Shared Ownership in Manchester

The exact percentage will be different depending on what you can afford. The terms set by the housing association or builder in Manchester will also apply to this.

As a general guide, you will typically have the option of purchasing between 25-75% of the property value, though in some cases you may be allowed to purchase as low as 10%.

You will not be purchasing the full amount of your percentage in one go. Instead, you will need a deposit of 5% of the percentage you want to buy.

So if you have a property worth £100,000 and you’re looking to buy 50% of the property in Manchester, it would be 5% of £50,000, meaning you would need a deposit of £2,500.

You should have the option to purchase further shares at a later date and typically it will need to be stated in your agreement.

In the event this isn’t the case, a shared ownership mortgage may be a little more challenging, though your mortgage advisor in Manchester will be able to look at this with you.

No, the term Shared Ownership in Manchester refers to the fact you are sharing ownership of the property with the housing association or builder.

This is because you will only be taking out a mortgage on a percentage of the property, with the remaining percentage still being owned by the other party.

That being said, you will be able to take out a shared ownership mortgage with someone else in Manchester, be that a friend or a partner. There are no restrictions on your ability to take out a joint mortgage.

If you are looking to sell your Shared Ownership home in Manchester, it can be a little tricky. As a standard rule of thumb, you will need to own 100% of the property to just outright sell the property.

On the other hand, if you do not yet own 100% of the property, you will need to inform your housing association or builder in Manchester (of whom you are paying rent) that this is something you would like to do.

At this point, they will have first refusal. This means before it is advertised on the open market, they have the legal right to either buy the property back from you or find another shared ownership buyer themselves.

There will be a timeframe for this and if they fail to do so within that timeframe, you may be able to then take your Manchester property to the open market and begin the process of finding a buyer yourself.

The type of lease you have may also have an impact on your ability to sell the property. If when purchasing a property under Shared Ownership in Manchester it had a “designated protected area – mandatory buyback” lease, it is entirely up to the landlord (your housing association or builder in Manchester) to buy this back from you or find their buyer.

Typically, if you are selling a property under Shared Ownership in Manchester yourself, the process can include getting a property valuation, getting an EPC (energy performance certificate), arranging for someone to take photos of the property, finding a buyer and then finally completing the sale.

Yes, with Shared Ownership in Manchester, you can increase the percentage of the property you own over time through a process called staircasing.

This allows you to gradually buy more shares of your home, which can reduce the rent you pay on the remaining share

The option to staircase can be flexible, and you can eventually own 100% of the property, depending on the terms of your agreement.

Speak to one of our mortgage advisors in Manchester to understand how this works and what it might mean for your mortgage.

As you staircase and buy more shares in your Shared Ownership property in Manchester, your rent will decrease proportionally.

However, your mortgage may need adjusting to reflect the higher ownership percentage.

Speak to a mortgage broker in Manchester like us to understand how these changes might affect your payments.

Not all properties are eligible for Shared Ownership in Manchester. The scheme typically applies to new-build homes or resale properties from housing associations.

Additionally, the home must meet certain affordability criteria, ensuring it remains within reach of lower-income buyers.

A mortgage advisor in Manchester can help you understand which properties qualify under the scheme.

Along with the base costs of your mortgage (on the percentage you agreed to buy) and rent to the landlord (on the remaining percentage), Shared Ownership in Manchester may see other costs.

These include service charges, maintenance fees and possibly even ground rent. This will entirely depend on the terms set by your landlord during the initial purchase and how much of the property you own.

Service charges typically are annual and can both increase or decrease. Prices are typically adjusted depending on things like cleaning, general maintenance or any gardening that has taken place.

Your housing association will be able to give you a copy of audited accounts to explain this clearly and concisely, informing you of any changes ahead of the year coming up.

Costs such as general utility bills, contents insurance, council tax and others of that nature, will be your responsibility.

In addition to these, you may also have to factor in solicitors fees. Your mortgage advisor in Manchester will be able to run through these with you and explain in more detail what to expect.

For information regarding Stamp Duty Land Tax as a first time buyer in Manchester looking at shared ownership, please speak to someone qualified to advise on tax. Alternatively, you can visit the Share to Buy website.

With Shared Ownership in Manchester, the deposit is based on the percentage of the property you’re purchasing, not the full value.

Typically, you’ll need at least 5% of the share you’re buying, making this scheme more accessible for first-time buyers or those with a limited deposit.

As a part property owner under Shared Ownership in Manchester, home renovations may be something you can look at, however, much akin to standard renting, you would usually need to gain permission from your landlord before making any significant alterations to the property.

It’s also important to remember that doing so can see the property increasing in value. This could have an impact on the price of the property and subsequently, the costs of your mortgage, if you were looking to purchase more shares at a later date.

A mortgage advisor in Manchester will be able to explain how this works to you in more detail during your free mortgage appointment, as it can get quite complicated.

Whether you’re purchasing under Shared Ownership in Manchester or not, it’s crucial to contact your mortgage lender (and in this case, your landlord; housing association or builder) as soon as possible if you’re struggling to keep up with your mortgage payments.

You can also seek mortgage advice in Manchester to explore potential solutions. This applies if you’re having trouble with rent and service charges too.

Solutions like payment plans or financial advice may be available. If payments are missed and debt builds up with the mortgage lender or landlord in Manchester, your property could be repossessed.

Both parties will prefer to work with you to avoid repossession, as it saves time and money for everyone involved.

Yes, although the process of a remortgage in Manchester when you have a Shared Ownership property can be quite complicated due to the nature of your property type.

You may be able to remortgage for a better interest rate on the percentage you own. You also may be able to purchase additional shares through a remortgage in Manchester. Additionally, releasing equity may be an option for you.

We would highly recommend speaking with a mortgage broker in Manchester regarding your plans for a remortgage on a Shared Ownership property, as it can be difficult to undertake without taking advice.

Repairs and maintenance will typically be your responsibility, though it’s important to refer to your lease or speak to your landlord to check the specifics of this.

You will likely contribute to external and communal area maintenance through your service charges, with these costs increasing and decreasing (usually annually) with amendments made by the landlord, depending on various factors such as what work they carried out throughout the year.

You will usually have the right to extend the lease of a property that you have bought using Shared Ownership in Manchester.

The costs of doing so can vary and it’s often more cost-effective to do so before the remaining lease term falls below the 80-year mark.

Whilst you may have limited options in this case, yes, you may be able to obtain a mortgage on a property under Shared Ownership in Manchester with bad credit.

You may need to put down a larger deposit and may face higher interest rates to access a mortgage with bad credit.

Of course, because Shared Ownership in Manchester is an affordable home scheme, it may be that a higher deposit on the percentage you were looking to buy may be difficult.

A possible solution for this scenario could be to either purchase a smaller percentage. Alternatively, a gifted deposit could be an option to help top up what you can initially put down.