Shared Ownership Developments

The Old City Hospital in Truro, Cornwall has this week seen the first of nearly 200 families move into a major affordable housing development.

Under the Homebuy scheme buyers pay £64,000 and £160 a month rent, as opposed to the normal cost of £160,000 for a two bedroom flat.  Homes are for rent or partial purchase where people can rent plus purchase 40% of the property.
 
Those people that were on the council waiting list have been able to buy the homes from Westcountry Housing Association.  The development is due to end in 2010 with even more homes being added.

The Old City Hospital was closed in January 1999 after being built 200 years earlier, and the development has kept very much in line with the Georgian style and has built an underground car park.  The previous car park leaves a space big enough to landscape a communal garden.

This development is one in a long line of schemes that are under way all over the UK offering people more affordable homes.

With today’s rising prices of houses, it is becoming more difficult for first time buyers to get a step onto the housing ladder!  Could the way of ‘shared ownership’ be the path that many will go down because it is the only affordable way they can?

Shared Ownership A Good Option

Shared ownership can be a much simpler way to allow first time buyers to own their own homes. The scheme is aimed at those who cannot afford to purchase a property outright and it means that instead of trying to raise a full mortgage, you can buy part of it and pay a subsidised rent on the other half! 

With time, you will be able to buy more shares thus increasing your equity in the property, or as in most cases, purchase it outright.

There are, as always ‘ups and downs’ of the government’s New Build Homebuy scheme, which are:

Benefits of the New Build Homebuy Scheme

  1. For many this could be the only way to purchase your own home.
  2. Most, if not all properties are new or refurbished which could save money on not having to decorated/renovate.
  3. You can buy a share as low as 25% or as high as 75%.
  4. You can increase your share/equity by a process known as ‘staircasing’.
  5. If you are in the right job, you will certainly be considered a priority.
  6. Joint application is available if all applicants qualify.

Disadvantages of the New Build Homebuy Scheme

  1. Eligibility can be very slim in certain part of the country.
  2. There could be a long waiting list due to high demand.
  3. Choice of properties and/or locations could limited
  4. From the onset, you will be responsible for all repairs and maintenance of the property unlike renting/leasing.
  5. You may have to obtain permission for any home improvements.
  6. There could be a considerable cost to increase your share.
  7. You may not be able to buy the whole property in some schemes – always double check this!

With the ever increasing population as well as rising prices, the need for more affordable homes is certainly needed here in the UK and what a great idea to convert so many old and abandoned buildings / sites into modern homes while keeping the history and style side by side.