Your Shared Ownership Questions answered with Catalyst
What is Shared Ownership?
Shared Ownership is a government-backed part-buy, part-rent scheme that allows buyers to purchase a percentage share of their home and pay rent on the remaining portion. This initial share purchased can be between 25% – 75%, giving buyers the flexibility to purchase what they can afford.
Buyers will usually need a 5-10% deposit and mortgage to cover the share you are buying, helping to dramatically lower the savings needed to get on to the property ladder, compared to buying on the open market.
What are the benefits of Shared Ownership?
There are plenty of advantages of purchasing a home through Shared Ownership, the main one being that it is a more affordable way to buy a home. The initial deposit required is much lower than on the open market, due to the deposit amount being based on the shared percentage of the property.
More accessible for lower income buyers, a Shared Ownership mortgage only needs to be secured on the share that the buyer is purchasing, which through Catalyst, starts from £85,000 for a 25% share at Newman Place in Oxfordshire.
What types of buyers should purchase a home through Shared Ownership?
Shared Ownership is aimed at first-time buyers as a way to help them onto the property ladder. To be eligible for the scheme you must not already own a home, or part of a home, at the time of purchase.
The types of first-time buyers purchasing through Shared Ownership varies – we often see solo young professionals searching for an apartment in the city, as well as couples wanting to take the next step together, and families searching for multi-bedroom houses across the southeast.
You must have a maximum household income of £90,000 if the home you are buying is located in the capital– or £80,000 if buying outside of London. Certain developments may have additional eligibility criteria too, such as a requirement to already live or work in the borough, so it’s important to speak directly with the sales team at each development to find out the specifics.
Is Shared Ownership worth it?
Shared Ownership can be a successful way for first-time buyers to own their own home, offering an affordable route onto the property ladder in areas of the UK that are often considered out of reach.
At Catalyst, we have plenty of happy customers who are delighted with their Shared Ownership purchase!
Mehreen Faryard purchased a 35% share of a one-bedroom apartment with a private terrace at The Switch in Wimbledon, and comments “I feel so happy and comfortable here. Shared Ownership has given me the opportunity to finally move out, but stay local to my family which I never thought I’d be able to afford. I’m excited to continue to settle into my new home, and maybe I’ll look into staircasing in the future!”
Dannielle Herman purchased a two-bedroom, two-bathroom apartment at Newman Place – a new development by Catalyst in Littlemore, on the outskirts of Oxford city. She explains
“I clicked through to the Catalyst website, where I registered my interest and signed up for the virtual preview event for Newman Place. During the online event, I found out so much about Shared Ownership, including how affordable it is, and received loads of information about the development – I knew at that point that Newman Place was where I wanted to buy.”
“I’m so proud to be a homeowner in Oxford, and to have managed to do it all by myself. I’m really enjoying my lovely new home, and plan to be here for the foreseeable!”
Angelica recently purchased a 75% shared of a one-bedroom Shared Ownership apartment at The Folium in Muswell Hill. She comments
“I didn’t know much about Shared Ownership prior to my visit, but after some research and confirming my eligibility, I realised I was able to afford a home in such a lovely area! As a first-time buyer in London, it was the only way I could’ve bought in such a great location, so it was a no brainer for me.”
“It’s a huge sense of achievement buying my first home, and I’m really enjoying everything The Folium and Muswell Hill has to offer!”
At Catalyst, we offer a variety of Shared Ownership homes available across London and the South East, find out more about our available homes here.