Shared ownership mythbusters!
Day to day, our sales team take many potential client calls and answer a lot of customer queries and questions. We've discovered that many of these questions stem from confusion around shared ownership, so our sales team are on a mission to bust those shared ownership myths!
For those that aren't sure, shared ownership is an affordable and accessible way of getting onto the property ladder. With the cost of property increasing and according to the Department of National Statistics, the average property in the UK now costs £226,000, so even a minimum 5% deposit is out reach for many. Shared ownership enables you to buy a share of a property, usually between 25% and 75% share. The share you purchase depends upon how much you can afford, but it means a smaller mortgage, and smaller deposit!
Who do I share with?
This is a valid question, especially with the word “shared” in the title, however contrary to some belief, you don't have to physically share your home with anyone! When you purchase a shared ownership home, you buy a share of the ownership based on what you can afford. The remainder is owned by Redwing Living, and you pay rent on the share that you don't own.
What’s a service charge and why do we have to pay it?
Service charges cover the cost of things such as general maintenance, communal repairs and building insurance. It's paid by all residents of developments with the charge - these are usually apartment blocks, but can be some leasehold housing schemes too. A breakdown of the service charge costs is provided within the property's lease. Annual information of spend and costs can be provided by the development's property manager.
Can I have a lodger?
This is dependent upon your lease. However subletting your property is not allowed (this includes putting it on Air BnB!) as shared ownership is there as an affordable way to help people onto the property ladder, not as a means of generating income or investment.
Will I lose my share if I can’t afford to purchase any more shares?
No, you purchase what you can afford, and you are never obliged to buy more shares, although the option is there.
Can I decorate my shared ownership home?
It depends what you want to do! We'd love you to make your home your own. Internal decoration such a painting and wallpapering is fine. However, if by decorating, you mean structural change, extensions, or changing a bathroom, then you will need to ask permission from your property manager and our homeownership advisor
Can I own a pet in a shared ownership?
This depends upon the individual lease as this specifies if you are allowed pets in your home. At Redwing Living we have homeownership advisors and property manages which can advise on whether pets are permitted in the developments.
Can my partner move in with me?
No problem! We just need you to let your property manager know, so we're aware of who is living in the property.
We hope that we've been able to help answer some of the most common questions about shared ownership myth, but if not, our friendly and experienced sales team are here to help. If you have any questions, or you're interested in buying a shared ownership property, call a sales advisor on 0344 7360062