Spellman Financial Services

Guide to shared ownership coventry

Shared ownership coventry

Shared ownership can be a great way to get onto the property ladder.

And the good news is there are plenty of new developments offering Shared Ownership in Coventry.

There is a lot to consider before hand though and there may be better alternatives.

Check out the main pros and cons of Shared Ownership below. 

Benefits of Shared Ownership in Coventry

Provides and alternative: Shared Ownership gives you the opportunity to get on the property ladder when you otherwise may not have been able to.

Low Deposit: Enables you to get on the property ladder with a lower deposit.

Increase in investment: If your property goes up in value, so does the share of your home and your investment.

Ability to Staircase: It can be relatively straight forward to increase the share that your own. Known as Staircasing.

Ability to buy bigger: Enables you to buy a share of a larger property you otherwise wouldn’t be able to afford outright.

Disadvantages to Shared Ownership and things to consider

Cost: You will have to pay rent on the part you don’t own, service charge and ground rent, as well as your Mortgage repayments.

Problems selling: You may struggle to sell, if or when the day comes. The demand for Shared Ownership might not be as high in your area when compared to others.

Negative equity: There is a risk of negative equity. If the value of your home falls, so will the share you own. If your Mortgage ends up being more than the value of your share, then you will have lost the money you put in.

Buying smaller maybe better: If you can afford to purchase a smaller property outright. This may be a better option than purchasing a small share of a larger property.

Why use ourselves?

We can provide face to face advice to customers in Coventry & Warwickshire. Or a telephony/video call service if you prefer, for Local or National Customers.

Luke Spellman, the Mortgage Broker you will speak to, has over 10 years experience in Financial Services. 5 of which has been spent working directly with Mortgages.

 

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