It is well known that buying a home in the UK can be expensive. However, there are ways to save money with shared ownership. This scheme helps people buy a new build home by letting them buy it in shares over time. This makes owning a home more possible and easier to manage for many people who struggle to buy outright. Below, we explain some of the key benefits of buying a home through shared ownership.
Affordability
One of the biggest benefits of shared ownership is that it is more affordable. When you buy a share of a home, the deposit you need is much smaller than if you bought the whole property. You only need a mortgage for the share you are buying. This can be as little as 10% or as much as 75% of the home’s total value. A smaller mortgage means a smaller deposit and lower monthly payments.
Often, the total cost of your mortgage and rent is cheaper than renting a similar home privately. This makes shared ownership a more affordable option for many households.
Flexibility
Shared ownership gives you flexibility as your situation changes. You can choose to buy more shares in your home over time, when you can afford to. This is ‘staircasing’. As you buy more shares, the rent you pay on the remaining share goes down. Some people are able to buy all the shares and own their home in full. This is helpful for people whose income may increase, as they can invest more in their home at their own pace.
Security and Stability
Shared ownership offers more security than renting. As long as you keep up with your mortgage and rent payments, you can stay in your home for as long as you want. You do not need to worry about a landlord ending your tenancy. This is reassuring for families, as it gives them a stable, long-term place to live. This stability is important for school life and family wellbeing.
Quality of Housing
A Sanctuary shared ownership home is a new build in a well-looked-after development. This means you will be moving into a modern home that is energy-efficient and needs less upkeep. Many new homes also come with warranties, such as the NHBC 10-year warranty. This helps protect homeowners from most structural problems and offers peace of mind.
Reduced Maintenance Costs
Because most shared ownership homes are new builds, major repairs are unlikely. This helps to keep maintenance costs low. Many schemes also include service charges that pay for repairs and the care of shared spaces. This reduces the amount homeowners need to spend. It also means they don't have to manage all maintenance themselves.
Start Your Next Chapter in a New Build Home
Shared ownership is a great way for individuals and families to get onto the property ladder. It is especially helpful for those who find it hard to buy a home in the current market. By offering affordability, it bridges the gap between renting and owning a home in full.
If you are looking for a new build home to call your own, Sanctuary is here to help. Take a look at our developments or contact our team today to talk about what you need.