Shared ownership option for first-buy friends
FRIENDS can also become shared ownership
buyers. That's the buddy-friendly message of hope from Bromford
Homes to first-time buyers who are struggling to save a deposit or
qualify for a mortgage on their own.
The part-buy deal − where you purchase between 25% and 75%
of your home and pay low rent on the remaining share − has
already helped hundreds of couples, young
families and lone first-time buyers to get on
to the property ladder with Bromford.
With prices starting from around £31,250* and deposits as low as
around £1,563* at popular developments like Fortuna in Cirencester, Bromford Homes Sales
and Marketing Director Bev Hall describes part-buy as "one of the
most affordable way of making your home ownership dream come
She's keen to make sure that more people know about the benefits
of part-buy − and that includes young buyers who might want to
buddy up with a friend and share costs with a joint purchase,
especially at pricy places like Cirencester, also known as Capital
of the Cotswolds.
"If you fancy a pad of your own or want to share with a friend
(pictured above), buying through Help to Buy share ownership could
be a truly affordable alternative to living at home with your
parents or renting from a private landlord," Bev explains. "You may
not realise it but you can get on to the property ladder with a
two-bed apartment for as little as £37,500** at a popular
development like Fortuna in Cirencester and your deposit could be
as little as £1,875**."
That's enough to buy a minimum 25% share of a two-bed apartment at
Quiritus House while a more typical 40%
share would cost £60,000** and the deposit as little as
Compare those figures with the average deposit of £32,209 quoted
by the National Housing Federation*** for first-time buyers in the
South West, says Bev, and the fact that typical monthly costs for
part-buy are cheaper than private renting. "It all adds up to a
really affordable how of getting a home of your own − and yet
we're constantly amazed by how many young buyers don't know about
shared ownership or how it works," says Bev.
"We want more people to say 'yes' to shared ownership − not
just in Cirencester but at also at our other developments across
central England − and that includes friends who want to buy a
joint share in a new Bromford home rather than stay with their
parents or rent from a private landlord.
"Even if you do know about shared ownership, you may not realise
that buying with a friend is an option because there are lots of myths and
misunderstandings. For instance, many people think that you
have to be a key workers to qualify for part-buy when, in fact,
that's not true.
"In a nutshell, shared ownership is an affordable option for
young people and other aspiring home-owners who are simply priced
out of the open market. As long as you don't already have a
mortgage and your combined household income isn't more than £60,000
a year you could qualify.
"For some people − especially those on lower incomes −
buying with a friend could mean that getting on to the property
ladder through shared ownership becomes possible or even more
affordable or that, overall, you are able to buy a bigger share of
To find out more about shared ownership, how
it works and local developments, call us on 0845 60 10
878. You call also register for
updates and follow us on Twitter and Facebook.
* £31,250 represents a minimum 25% share of a one-bed apartment
with a market value of £125,000. The deposit, based on a customer
borrowing 95%, would be £1,563.
** £37,500 represents a minimum 25% share of a two-bed apartment
with a market value of £125,000 and the deposit, based on a
customer borrowing 95%, would be £1,563. A typical 40% share of a
two-bed apartment with a market value of £122,500 would be
£60,000 and the deposit, based on a customer borrowing 95%,
would be £3,000.
*** Figures quoted by the National Housing Federation during
Shared Ownership Week 2013.
07 August 2013