Benefits of Shared Ownership
Lauren Nicholson, Head of Marketing at Family Mosaic, explains why Shared Ownership is a viable alternative to renting privately.
Lower deposit needed for Shared Ownership homes
Shared Ownership owners across the country need to raise a far lower deposit than the average first time buyer, even when buying a high value property. Monthly housing costs are also lower than those who buy a property outright or rent through a private landlord.
For instance, in London, the average deposit a first time buyer needs to find is £66,726 with a monthly outgoing of £1,720. The average shared ownership deposit required is £18,794 with a monthly outgoing of £857. These figures are based on 20% deposits.
Lauren Nicholson comments: "Shared ownership purchasers tend to be aspirational, working people who are unable to buy a home on the open market but the scheme is flexible enough to help families with incomes up to £90,000 per annum".
"Although in recent years there has been a shortage of mortgages available to first time buyers, the NHF report highlights there are now 20 lenders offering mortgages for Shared Ownership at competitive rates."
Lauren continues: "Our developments are all designed to meet a high specification. Just because they are affordable, does not mean we compromise on quality. In fact, the attention to detail and design of our some of our new properties could rival those on the open market."
Shared Ownership is a viable alternative to renting privately
The report also highlights the average monthly cost of renting privately in London is now £1,348, which is £491 on average more expensive than the monthly cost of owning a Shared Ownership property.
Families increasingly have to look to the private rented sector which is often unaffordable and less secure. Together, these can put added financial pressure on low-to-middle income families. High housing costs can also discourage aspiration, delay people starting families and reduce opportunities to take up employment.
Shared Ownership is an excellent alternative to renting as often the combined monthly mortgage payments and government subsidised rent are lower than for private, rented accommodation. This can be a very attractive option, with rental costs in London at more than twice the national average*.
That proved to be the case for Rebecca Vargassoff who thought she would be renting for life as she wanted to remain in the Canary Wharf area. Rebecca says: "Having found out about Family Mosaic's shared ownership scheme I was able to buy an apartment in my preferred location and still have enough money each month to afford to enjoy life".
With Family Mosaic, you can buy your first home in manageable, affordable stages. You choose an apartment at one of its developments and buy the share you can afford. You can start by purchasing as little as 35% and increase your share at any time all the way to 100% and outright ownership. You will pay a Government subsidised rent on the remaining share of the property.
To qualify for the shared ownership scheme, your total household income must be less than £90,000 per annum. Ideally you should also have savings of around £3,500 to cover moving and legal costs.