New build homes
What is shared ownership?
Shared ownership is an affordable home ownership programme. It involves buying a share in a property, usually 50%, and paying rent on the remaining share you do not own. Gradually you may buy further shares in the property known as “staircasing” and eventually purchase the final share so you own your home outright.
- Croft View, Barnton Cheshire
- Barrington Park, Alsager, Cheshire
We are developing more new shared ownership homes across Cheshire. Please register your interest firstname.lastname@example.org
What are the costs associated with shared ownership?
You will need to finance the costs of buying a share in the property. This is normally done by arranging a mortgage.
The other costs of buying will be similar to those of any normal house purchase:
- Legal fees
- Stamp duty (if applicable)
- Valuation fee
- Land Registry fee
Once you have bought a share in a shared ownership home, you will need to consider the regular costs associated with home ownership:
- Monthly mortgage payments
- Council tax
- Water, gas, electricity
- Repair and maintenance
Also remember that further costs will be incurred when you purchase additional shares in the property.
Who does the repairs?
Shared owners have full responsibility for repairs and maintenance themselves.
Quick guide to Shared Ownership
‘Shared Ownership’ is when you part own and part rent your home. Typically a purchaser will buy a ‘share’ between 50% and 75% of the full market value of a property and pay rent to the owner of the remaining ‘share’, in this case, Weaver Vale Housing Trust.
It is an affordable way to buy a home for many people as it means you require a smaller mortgage and deposit. You must buy the largest share that you can afford, up to a maximum of 75% initially and can buy more shares (known as ‘staircasing’) when you can afford to.
If you can afford to buy more than 75%, you should be able to buy a property outright so may not be able to buy a shared ownership property. However, every purchaser is different and we will carry out affordability assessments to ensure that the purchase is both affordable and sustainable and take into account other charges that you may have to pay (e.g. ground rent and service charges), your ability to secure a mortgage and other financial commitments that you may have.
Do I need a deposit?
Your share is usually purchased using a mortgage and you will need a deposit to get a mortgage. The amount will depend on your individual circumstances and the lender that you use. It can range between 5% and 20%.
You will only need a deposit for the share that you are buying, not the full value of the property. So if you are buying 50% share in a home with a full market value of £135,000 and require a deposit of 10%, you will need £6,750 (i.e.10% of £67,500).
We advise all purchasers to seek independent financial advice when looking for a mortgage as not all high street lenders offer shared ownership mortgages; we can provide details of financial advisors who are experienced in shared ownership.
Do I have to get a mortgage or can I buy my share using equity from a previous home or savings?
We understand that some people are unable to secure a mortgage but do have access to funds to buy a share of a home. So we consider every case individually, taking into account personal circumstances, including why you are unable to get a mortgage.
Providing that you meet the criteria for shared ownership, are buying the maximum share that you can afford and have an income to pay the rent and any service charges that may be applicable to the home that you are buying, you may be able to buy a shared ownership home.
How much rent will I pay?
The rent that you pay depends on the share that you buy. As you buy more shares, your rent payment decreases and once you have ‘staircased to 100%, you own all of the property and no longer pay rent.
It is a ‘reduced’ rent that does not include a fee for maintenance services as shared owners are responsible for paying for repairs to their home in the same way that all homeowners are.
The monthly rent is calculated using this calculation: value of unsold equity x 2.75% / 12
The table below illustrates the rent that would be payable on a property with a full market value of £135,000:
|50% - 50%||50% - 50%||75% - 25%||75%-25%|
|buyer has 50% share||'retained' share 50%||
buyer has 75% share
|'retained' share 25%|
|Value bought £67,500||'retained' value £67,500||Value bought £101,250||'retained' value £33,750|
|mortgage needed for £67,500*||monthly rental due £154.69||mortgage needed for £101,250*||monthly rental due £77.34|
|*monthly charges depend on mortgage||*monthly charges depend on mortgage|
Can anyone buy a shared ownership home?
Shared ownership is available to purchasers who can’t buy a home on the open market because they don’t have enough deposit or can’t secure sufficient mortgage. So to qualify for shared ownership you must meet certain criteria:
- Have a household income of less than £80,000 per year
- Not be able to afford to buy a similar property on the open market
- Not already own a property; if you do it must be sold before or at the same time that you complete the purchase of your new home
What other costs are involved?
As well as your deposit, you will need to pay for your valuation and solicitor and depending on who arranges your mortgage, fees to your financial advisor and lender. We advise purchasers to use a solicitor who is experienced in shared ownership sales and can provide you with details of suitable legal firms.
Share/rent figures for illustrative purposes only. Shared ownership available to qualifying purchasers only. YOUR HOME IS AT RISK IF YOU DO NOT MAKE MORTGAGE, RENT OR SECURED LOAN REPAYMENTS
Croft View, Barnton
Introducing Croft View, a development of 7, 2 and 3 bedroom shared ownership homes in the village of Barnton, Cheshire.
Situated on Blackcroft Avenue, a quiet lane overlooking the Cheshire plain in Barnton, Croft View homes offer superbly sized flexible accommdation with off road parking and sizeable gardens.
To make an enquiry please click email@example.com
Barrington Park, Alsager
Barrington Park is a prestigious development of new build homes in Alsager by Jones Homes. We are delighted to offer 9 stunning shared ownership 2 and 3 bedroom mid terrace and end terrace homes on this site. Our 9 homes have something to suit everyone looking to buy via the shared ownership route.
Located on Dunnocksfold Road in the tranquil town of Alsager, each home blends housing heritage with contemporary design and attention to detail. The distinctive exteriors and light and airy interiors combine to create the perfect home to relax in style.
To make an enquiry regarding these homes please click click here
Rightmove, if you would like to view these homes via Rightmove please click on these links;