Looking for shared ownership London property? At a time when mortgage lenders are being cautious, the shared equity approach is a method of getting on the London property ladder. Here, we take a look at the concept, where to find such homes and give you a rough idea of current prices.
How does shared ownership London property work?
In short, it offers first time buyers struggling to purchase a home the opportunity to do so without having to save a huge deposit. At present, the vast majority of mortgage lenders won’t lend any more than 90% of the total purchase price which has left many renters unable to buy.
Whilst the government has announced a new mortgage indemnity scheme aimed at first time buyers in this position, it’s only available on new build properties.
Basically, you part own and part rent your home. Schemes differ but in general you will be offered the option to buy a 25%, 50% or 75% share of the London property you intend to buy. Some housing associations will stipulate a minimum share that’s over 25%. You will pay rent on the remainder at an affordable rate. The larger the equity share, the lower the rent. The other share is owned by a housing association.
The idea is to gradually increase your share of the property until you own it outright.
Many shared ownership London properties are flats so do bear in mind that in addition to mortgage and rent you will be required to pay monthly service charges. Any estate agent worth their salt will have information on services charges to hand.
Am I eligible for shared ownership London property?
Although shared ownership London property is aimed at those who can’t afford to buy a home in any other way, most schemes are confined to first time buyers and those who live within certain areas. Priority is given to existing social tenants, serving military personnel and first time buyers.
There are also shared ownership London property schemes available for retired and disabled people.
Where can I find shared ownership London property?
The good news is that there are homes for sale under shared ownership schemes in all areas of the capital. Furthermore, London currently has the highest concentration of shared ownership properties in the UK. Housing associations advertise such properties through estate agents.
Here are some areas in which you will find shared ownership flats in London:
Tottenham Hale – De Havilland Court features 1 and 2-bed flats under the New Build HomeBuy scheme. The minimum share is 35% and prices start at £150k.
Limehouse, East London – CQ London is a new build development that will be situated close to the City and Canary Wharf. There will be 1, 2 and 3-bed luxury apartments available from £244,950.
Wembley – Forum House is centrally located and overlooks the arena. At time of writing, interested parties could take advantage of the opportunity to buy a 35% share of a 1-bed shared ownership London property for the reduced price of £66,500.
You may also want to look at Wisteria Apartments (E9), Sterling Green in Edgware and Charleston Apartments in Islington.
Related Property Searches