Let’s start with Co-Ownership, another word that is mentioned when thinking or looking into buying your first home.
Here’s it explained….
In a nutshell Co-Ownership enables first time buyers who think they can’t afford a house purchase one. Co-Ownership is available to not only first time buyers but returning homeowners. Criteria is that you must not own a property / land at the time of application.
How does it work?
You can purchase a home as a co-owner up to the value of £190,000. Start with as much as you can afford, this starts at 50% and goes up to 90% of the value (don’t forget this includes the mortgage). You can increase your share of the home at any time in 5% amounts. Which in other words is known as ‘buying out’.
How does the renting part work?
You pay rent on the share of the property that Co-Ownership owns. You pay this on top of your arranged mortgage every month. An example of this is if you own 75% of the property, you pay rent on Co-Ownership’s 25%. The DFC also known as the Department for Communities sets the rent and any annual rental increases.
How does the buying part work?
You buy as much as the property as you can afford, and you are responsible for making the payments. It’s also your responsibility to arrange your own mortgage. It’s important to remember that Co-Ownership doesn’t ask for you for a property deposit but your mortgage lender probably will. It’s also good to factor in that you’ll be in charge of insurance, rates, repairs, maintenance and repairs.
How do I know if I am eligible?
You must be able to show:
• You can afford to make the payments involved in buying a property
• You don’t have an alternative, unassisted route to home ownership.
To find out more about this you can contact Co-Ownership by clicking here
How do I apply?
You can apply online to Co-Ownership, don’t forget you have to pay £100 fee to do this. Co-Ownership then assesses your financial circumstances to check if you’re eligible for co-owning your own home.
If you’re application is successful, Co-Ownership will ask you to upload info about the property that you want to co-own. You are responsible for paying £500 fee for the property serves and some of your legal fees.
If you want to find out more about Co-Ownership you can visit their website here
Hagan Homes do not offer financial advise.
