Should I go down the shared ownership route?

QI am a first time buyer and I am really wanting to get a foot on the property ladder. I have heard about shared ownership but I am not sure it is right for me. Can you help please?

Adele Bingham, Birmingham

AI meet and speak with a lot of people who, invariably, answer no – but only because they don’t understand shared ownership. The common misconceptions, shared by many people, are; they never own their home outright, that they have to pay more, or that they will have to share their home with a stranger. Which is not the case, at all! Shared ownership is, put simply, a tool that enables a person (or people) to work towards owning their own home with a smaller deposit when compared to the traditional route. It might look daunting, because it means paying a mortgage on the part being bought and rent on the other. In reality, the mortgage and rent are both related to the size of the share being bought and, in most areas, shared ownership will be less than privately renting.

In my role, working with shared ownership providers and buyers, I understand how shared ownership can be the solution for so many people who feel priced out of owning their own home. I recently spoke with a man whose marriage had broken down. On his own he couldn’t afford to buy a property big enough for him, and his two sons, outright. Shared ownership enabled him to do so and, from that point, make a new start. Being able to buy a brand new home, through shared ownership, also meant his home was more energy efficient and worry free in terms of repairs and maintenance. Now he’s settled, and busy shopping for paint colours. As he builds up more savings he will be able to “staircase”, buying further shares of his home until he reaches 100% ownership.

Shared ownership is right for anyone who feels ready to get on the property ladder but doesn’t have a big enough deposit for the home they need. If that’s you then, yes, shared ownership is definitely the right option.

Paul Walton