Today – Shared ownership What you need to know
London living. It’s an enticing prospect. You don’t have to clock up significant e-mileage before you reach a compilation of reasons that herald it as the greatest city in the world.
Yes, there are ample gastronomic revelations that transform food trends across the globe. There are also more art exhibitions, performances and historic sights than the average annual diary can contain.
But the reality of the lifestyle that comes with living in the capital however, comes down to just that: capital.
It wasn’t long ago that headlines read “London rents are now twice the national average” across the tabloids and broadsheets. Now while we’re hearing that the London property market is going through a long-overdue cooling process, average houses in zone 2 are still enjoying a meteoric rise in value of 61% in just 16 weeks.
So how can those on a shoestring budget possibly afford to live in London, let alone enjoy its delights? Enter Mayor of London, Boris Johnson’s First Steps shared ownership programme.
Shared ownership What you need to know
Aiming to help people fulfil their aspirations to become homeowners, it’s specifically for those on low and modest incomes. The homes on offer are spread throughout London and require an average deposit of £12,000.
What is shared ownership?
Shared ownership is a government funded scheme with the sole ambition of helping Londoners get on the property market.
The scheme presents an opportunity to buy property from anywhere between 25 to 75 percent in shares. The remaining debt is made part of the rent and reduced, resulting in an overall decrease in deposit and mortgage amount.
The scheme itself is run by the housing association who will own the remaining shares.
Can I apply for shared ownership?
It doesn’t matter if you’re a first-time buyer or an existing homeowner. First Steps is for people who simply cannot afford their next property.
You can either buy alone, or with another person providing that your single or combined annual income falls between £20,000 and £66,000.
If you’re really worried about your potential financial status further down the line, on his site, Lee Robertson (founder of Investment Quorum and one of the top fifteen wealth managers in the UK as recognised by Spear’s Wealth Index) advises that you should hold back with at least six months’ salary resting in your bank account at all times – after all, buying a house is one of the most expensive purchases you make, and usually costs more than you think.
What are shared ownership homes like?
Nearly all shared ownership properties are newly built apartments and you’ll be able to find them in every zone in London.
There are numerous estate agents that will be able to help you locate the right property for you and they may not even charge for the advice. Acton based estate agents iProperties remind prospective homeowners that getting on the ladder is important, but neglecting the significance of proximity to work and family could be dangerous.
Can I sell my shared ownership shares?
There will be resale opportunities if a buyer chooses to sell their share of the property.
Whether you want to try the transatlantic Bubba Gump Shrimp Co’s new Leicester Square hangout or go late at the Tate, First Steps ensures you won’t have to worry about enduring another month of soup dinners in exchange for taking part in the city’s wonders.
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