What is shared ownership?
Shared ownership is aimed at people wishing to buy a property for the first time but who are unable to obtain a large enough mortgage to buy a property outright. The way this works is that you would purchase part of a property in partnership with the owner (usually the landlord or developer). You would be able to choose to buy a 25%, 50% or 75% share of the home and pay an occupancy agreement charge (a type of rent) on the remaining share to the landlord/developer. If you wished to increase your share at a later stage you would be able to do so in multiples of 25%. As your share increases, your occupancy charge decreases accordingly. Ultimately, you would aim to own the house outright.
As a shared owner you will have to meet your own legal costs for the purchase of your share. You will also need to furnish and equip your home. You are also required to pay your own repair costs for your home. This includes your share of any communal repairs that might be needed, for example, replacement of damaged roof tiles. Work such as this will be agreed in advance where possible.
Example of how shared ownership works
This example is based on a 3 bedroom house valued at £155,000 and is for illustrative purposes only. Actual figures would be agreed at the time of purchase.
Hudson Hirsel has a first floor, 2 bed flat available at their Leet Haugh development in Coldstream that should be ready in the first quarter of 2017. You can read more about this and make any enquiries on their website.
Hudson Hirsel are also offering properties for first time buyers under the Scottish Government’s Help to Buy scheme. This means that subject to mortgage, you could own your first home for only 5% deposit. There is more information on the Help to Buy (Scotland) scheme on Hudson Hirsel’s website.