“Buying a house is probably the most expensive purchase you will ever make and in these uncertain times it has certainly become more difficult for a lot of people”, says Conveyancing Executive Charlene Rimmer. Co-ownership schemes are an excellent way of getting your foot on the first rung of the property ladder, but make sure that you evaluate the advantages and disadvantages before going ahead.
Here are some of the benefits and pit-falls:
- Housing Associations will usually give you priority if you are on a low income
- It’s possible that you may need little or no deposit
- If you’re a tax-payer you may get relief on your mortgage • If the share you are buying is worth less than the lowest stamp duty threshold you will be exempt from paying this
- You can build up the share of the property until you own it outright
Potential pit-falls:
- You will have the responsibilities of a homeowner but the home does not fully belong to you
- You may have to ask permission from the Housing Association regarding redecoration or any home improvements
- Valuer’s fees are payable should you wish to increase your share in the property
- There may be restrictions if you wish to sell
- Even if you own your home outright you may still have to pay some service costs to the housing association
- If you purchase the share belonging to the housing association this could leave you with high repayments at the end of the loan period. Consider carefully the length of the repayment period for your first share, and then the share of the housing association.
We have offices in the Christchurch, New Milton and the New Forest. Our Conveyancing team also cover Bournemouth and Poole. For a free initial chat, please call 01202 499255 and Charlene or a member of the team will be happy to discuss any questions that you may have.
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