Shared Ownership in Newcastle

The share you purchase will depend on your affordability and the terms set by the housing association or builder in Newcastle.

Typically, shares range between 25-75% of the property value, though sometimes as low as 10%.

A deposit of 5% is required for the share you are buying. For instance, purchasing 50% of a £100,000 property would require a deposit of £2,500.

Agreements usually allow further share purchases later, giving you the opportunity to increase your ownership over time.

The option to staircase and purchase additional shares often depends on the terms of your initial agreement.

If this isn’t clearly specified, the process could become challenging. Seeking advice from a mortgage advisor in Newcastle ensures you fully understand your rights and options.

While shared ownership in Newcastle involves sharing the property with the housing association or builder, you are free to take out a joint mortgage with another individual, such as a friend or partner.

This does not affect your eligibility or terms of the shared ownership arrangement.

Sharing a mortgage with someone else can help improve affordability, potentially allowing you to purchase a larger share of the property initially.

Your advisor can explain how affordability checks work in joint applications.

Selling a shared ownership property in Newcastle can be complex. To sell outright, you must own 100% of the property.

If not, you must notify the housing association or builder, who has the first refusal to repurchase or find another buyer within a specified timeframe.

If the housing association or builder does not act within this timeframe, you can list the property on the open market.

A “designated protected area” lease might require the landlord to buy it back or find their buyer themselves, regardless of your preference.

Selling a shared ownership property also involves standard processes like arranging valuations and EPCs, as well as securing a buyer.

The added steps for shared ownership may take extra time, so planning ahead is vital.

Beyond mortgage and rent payments, shared ownership properties in Newcastle may include costs such as service charges, maintenance fees, and potentially ground rent.

These charges depend on the terms outlined when you purchased your share and typically adjust yearly based on maintenance needs.

Service charges often cover communal upkeep like cleaning, gardening, or repairs.

Landlords are required to provide audited accounts to explain any changes to charges, giving you clarity about upcoming expenses.

Other costs, such as council tax, utilities, and contents insurance, remain your responsibility.

Factoring in solicitors’ fees and other purchasing costs is equally important.

Your mortgage broker in Newcastle can help you plan financially for these commitments.

As a part-owner in Newcastle, you may be able to make home improvements, but permission is generally required from the landlord for significant changes.

Enhancing the property can add value, potentially affecting future staircasing costs.

For example, upgrading a kitchen or adding a conservatory could increase the valuation, impacting the cost of purchasing additional shares.

Understanding how these changes affect your agreement is essential, and a mortgage advisor can offer insights tailored to your circumstances.

If you face difficulty keeping up with mortgage or rent payments on a shared ownership property in Newcastle, contacting your lender or landlord immediately is crucial.

Solutions such as temporary payment plans may be offered to help you through challenging times.

Allowing debts to accumulate can lead to more significant issues, including potential repossession of the property.

Both lenders and landlords prefer to work collaboratively to avoid this outcome, as it saves time and money for all parties involved.

Remortgaging a shared ownership property in Newcastle can provide opportunities to secure a better interest rate, purchase additional shares, or release equity.

That said, the process is more complex than standard remortgaging.

Understanding the terms of your agreement and exploring your options with a mortgage advisor ensures the process goes smoothly.

Professional advice can help you decide whether remortgaging aligns with your financial goals.

As a shared ownership homeowner in Newcastle, you are typically responsible for repairs to your property.

Communal areas and external maintenance are often covered by service charges.

These charges may fluctuate annually, depending on the extent of work required.

Checking your lease agreement or speaking to your landlord helps clarify your responsibilities.

Lease extensions on shared ownership properties in Newcastle are generally possible.

Costs can vary, but extending the lease before it drops below 80 years is often more cost-effective, as fees increase significantly beyond this point.

It is possible to secure a shared ownership property in Newcastle with a history of bad credit.

You may need a larger deposit, and higher interest rates might apply, but mortgage options exist.

Discussing your circumstances with an advisor can help identify potential solutions, such as smaller shares or gifted deposits to enhance affordability.