We're setting the record straight on some Shared Ownership myths!
We're marking Shared Ownership Week by shining a light on some of the most widely-believed myths around the scheme and setting the record straight.
Shared Ownership gives first-time buyers and those who do not currently own a property the opportunity to secure a new build home with Bromford. Homebuyers pay a mortgage on the share they own, and pay rent on the remaining share, meaning a smaller deposit is required.
Then, when the time is right, where the lease allows, the homeowners can purchase more shares through a process called staircasing, gradually increasing their ownership of their home.
Shared Ownership continues to prove to be the method of choice for more and more people when attempting to get onto or climb the property ladder. Despite this, misinformation and myths still obscure the scheme’s various benefits. We hope that by addressing these misconceptions many will understand the importance of Shared Ownership and how it can be an accessible route to owning a home for those who may otherwise not have been able to.
Here are some of the most common myths and misconceptions:
A lot of people hear the word “shared” and assume that this means they’ll be living with someone else and sharing ownership of the property with another person who also has equity in the home. This is not the case.
Shared Ownership is an affordable way to buy a home, where the prospective homeowner will buy a share of their chosen home, while the remaining share will be owned by Bromford. No one else will be able to buy shares of that chosen home.
It simply isn’t true that because home seekers don’t own 100 per cent of a Bromford home that they won’t be able be able to decorate freely. When moved into a Shared Ownership home, the new homeowner will be allowed to paint, hang wallpaper, and personalise the home to their own tastes, without Bromford’s permission to do so.
However, if moving into a new build, Bromford do recommend waiting a year before doing any decorating to allow the home time to settle. It will also still be necessary to seek permission from Bromford before making any structural changes to the home.
It’s a commonly held belief that homeowners can’t have pets in their new homes because they’re still renting a share of their home and rental properties can have strict rules regarding pets. But, pets are welcome in Bromford Shared Ownership properties. All we ask is that you are sensible with the number and type of pets that are suitable for your home. We'd all love a pet elephant, but it would be a struggle sharing the sofa with them in the evening!
With Bromford Shared Ownership, there are many different types of home that are accessible to fit the needs of the buyer.
Across its numerous developments, Bromford provides 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.
Shared Ownership provides an affordable route onto the property ladder for many different purchasers, not just first-time buyers.
Bromford’s Shared Ownership customers come from all backgrounds, including those creating a new household (for example after a relationship breakdown), existing Shared Ownership customers and those who have owned outright in the past but for whom it is now no longer financially viable.
To see the full eligibility criteria, please visit www.gov.uk/shared-ownership-scheme/who-can-apply.
With Bromford Shared Ownership, the homeowner can gradually increase the share of their home they own, all the way up to 100 per cent ownership if the lease of the home 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.
In 2023/24, of the 101 customers that staircased in their homes, 80 staircased to 100 per cent ownership – just over 79 per cent.
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.
With Bromford Shared Ownership, 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.
Bromford is 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 their website.
FAQs
Got a question about buying a home with Bromford? Take a look at some of our frequently asked questions.