The shared ownership scheme is an excellent way for first-time buyers and home movers in Newcastle to step onto the property ladder without needing to purchase or take out a mortgage on the full value of the property.
This government initiative allows you to buy shares in a property in Newcastle, typically ranging between 25-75%, although in some cases, it can be as low as 10%.
The remaining percentage is paid as rent to the housing association or builder who owns that portion.
The terms of your agreement may allow you to buy additional shares in the future through a process called staircasing, eventually leading to full ownership.
Staircasing is optional, and market conditions or property value changes could affect your mortgage. A mortgage advisor in Newcastle can clarify this process during an appointment.
When seeking a shared ownership property in Newcastle, you need to meet specific criteria. Firstly, you must be over 18 years of age.
Your annual household income must not exceed £80,000, and you must demonstrate that you cannot afford the deposit or mortgage payments for the entire property.
The 5% deposit required only applies to the share you are purchasing, not the total property value.
Eligible applicants include first-time buyers in Newcastle, former homeowners unable to purchase again, those forming a new household, current shared ownership property owners looking to move, or existing homeowners unable to find a suitable property to meet their needs.
Your mortgage advisor in Newcastle can confirm your eligibility and discuss alternative schemes that may better suit your situation.
If you are already a homeowner in Newcastle, you must have a property that is “sold subject to contract” (STC) before proceeding with a shared ownership purchase.
Additionally, a memorandum of sale, detailing the agreed price and intention to sell, must be in place.
Shared ownership is also an option for those over 55 or with long-term disabilities, such as requiring a ground-floor home.
Members of the armed forces, current or former, are often given priority when applying for shared ownership properties in Newcastle.
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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.
During your appointment with the mortgage advisor, they will evaluate your income and expenditure to determine your eligibility for a Shared Ownership mortgage in Newcastle.
Our team will conduct a search of 1000 mortgage products to identify the most suitable option for you. We will also help you in obtaining a mortgage agreement in principle.
Once your purchase offer is accepted, we will submit your complete mortgage application and supporting documents to the lender.
Our service extends beyond simply securing the best mortgage deal for you. We also offer recommendations for insurance policies that will protect you and your loved ones.
As an experienced mortgage broker in Newcastle, we are able to help clients in all different kinds of mortgage scenarios. We are also able to help those looking to utilise the Help to Buy Shared Ownership scheme.
We have helped many applicants successfully complete their mortgage journey through Shared Ownership. Firstly, we will take a look at whether you qualify for the scheme, then if you get the green light, we can look at preparing your application.
Check out our fantastic customer reviews to see what others have thought of their experience. You may come across someone who has been in a similar situation to you.
Customer service is at the heart of our company, we want you to receive the best experience from start to finish. Our mortgage advisors in Newcastle will make sure that you feel comfortable and secure at all times.
Book your own appointment, it’s simple and easy to do! We have availability 7 days a week and appointments early in the morning or late evening.
Simply follow our ‘Get Started’ process to choose the date and time best for you.
We have 1000s of mortgage deals available on panel, featuring both high street and specialist deals. It is our job to pick out the perfect product for you that matches your personal and financial situation.
Our mortgage advisors in Newcastle know exactly what they are looking for, they have over 20 years of experience in the sector!
The First Homes scheme offers newly built properties in Newcastle at significant discounts for key workers and first-time buyers.
These discounts ensure affordability for future buyers when the property is resold.
Availability is limited and varies based on location, so exploring local options is advisable.
A lifetime ISA is a valuable savings tool for first-time buyers in Newcastle, offering up to £4,000 in annual contributions and a 25% government bonus.
Funds can be used for homes priced up to £450,000, provided the account has been active for at least 12 months.
The Right to Buy Scheme allows long-term council or housing association tenants in Newcastle to purchase their homes at discounted prices.
The discount often covers most of the deposit, making it easier to transition from renting to homeownership.
Restrictions may apply to early resale, particularly within the first five years of ownership.
For first-time buyers in Newcastle, 95% mortgages enable homeownership with just a 5% deposit.
This scheme provides an accessible route onto the property ladder, especially for those who can meet monthly mortgage payments but struggle with upfront costs.
Joint borrower, sole proprietor mortgages in Newcastle allow buyers to increase borrowing capacity by factoring in a supporter’s income during affordability checks.
The supporter is not named on the property deeds, reducing complications around ownership and tax considerations.
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