Have you outgrown your current home? You might be able to upsize with Shared Ownership.
So, you’ve welcomed another family member (or two) to your tribe. Suddenly, your once-perfect home feels a lot smaller. You’ve tripped over a rogue toy, battled for the bathroom, and your kitchen table has become part-time office, full-time craft station. If you’re one argument away from moving into the shed for a bit of “peace and quiet,” we hear you.
But, finding a bigger home that doesn’t come with an eye-watering price tag, or the upheaval of relocating can feel impossible. That’s where Shared Ownership comes in – an affordable route to a bigger home that fits your needs, without the large mortgage that usually comes with it.
Wallet friendly repayments
You might be surprised to learn that monthly repayments are often cheaper through Shared Ownership (including mortgage, rent and service charge) than if you were to buy the same home outright. This is because you only purchase the share of the home that you can afford, typically between 25% and 40% of the full market value, reducing the amount you need to borrow as a mortgage.
Take our four bedroom houses at Moonhill Rise in Exeter – these spacious, energy efficient homes will cost you roughly £1,493 per month to buy through Shared Ownership*. Buying the same property, on the same repayment terms, from the open market would cost around £2,121 per month according to MoneyHelper’s mortgage calculator1 - that’s a difference of £628!
What’s more, it also comes in £318 cheaper than the average monthly rent for a home with four or more bedrooms in Exeter2, and you get the added bonus of building up equity in a saleable asset each month.
Smaller deposit
Deposits on a Shared Ownership home typically start from 5% of the share value you purchase, rather than the 10% deposits often required on a full ownership property, helping you to stop saving and start moving sooner.
For example, at our Nobel Park development in Didcot, 5% deposits start from just £8,500 for a 3 bedroom house (based on buying a 40% share for £170,000). The full market value of the house is £425,000, meaning a 10% deposit to buy the same property outright would be £42,500.
A home that grows with you
Most Shared Ownership properties benefit from open-plan layouts and multi-purpose living spaces which can easily grow and adapt to your needs. Added details like additional plug sockets and storage space, which are regularly found in newer homes, can also help make daily life that little bit more comfortable.
Additionally, your share in your home can grow at a speed that suits you through a process called staircasing. Whether it’s a pay rise, a bonus, or just needing more time to save, Shared Ownership allows you the flexibility to increase your ownership at your own speed. So, you can start small in a home that fits your needs while planning for the future without overstretching your budget.
In the area you love
Finding a larger home that's affordable doesn’t mean much if it’s two-hours’ drive from your work or your children’s schools. Shared Ownership can help you find a larger property in areas where buying outright might otherwise be out of reach.
We have developments across the south of England, from Devon to Essex and plenty in between, meaning you’re more likely to find a bigger home, in the right location, at an affordable price.
To view our full of our developments across the south and west, click here.
To view a list of our developments in London, click here.
*£895.40 mortgage, £570.63 rent, and £27.06 service charge. Based on buying a 40% share of a four bedroom house for £166,000 (full market value £415,000). Calculated at a 95% mortgage value - based on a 5% deposit requirement, and with a mortgage interest rate of 5.5% over 30 years. The figures provided are for illustration purposes only. Rent and services charges are subject to change and should be confirmed by the sales consultant.
[1] To visit MoneyHelper’s mortgage repayment calculator, click here.
[2] To view the ONS data on the average house prices and rents in Exeter, click here.