Frequently asked questions
The most common questions about shared ownership answered.
Housing associations (like Magna) are not-for-profit companies set up to provide affordable homes. They offer shared ownership properties, to help those who can’t buy a home on the open market.
The lease is the contract for the share you’ve bought. It states your share of your home, what you’ll be paying and what your responsibilities are.
This means increasing the size of your share. You might start off with 25%, but gradually buy more shares to own 50% or even 100%.
The sum of money you need to put down in order to secure your property and essentially the first instalment towards buying it.
A share is the percentage of a property you decide to buy. A mortgage is a loan taken out to buy a property. It’s a fixed amount and has to be paid back over a certain amount of years.
It’s a report by the mortgagee (the bank or building society that’s lending you the money) which values your property and decides how much you can borrow to buy it.
Service charge is the contribution you will need to pay to the housing association for the things like communal maintenance and repairs in an apartment block.
Estate charge is the extra money you might need to pay for the upkeep of your apartment’s grounds.
Who’s shared ownership for?
Shared ownership is relevant for lots of people, at all different stages of life.
Shared ownership is a great option if you’re a first-time buyer. The smaller deposit makes it easier to get on the ladder and shared ownership properties are being built all around the country.
If you’ve recently separated from a partner, a smaller deposit makes it easier to buy somewhere new with your share of any joint assets.
If you’re retired and looking to downsize, but don’t want to reinvest as much of your savings into another property, shared ownership is worth thinking about. The smaller mortgage and deposit frees up money for other things without giving up the security of ownership.
How does it compare?
|Shared ownership||Private renting|
|Investment||You’re a homeowner, so every month’s mortgage is an investment in your future.||You won’t see a return on anything you spend while renting.|
|Stability||You can stay in your home for as long as you like.||You could be asked to leave at any time.|
|Decorating||You’re free to decorate or change things.||You’ll usually have to leave the place exactly as you found it and will get fined otherwise.|
|Monthly Fees||You pay a monthly mortgage, rent and (if you’re in a flat) service charge.||You pay a monthly rent and service charge if you’re in an apartment block. Your landlord’s free to increase the rent however and whenever they see fit.|
|Shared Ownership||Buying on the open market|
|Deposit||Deposits are much smaller, as low as £5,000.||You’ve got to put down a full deposit for the whole property (usually quite a big one).|
|Selling||You can sell whenever you want. Just contact your Magna. We’ll guide you through the process.||You can sell your property to anyone you want and value it yourself or appoint an estate agent.|
|Location||There are shared ownership properties in lots of areas that might be too expensive to consider on the open market.||You’re free to find a property anywhere but are limited to areas within your budget.|