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Shared ownership is an excellent option for both first-time buyers and those looking to move home in Durham.
It offers an affordable way to enter the property market without needing to take out a mortgage for the full property value.
Under the shared ownership scheme in Durham, you can purchase a portion of the home, typically between 25-75% of its value, although in some cases this can be as low as 10%.
The remaining share is owned by a housing association or builder, and you will pay rent on the portion you don’t own.
The terms of your agreement may allow you to buy additional shares over time, a process known as staircasing, which can eventually lead to owning the full property.
Staircasing is entirely up to you, and as market conditions change, this could also affect your mortgage. In some cases, you may be able to use a further advance to help buy more shares.
Your mortgage advisor in Durham will be able to provide a clearer understanding of how staircasing works and how it may impact your finances.
If you’re considering a shared ownership mortgage in Durham, there are several factors to keep in mind. First and foremost, you must be over 18 to qualify for any property purchase.
Additionally, your annual household income cannot exceed £80,000, and you must not be able to afford the deposit or mortgage payments for the full property value in Durham.
This means you’ll need to cover a 5% deposit based on the percentage of the property you plan to buy.
For example, if you’re purchasing 50% of a property valued at £100,000, your deposit would be £2,500.
Your financial situation must fall within these limits, as shared ownership is designed to help those who cannot afford to buy outright.
You also need to fit into one of the following categories: you’re a first-time buyer in Durham, you’ve previously owned a home but can’t afford a new one, you’re forming a new household, or you already own a shared ownership property and are looking to move.
If you meet these criteria, a mortgage broker in Durham will be able to confirm whether shared ownership is right for you or suggest other schemes that might be more suitable.
For current homeowners in Durham looking to buy through shared ownership, you must have an accepted offer (sold subject to contract) on your current property.
You’ll also need a memorandum of sale, which confirms the sale price and your intention to sell.
Before completing the purchase of your shared ownership home in Durham, your existing property must be sold.
Even if you’re over 55, shared ownership in Durham could still be a viable option.
There are mortgage products specifically for those over 50 that could help.
Additionally, shared ownership may also support long-term disability needs, such as purchasing a ground-floor property.
Members or former members of the armed forces are often given priority on shared ownership homes in Durham, depending on their service.
The percentage of the property you can buy through shared ownership in Durham will depend on your financial situation and the terms set by the housing association or builder.
Typically, you can purchase between 25-75% of the property value, though in some cases this could go as low as 10%. You will also need to provide a 5% deposit based on the share you are buying.
For instance, if you’re purchasing 50% of a property valued at £100,000, you would need a deposit of £2,500.
You may also have the option to buy more shares later, but if this is not available, getting a shared ownership mortgage may be more complex.
Your mortgage advisor in Durham will help navigate any challenges and ensure you understand the process fully.
While you are technically sharing ownership of your home with a housing association or builder, you can still take out a shared ownership mortgage in Durham with another person, whether it’s a partner or a friend.
There are no restrictions preventing joint mortgages under shared ownership, allowing you to share the mortgage responsibility.
Selling a shared ownership home in Durham can be slightly more complex than selling a fully owned property.
To sell outright, you need to own 100% of the property. If you don’t yet own the full property, you must inform the housing association or builder.
They will then have the first right of refusal, which means they have the legal right to either buy back the property or find another shared ownership buyer.
If they don’t exercise this right within the agreed timeframe, you may then list your Durham property on the open market.
The terms of your lease may also affect your ability to sell, especially if it includes mandatory buyback clauses, where the housing association has the final say.
Besides your mortgage payments and rent, shared ownership in Durham often comes with additional costs such as service charges, maintenance fees, and possibly ground rent.
These are typically adjusted annually and depend on the upkeep of communal areas or specific services provided by the landlord.
Utility bills, council tax, and contents insurance will still be your responsibility, along with any solicitor fees involved in the process.
Your mortgage advisor in Durham can help explain these costs in more detail and offer advice on what to expect.
If you want to look at how Stamp Duty Land Tax may affect you as a first-time buyer under shared ownership, we recommend speaking to a qualified tax advisor.
If you’re considering making renovations to your shared ownership home in Durham, it’s important to check with your landlord first.
Much like traditional renting, significant alterations often require permission.
Keep in mind that any improvements could raise the value of the property, which may impact the cost of purchasing additional shares in the future.
Remortgaging a shared ownership property in Durham can be complex, but it’s possible to remortgage for a better interest rate on the portion you own or to purchase additional shares
You may also consider releasing equity. It’s advisable to speak with a mortgage broker in Durham to fully explore your remortgage options under shared ownership.
The responsibility for repairs and maintenance usually falls to you, the homeowner.
You may be required to contribute to communal area maintenance through your service charges.
These fees can fluctuate depending on the work completed throughout the year, so it’s worth discussing specifics with your landlord.
If you’ve purchased a property through shared ownership in Durham, you typically have the right to extend the lease.
The costs involved can vary, but it’s generally more cost-effective to do this before the remaining lease term drops below 80 years.
Extending your lease earlier can help avoid additional costs, and your mortgage advisor in Durham can guide you through the process.
Even if you have bad credit, you may still be able to secure a mortgage for a shared ownership property in Durham.
While the process can be more challenging, options like putting down a larger deposit or accepting higher interest rates might be available.
In some cases, purchasing a smaller percentage or using a gifted deposit can also help you access a shared ownership mortgage with bad credit.
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Malcolm and his team were nothing short if amazing helping guide us through somewhat tricky process of buying our home. They were friendly, patient and efficient and deserve more than a five star rating. Thank you again to Malcolm and his team.
