For those who are struggling to get on to the property ladder, some may find that lenders have become more stringent on loan amounts and lending criteria due to the recent challenges caused by Covid-19.
People may not be able to afford as much as they would have hoped for before Coronavirus. With various schemes available to would-be home owners, it can be confusing to work out which option is best for you.
SO Resi is the brand for Metropolitan Thames Valley’s shared ownership homes. It currently has modern, spacious shared ownership one and two bedroom apartments available at its latest new development; Forster Oaks in Stevenage. Esaiyas Mollallegn, head of marketing at SO Resi tells us the key ways shared ownership can help you secure the keys to a new-build home.
1. Can’t afford the mortgage on 100 per cent of a home? Buy a share of a property
Through shared ownership, you buy an initial share in a home which can be as little as 25 per cent but no more than 75 per cent. You then take out a mortgage to cover the rest of your share and pay rent on the share you do not own.
2. You don’t need to save for a full deposit
If the goal of saving for a deposit towards the mortgage on the full price a home is becoming more of an uphill battle, with shared ownership you just need a deposit of between 5-10 per cent of the share you buy, which is much lower than paying a deposit on the full price.
A further attractive quality of a shared ownership home is that they are often on new developments, so you get a brand new home with the benefit of a new-build warranty.
3. Increase the shares in your property
You can buy further shares in your home whenever you can afford to do so, until you own 100 per cent. “If you’d like to buy more shares of your home, you will need to get your home revalued, which entails a one-off fee. The additional shares you buy will be based on the property value at the time, rather than the price at the time of purchase. The minimum you can buy is an extra 10 per cent of your home’s full market value and you can buy bigger shares than that in multiples of 5 per cent,” said Esaiyas.
4. Not a first-time buyer? You may still be eligible
You’re eligible for a shared ownership apartment at SO Resi Forster Oaks if your annual household income is less than £80,000 and you don’t already own a property. Esaiyas said: “First-time buyers can apply, as well as people who may have owned a home in the past but can’t afford to buy one now, perhaps because of divorce, bereavement or financial difficulties. People may be ineligible on financial grounds; a financial assessment is carried out to make sure you can comfortably afford the mortgage and monthly payments to SO Resi, including service charges.”
Modern apartments combining the best of town and country
SO Resi Forster Oaks is in a leafy corner of Hertfordshire, combining the best of town and country.
The new development in Stevenage consists of high-quality one and two-bedroom apartments. The apartments are ready to move in to and feature generously sized open-plan living spaces and kitchens and either a Juliet or full balcony on some apartments.
Esaiyas said: “The apartments are exceptional value thanks to their high quality, modern design and close proximity to London; prices start from just £63,700 for a 35 per cent share (full market price £182,000) and only a 5 per cent deposit is required.”
Head over to soresi.co.uk to arrange a viewing or call SO Resi on 0208 607 0550 to find out more about Forster Oaks in Stevenage.
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