Escalating property costs are preventing many first time buyers from purchasing their first property, numerous schemes are now being developed, within both the public and commercial sectors, to allow individuals to purchase a property that they would not otherwise be able to afford.
Shared ownership mortgage schemes are a Government incentive backed up by developers and housing associations in order to provide highly quality affordable housing for first time buyers and other key workers.
Shared ownership mortgage allows an individual to purchase a percentage of the property, and to pay rent on the remaining portion. This way, an individual is able to begin the process of owning their own property and reducing their monthly bills whilst still being able to obtain the necessary mortgage. The remaining percentage of the property is owned jointly, usually with a housing association, who will charge you a 'rent' for the section you do not own.
Although the vast majority of properties offered on a shared ownership basis are from housing associations and are, therefore, housing association properties, which are normally flats or terraced properties in more populated areas, there are some commercial companies now offering properties for shared ownership.
With commercial companies, the choice of property is likely to be more varied, possibly in less populated areas or in other more rural areas. Of course, with a commercial company, the terms are variable and prospective purchasers will have to make further enquiries, on an individual basis, as the process is not regulated centrally by government.