Shared Ownership Scheme
If you want to buy a home but can’t quite afford to, the Shared Ownership Scheme can help.
All of our houses at Priory Chase are part of the Shared Ownership Scheme. This means that you can buy a share of your new home (between 50% – 75% of the full value) and pay rent on the remaining equity. The rent is 2.75% of the remaining shares value.
The Shared Ownership Scheme is a part buy/part rent scheme. It is designed as a stepping stone to completely owning your own home, allowing you to buy further shares in your home (staircasing) when you can afford to.
If the property value – £100,000;
And you purchase 50% of the full property value – £50,000;
You will require a deposit and a mortgage on £50,000;
The deposit will be between 5%-10% (dependent on the lender); for this example we will use 10%
You will require a 10% deposit of £50,000 = £5,000 and a mortgage of £45,000
The monthly rent payable on the remaining 50% at 2.75% will be – £114.58 per calendar month
You can qualify for the Shared Ownership Scheme if:
• You are a first time buyer or a non-homeowner (you may have owned in the past) who cannot afford to buy a home outright.
• Your household earns £80,000 a year or less.