Affordable homes provider Plumlife is marking Shared Ownership Week (21 to 27 September, 2017) by celebrating helping 375 individuals, couples and families onto the property ladder.
Shared ownership is a government-backed scheme which provides an affordable way to buy a new home, if you can’t afford a mortgage for the full asking price. It allows the buyer to buy a share of the new home (usually between 35 and 75 per cent) and pay a small rent on the remaining part until the buyer owns the home outright.
Lisa Westerman, group head of sales at Plumlife, said: “Shared ownership has many benefits, but it also allows a small deposit and it gives a huge variety of people – from first-time buyers, retired, single people and families – a chance to get a foothold on the property ladder.
“Deposits are one of the biggest challenges for buyers and shared ownership, along with other Help to Buy schemes, can make owning your own home more achievable.”
Halifax’s First Time Buyer Review recently (July 2017) highlighted that the average deposit needed by a first-time buyer has doubled to £32,321.
As an example, a home with shared ownership for £150k, for a 35% share (£52,500) will require a 5% deposit of £2,625.
Eligibility criteria
Lisa continued: “Shared ownership isn’t just for first time buyers, however, there is eligibility criteria – they can’t afford to buy a home on the open market and their total household income is £80,000 a year or less.
“Some shared ownership schemes ask for local connections, such as living, working or having family in the local area and give priority to the bereaved, the British Armed Forces or social housing tenants.”
Plumlife has plans to offer a further 650 homes on a shared ownership basis before 2021.
CASE STUDY: Caroline King
Caroline (pictured above), 71, who is retired and from Wigan bought a two bedroom home at Plumlife’s Pennington Wharf development in Leigh on shared ownership.
She said: “My husband and I sold our house in 2007, we’d always been homeowners. We made the decision to sell our property as we considered moving abroad, but decided to rent in the meantime. We rented on Wigan Lane for nine years. However, in January 2016, my husband sadly died and I was left in a precarious position, not knowing quite what to do.
“Peter, my son, had heard about Plumlife online and started looking into shared ownership. At the same time, I was struggling with the rent for my house and wanted a cheaper alternative. Peter noticed there were homes for sale at Pennington Wharf, a new shared ownership development in Leigh, which is just over two miles away. This seemed like the perfect solution, I’d be close to my family and live on a semi-rural scheme, close to countryside.
“I was concerned that because I’d been a homeowner I wouldn’t qualify for shared ownership, Plumlife explained that because I’d sold my home and was now renting I would be a good candidate.
“My route to home ownership took three months in total, which I was impressed with. It started after I made an appointment with Annette and went along for a viewing in late January.
“I immediately liked Pennington Wharf, the site was picturesque and it looked out onto green open spaces. I could see building work was underway at the proposed community centre and was told there were also plans for a marina and a cafe. The show home was bright, sunny and included lots of modern fitted appliances.
“Annette was really helpful and talked me through every step of the process. The two-bedroom house was priced at £135,000 and I paid £47,250 in cash towards it. As a shared ownership customer this meant I have a 35% share of my home. I pay a small monthly rent of £201 on the 65% share I don’t yet own.
“I would recommend shared ownership as a viable option for retired, single people of all ages. It’s been ideal for me as it’s so much more cost effective than renting a big house and it’s so convenient. I’ve now have a home of my own near my family and close to some wonderful walks.”
Plumlife is part of Great Places, a housing group in Manchester that provides affordable home ownership solutions to residents across the North.