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Malcom, was professional and helped sercure the best mortagage deal for us. We were apprehensive about using a mortage broker as we had never used this kind of service before, but Malcom and the team made it so easy from start to finish,friendly...
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Professional all the way. Excellent advice from Wayne followed by excellent administration by Anna to complete the transaction. Would recommend.
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Excellent Staff and Service, I would definitely use them again They were very helpful all through the process of my remortgage providing me with the best deal and assisting with any issues or concerns i had, very prompt on replies to my calls and...
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Joe and Chloe have been so helpful sorting out our remortgage. They did all the hard work. I would highly recommend Durham Money Man to anyone! Fab job guys!
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Was very professional and very helpful.
3 years ago
Anonymous
We are very pleased with the service we received. Everything was very simple and the mortgage brokers done everything for us. The mortgage deal they found was significantly less than any we could find ourselves, so it's worth paying the broker fee...
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Fantastic service! Amazing advice and guidance throughout my mortgage application. Would recommend Durhammoneyman to anyone!
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Durhammoneyman have been an absolute lifesaver in helping me to get a mortgage. Their support, advice and assistance throughout the process has been above and beyond what I could have expected. Without them I would not have been able to navigate...
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I cannot fault the service I have received from Leo, Wendy and the team. They have made a potentially stressful process very easy, offering support and guidance throughout. I would recommend this team to anyone in need of mortgage advice. Thank...
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Matt was first of all hugely understanding and quite reassuring in what I knew would prove a difficult task! Under 2 years self employment history, trying to gain a second family home without selling the first and possessing a buy to let which also...
5 years ago
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I had a complex situation and I was nervous about the whole thing. Chris worked his magic and got me a mortgage offer within 2 weeks. I was amazed. Working full time I found the evening appointments terrific.
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Thank you to Laura and Matt who worked seamlessly to get my remortgage offered. I’m really happy with my new deal, much better rate than what my bank were offering.
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My mortgage broker was easy to get hold of and efficient. Overall my experience was good value for money. As a first time buyer I felt I had support throughout my purchase.
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We rang these guys when we had been promised a mortgage by our Bank who then changed their minds. To be honest we didn’t know whether or not we’d be able to get a mortgage but during the first call with Durham Moneyman we felt they understood...
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When applying for a shared ownership mortgage in Durham, your mortgage advisor will review your income and expenses to determine your eligibility. This assessment ensures that the shared ownership scheme is affordable for you based on your financial situation. The advisor will work through your monthly budget to ensure you can comfortably meet mortgage and rent payments.
Your mortgage broker in Durham will have access to a wide range of mortgage products, allowing them to identify the best deal for your shared ownership needs. They will consider factors like interest rates, repayment options, and additional fees, helping you find a mortgage that suits both your immediate and long-term financial goals.
Once your purchase offer is accepted, your mortgage advisor will submit your full mortgage application along with any required documents to the lender. This is an important part of the process and includes information such as proof of income, credit checks, and other supporting paperwork. Your advisor in Durham will ensure everything is in order before submission.
When you secure a shared ownership mortgage in Durham, it’s important to also consider insurance options to protect your home and family. Your mortgage broker can recommend policies such as life insurance, home insurance, and critical illness cover, ensuring that you and your loved ones are protected throughout your mortgage term.
Our mortgage advisors in Durham have extensive experience helping home buyers and current homeowners navigate the shared ownership process. With their in-depth knowledge, they can help you understand the ins and outs of shared ownership and support you in making informed decisions every step of the way.
As a mortgage broker in Durham, we pride ourselves on delivering exceptional service to every customer. From first-time buyers to those looking to move homes, we have a long history of satisfied clients. You can read our many positive customer reviews, which reflect our commitment to putting our customers first and helping them achieve their homeownership dreams.
We understand that life can be busy, so our mortgage advisors in Durham are available to meet at times that suit your schedule. Whether it’s early mornings, evenings, or weekends, we offer appointments 7 days a week to ensure you can access the advice and support you need at a time that works best for you.
As an independent mortgage broker in Durham, we have access to a large panel of both high street and specialist lenders. This allows us to tailor our advice to your individual circumstances, ensuring you get the best possible mortgage deal that fits your needs and financial situation.
If you’re a first-time buyer or key worker, such as a teacher or nurse, you may find properties in Durham that fall under the First Homes Scheme.
This initiative offers newly built homes at a significant discount from market value, sometimes as much as 30-50%.
This permanent discount ensures the home remains affordable for future buyers when sold.
A Lifetime ISA is an excellent tool for people aged 18-39 who want to save for their first home in Durham.
You can contribute up to £4,000 annually, with the government adding a 25% bonus (up to £1,000 a year).
These funds, including the government’s top-up, can be used to buy a home valued at up to £450,000, making it a valuable resource for those looking to get onto the property ladder.
If you’re renting a council or housing association property in Durham, the Right to Buy scheme can be a great way to become a homeowner.
This scheme offers significant discounts based on how long you’ve been a tenant, often eliminating the need to save for a large deposit.
Just keep in mind, if you sell the property within the first five years, you may have to repay some or all of the discount.
For first-time buyers in Durham struggling to save a deposit, 95% mortgages can be a fantastic option.
With only a 5% deposit required, this type of mortgage is designed to help more people get onto the property ladder.
It’s a popular choice encouraged by the government, making homeownership more accessible for first-time buyers in Durham.
If you need help qualifying for a larger mortgage, a joint borrower, sole proprietor mortgage could be the solution.
This allows a family member or friend to join you on the mortgage without being listed on the property’s deeds.
Their income can be factored into affordability checks, potentially allowing you to borrow more while keeping the property in your name.
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Durhammoneyman.com & Durhammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Durhammoneyman.com & Durhammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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