Out & About Summer 2018

Can Shared Ownership really help me onto the property ladder?

Jane Bosher Senior Branch Manager of Newbury Building Society’s Newbury branch

I’m looking to take the plunge and move out of my parents’ house. However, I’ll be doing it on my own which means my deposit will be much smaller, and I don’t want to rent. I’ve heard Shared Ownership is a good stepping stone, but , ¿QG WKH LGHD RI RZQLQJ DQG UHQWLQJ FRQIXVLQJ &DQ \RX KHOS" Rachel from Newbury

3. Homes are of high-quality and in highly desirable locations A mistaken public perception is that Shared Ownership homes may be badly maintained, poor quality and in less desirable areas. This is far from the truth. Properties available through the scheme can be found in sought-after areas, usually within high quality developments with a range RI KRXVH VL]HV 7KH TXDOLW\ DQG VSHFL¿FDWLRQ WKH KRXVHV provided by the development’s housebuilder will be the same, regardless of how they will be purchased. In fact, many Shared Ownership homes are new-builds. 4. You can make it your own because it is YOUR home Whether you want a library, a lime green lounge or art-deco wallpaper, Shared Ownership will give you the freedom to decorate how you like. The property is yours after all! Just GRQ¶W NQRFN GRZQ DQ\ ZDOOV ZLWKRXW SHUPLVVLRQ ¿UVW Good luck! If like Rachel, you would like to talk about how Shared 2ZQHUVKLS PLJKW EH WKH ULJKW ¿W IRU \RX SOHDVH FRQWDFW XV and arrange an appointment. We provide a tailored and LQGLYLGXDO VHUYLFH DQG RXU TXDOL¿HG PRUWJDJH DGYLVHUV DUH available for Saturday appointments. Visit our Newbury branch 105b Northbrook Street, Newbury, RG14 1AA, call us on 01635 522588 or email newbury@newbury.co.uk. YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Shared Ownership has been helping house-hunters for several years. In fact, it’s the industry’s forgotten knight in shining armour when it comes to providing high-quality affordable housing in desirable locations across the UK. However, it’s not surprising you’re looking for clarity about the scheme, and you’re not alone. A recent survey undertaken by YouGov on behalf of Aster Group discovered WKDW IRXU LQ SHRSOH GR QRW XQGHUVWDQG WKH EHQH¿WV RI Shared Ownership. To help determine if Shared Ownership is the right route for you, we have busted four of the most common misconceptions surrounding the Government backed, part buy/part rent scheme : 1. Shared Ownership is home ownership – not social housing Shared Ownership makes it possible to buy a property which otherwise would not have been affordable. The scheme allows purchasers to buy a share in a property and pay rent on the share they don’t own – normally you can purchase between 25% - 75% of the full purchase price. It is designed as a stepping stone for buyers to own their own home, allowing them to buy further shares in their property over time (which is called staircasing). 2. Paying a mortgage and rent is affordable The scheme is designed to keep both the initial and ongoing costs of home ownership manageable. For example, the monthly costs usual work out less than if you had purchased the home outright and at times, if you are privately renting. With Shared Ownership, you only require a mortgage deposit on the share you are purchasing, not the full value of the property. When (and if) you purchase further shares through staircasing, your rent will reduce accordingly.

Newbury Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number 206077). 6879

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