Our top 5 Shared Ownership myths debunked
We’re putting an end to a few of the most widely-believed myths about Shared Ownership.
Shared Ownership is becoming the perfect choice for more and more of our customers who are attempting to get onto or climb the property ladder. Despite this, misinformation and myth still surround the scheme and its various benefits. We hope that by addressing these common misconceptions that many will understand the importance of Shared Ownership and how it can give a route to owning a home for those who may otherwise not have been able to. Below are our top five Shared Ownership myths.
1. Shared Ownership is only for first-time buyers
Shared Ownership is a route onto the property ladder for many different purchasers, not just first-time buyers. Our Shared Ownership customers come from all backgrounds, including those creating a new household, existing shared ownership customers and those who have owned outright in the past but it is now no longer financially viable. To see the full eligibility criteria, please visit the Government page here.
2. You can’t sell your Shared Ownership home
Many believe those using Shared Ownership cannot sell their home unless they have staircased up to 100 per cent, but this is not the case. Sellers are allowed to instruct an estate agent of their choice to sell both their share and Bromford’s share on the open market. This allows for an easier selling process, meaning you can sell your Shared Ownership property more quickly.
3. You need a larger deposit for a Shared Ownership home
As with traditional home buying, homeowners are only required to pay a deposit based on the value of the property they own. Just as a full sale purchaser may pay five or 10 per cent on 100 per cent of their new home, a shared ownership buyer may pay five or 10 per cent on 25 per cent of their new home, or on whatever percentage of their home they are purchasing.
4. You can only purchase a certain type of home under the Shared Ownership scheme
There are many different types of home that are accessible to fit the needs of the customer. Across our developments we provide Shared Ownership on terraced, semi-detached and detached homes ranging from two-bedrooms to four-bedroom, as well as one-, two and three-bedroom apartments.
5. You’ll never own your home outright if you buy with Shared Ownership
Depending on the terms of their lease, the homeowner can gradually increase the share of their home they own, all the way up to 100 per cent ownership of the property of the lease allows. This process is known as staircasing, and it allows the home buyer to budget at their own pace, meaning they can increase their owned stake as they see fit. We’re part of the national shared ownership campaign supported by the National Housing Federation. The campaign to raise awareness of shared ownership, supported by almost 50 organisations. For more information, please visit here.