EXPERTS
Agony agent Readers put their property questions to our guest panel of experts: solicitors, mortgage advisers, property gurus and Help to Buy providers
THIS MONTH’S PANEL OF EXPERTS
Simon Scott, Assistant Director of Commercial & Property Marketing, Origin Housing
Sue Dance, Sales & Commercial Manager, Grand Union Housing Group
Shared ownership costs
Q I’ve spent the last couple of years saving for a deposit for a home and have identified shared ownership as a scheme that could help me get on to the property ladder. However, I’m not totally clear on all the costs associated with buying this way – is there any additional support available for first time buyers like me? Nick Rose, North West London A It’s no secret that first time buyers have been impacted by the turbulence of the property market in recent years, with mortgage and interest rates hitting all-time highs and causing additional financial strains. But you’re right, the good news though is that there are specialist schemes, such as shared ownership, which offer an affordable alternative to privately renting or purchasing on the open market for first time buyers. Through shared ownership, you take out the mortgage on a proportion of the property, while paying rent to a housing association on the remaining share.The shared owner takes out a mortgage for the share they are purchasing, therefore the amount of money required for a deposit is usually a lot lower when compared to the amount that would be required when purchasing outright.This is often around 10% of the share value – for example, on a home with a full market value of £325,000, you could purchase a 25% share for £81,250, with a deposit of just £8,125. For many first time buyers in London, where property prices are notoriously high, this is one of the most accessible ways to get on to the property ladder. Other than the deposit, the other initial costs associated with shared ownership are the reservation fee to secure your home, buying costs including solicitor’s fees, mortgage costs and moving costs and any payable Stamp Duty. Providing additional support for first time buyers like you to cover these costs, we are currently running our Origin Kickstart initiative, giving the chance for hopeful purchasers to receive incentives worth £2,500.* Since you live in north west London, you may also be especially interested in our new scheme, Harrow and Wealdstone Heights, where this exclusive incentive is redeemable.The development comprises a collection of one and two bedroom shared ownership apartments that are available to move into now. Just a five-minute walk away is Harrow & Wealdstone station, meaning the development is an ideal choice for commuters and those seeking swift connections into central London. Those who are interested should visit originhousingsales.co.uk/harrow-wealdstone-heights/ or speak to the Origin Housing sales team. Prices for available homes at Harrow and Wealdstone Heights start from £81,250 for a 25% share of a one bedroom apartment (full market value £325,000).
Toby Greenhow, Director and Head of Region, Residential Development Sales, Cambridge, Savills
TEST THE PANEL
We need your questions... If you have any queries, or difficulties in understanding the property buying process, our panel of experts is waiting to help. Send our team your questions on buying property, Help to Buy, legal issues, or your financial problems and we’ll find the best person from the panel to give the advice you need.
Simon Scott
Email your questions to: lynda@ rsttimebuyermag.co.uk
*T&Cs apply. Only applicable on selected developments. This offer includes legal fees, rent charges and broker fees; it cannot be used with any other offer. Incentives are redeemable upon completion and are limited to one per household. Please speak to a member of the Origin sales team for more information.
102 First Time Buyer February/March 2024
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