Please find below, answers to the questions and enquiries that we get asked most often. If you can't find the answer you are looking for, please contact us.
What is shared ownership?
Shared ownership is an alternative home ownership scheme which gives those who meet the eligibility criteria, the opportunity to purchase a share in a new build or a resale property.
With shared ownership homes, you buy a percentage of a property and then pay subsided rent on the remaining portion to Sempra Homes.
Shared ownership gives you the stability and security of owning your home in an affordable way.
Am I eligible to purchase a home through shared ownership?
When it comes to purchasing a shared ownership home there is a number of set eligibility criteria you will need to meet in order to be able to purchase a shared ownership property.
What is the shared ownership eligibility criteria?
- You must be at least 18 years old.
- Your household income is £80,000 a year or less (£90,000 a year or less in London)
- You cannot afford all of the deposit and mortgage payments for a home that meets your needs.
- You must show you are not in rent arrears.
- You must be able to demonstrate that you have a good credit history and can afford the regular payments and costs involved in buying a home during the shared ownership credit check.
One of the following must also be true:
- You're a first-time buyer.
- You previously owned a home but you cannot afford to buy one now.
- You're forming a new housefly. E.g- After a relationship breakdown.
- You're an existing shared owner, and you want to move.
What is the difference between private sale and shared ownership?
When buying a private sale home, you would be purchasing the property outright for its full market value. With purchasing a shared ownership home, you would be buying a share of the property, with the initial purchase share ranging from 10%-75%.
The deposit amount when purchasing a property can differ depending on the individual circumstance or on the lender, however it is typically around 10%.
For a private sale home your deposit would be based on the full market value. With a shared ownership home your deposit would be based on the share value that you are purchasing.
For example-
If you are purchasing a 50% share of a property with a full market value of £300,000 the value of your purchase would be £150,000.
A 10% deposit for this would be £15,000. Therefore, making it more affordable for you to purchase a home.
Will I own my own home?
You will own the percentage of shares that you choose. The homes are sold on a leasehold basis, but you can purchase more shares in the future should your financial situation change.
With Sempra's shared ownership properties, you have the opportunity to purchase 100% of the home.
How much will it cost?
Shared ownership homes enable you to put down a smaller deposit than similar homes on an open market. Buyers usually must put down a deposit of between 5%-10%, this will be based on the share you are purchasing. Each month there will be a mortgage payment for the share you purchase, and a subsided rent on the share owned by Sempra Homes.
Other costs to consider with owning a shared ownership home are service charge and building insurance.
In most cases your monthly outgoings when owning a shared ownership home usually works out cheaper or equal to renting privately in the same area.
However, with this, you will own a share of a property and will be on the housing ladder.
