When it comes to buying a home, the average homebuyer is confronted with two main options - should I buy the traditional way, or use an affordable home ownership scheme? While Shared Ownership provides a more affordable route to the housing ladder, many are prepared to wait longer for the control offered by full home ownership. Ultimately, making the choice will depend on your financial circumstances and how quickly you want to move out.

Is Shared Ownership your best option, or is it worth the wait to buy your property through private sale? Check out our guide to make the best decision for you.

Affordability

Of the two options, Shared Ownership provides the more affordable route to home ownership. Shared Ownership works on the basis that you buy a smaller share of your property, while paying subsidised rent on the part owned by your housing provider. This results in a much smaller deposit than you’d put down for a private sale property, thus speeding up your home-buying timeline. Given that the rent you pay with Shared Ownership is also lower than the market rate, you’re looking at much lower monthly costs than a private sale property.

 

Flexibility

When it comes to buying your apartment, Shared Ownership is the best option for flexibility. As long as you are able to buy a minimum share of 20%, you can buy any share of the home that you please, from 50% to a more audacious 75%. Given that the share you own impacts the rent you pay, you might also be tempted by the option to ‘staircase’ and buy additional shares over time.

However, private sale does offer you more flexibility with the properties you go for. While most Shared Ownership homes are new build properties, private sale gives you the freedom to pick from any home on the market - should your budget allow it, that is.

Responsibility for Maintenance

If you buy a Shared Ownership home with a housing provider, you can enjoy the benefits of home ownership without taking responsibility for its maintenance. Your housing provider will take responsibility for any repairs or fixes, which are covered by the service charges you pay monthly. This means you’ll get peace of mind to enjoy the lifestyle you deserve.

Buy a home through private sale, and you’ll be expected to look after your property yourself. So if you’re not gifted at DIY, you may have to splash the cash on a repairman from time to time.

 

Resale

After a few years, there may come a day when you fancy a change of scenery with a new home. While a private sale property can easily be sold on the open market, there are a few more hurdles involved with selling a Shared Ownership home. If you only own a small share of your home, you’ll need to find someone who meets all of the Shared Ownership eligibility requirements. For example, the buyer should not already own a home, and should not be able to buy a home on the open market. However, if you own 100% of your Shared Ownership home, selling your home will be much more straightforward.

Control

Given that you only own a part of your property, there is a limit to how much you can do with a Shared Ownership home. While you are free to decorate your home as you wish, you are prohibited from making any major renovations to your home without permission from your housing provider. If you’ve always dreamed of having a gorgeous conservatory, you may have to wait until you own 100% of your home.

With private sale, there’s no limit to what you can do with your home. You can make any changes, sell it on the open market or even rent it out if you wish - the world is your oyster.