Shared Ownership Week 2019

18 September 2019

It’s Shared Ownership Week 2019 and there’s never been a better time to take your first step onto the property ladder with Waterloo Homes and Fortis Living.

We’re always trying to make buying a home simpler, so here are a few of our most frequently asked questions and answers to help shed some light on shared ownership.

Just what is Shared Ownership? Do I have to share my home with someone else!?

Shared ownership certainly doesn’t mean you have to share your home with anyone else! It simply means that you own a share of one of our properties and we own the rest.

You start by buying a share of a home based on its market value. This is usually around 40% (but it can be as low as 25%) and you only need a mortgage or savings for the share that you buy. Other costs of buying are also kept low as your deposit and legal fees are based on the price of your share, not on the home’s full value.

Find out more on our website: https://www.waterloohomes.org.uk/shared-ownership/what-is-shared-ownership/

Comparing the costs - why should I buy through Shared Ownership?

Because it’s cheaper!

As an example, to buy one of our two bedroom semi-detached houses in Birmingham at full market value would cost £159,000 – meaning you would need a deposit of £7,950 to get just a 5% mortgage, and you would be paying £791 per month in mortgage repayments.

Outright purchase (£159,000 home):

Initial deposit needed:

  • £7,950

Monthly payments (mortgage):

  • £791 for 25 years

However, a 35% Shared Ownership Purchase of the same property would mean you would need only £2782.50 for a 5% deposit and would be paying £277 in mortgage repayments plus £261.84 in rent – a total of £538.84 per month, which is a saving of over £250 per month

Shared Ownership purchase (35% of a £159,000 home):

Initial deposit needed:

  • £2,782.50 (saving £5,167.50)

Monthly payments:

  • £538.84 (mortgage and rent) for first 25 years
  • Then £261.84 (rent) after 25 years
    (saving £252.16 per month in the first 25 years)

(All calculations are based on a mortgage interest rate of 3.92% over a 25 year period and are not including legal fees and other related payments. Individual circumstances can and will differ)

But doesn’t that mean I’ll never fully own my own home?

Not at all! As a shared owner, you have the right to buy further shares in your home if you want and can afford to do so. This is called ‘staircasing’.

Staircasing can help you buy your own home at a pace and time that’s right for you.  The greater the share of your home that you own:

  • the less rent you pay to us – if you buy 100% you will pay no rent at all
  • the more profit you will make on any increase in the value of your home if you decide to sell your home

You can find out more about staircasing on our website: https://www.waterloohomes.org.uk/about-us/shared-owners/buying-more-shares-in-your-home/

This all sounds pretty good – where should I go to start looking for my new home?

We advertise all our homes right here on the front page of our website. You can browse our interactive map, search by post-code, or if you’d rather speak to someone just give our friendly sales team a call on 0345 450 3995. More information and our opening hours can be found on our Contact Us page

Thanks for reading, we hope to hear from you soon to begin your home ownership journey!