered the opportunity to buy their home in 1% chunks, as opposed to being forced to save up 10% at a time. For example, rather than saving up £45,000 a time, buyers can now save £4,500.
The future of shared ownership in Manchester
Want to know what to expect from shared ownership in Manchester under the new proposed scheme?
Well, if you are in a £150,000 shared ownership two-bedroom property, you could now save £1,500 at a time to increase your stake and decrease your rent.
Similarly, if you are in a £450,000 shared ownership four-bedroom property, you could now save £4,500 at a time to increase your share and decrease your rent.
Who will benefit from the new shared ownership Government scheme?
The shared ownership Government scheme was initially set up to assist people on lower incomes to step onto the property ladder. The planned changes to the scheme will make it easier for homebuyers to steadily increase their ownership stake.
The Help to Buy Scheme
As well as this, recent changes to the Help to Buy scheme will make it easier for people to take out a mortgage.
In measures that have recently been announced, homeowners and first-time buyers will be given more freedom to take out a 35-year mortgage.
If you’re a first-time buyer, or if you’re already a shared owner, it’s important to know all about how these proposed shared ownership changes will affect you.
Contact our first-time buyer solicitors for more support and information, they’d be more than happy to help.