For first time buyers, growing families and individuals looking to move to cities, one important question comes up time and time again: is Shared Ownership worth it? 

While not a brand-new model of getting onto the property ladder, Shared Ownership is still relatively fresh in the UK. This leads to questions around the pros and cons of Shared Ownership, and whether this kind of approach is right for you. 

Let’s take a look at the advantages of Shared Ownership, as well as additional factors that could play into your decision to purchase a Shared Ownership home.

The pros of Shared Ownership 

There are a number of reasons why so many first-time buyers in the UK have decided to opt for Shared Ownership. These include: 

• Affordability
• Flexibility in pricing
• Brand-new homes
• Ongoing support

Shared Ownership is affordable

When it comes to asking whether Shared Ownership is worth it, one of the key factors that sway individuals is how much more affordable it can be than renting privately. 

This is because the rent and fees associated with Shared Ownership homes are calculated based on the share you own, rather than the full value of a property. The same can be said for your initial deposit, which is often much lower than a standard deposit used to buy on the open market. 

Adjust your share on your own terms

Because your rent is calculated based on the number of shares owned by the management company (such as Legal & General Affordable Homes), you can reduce the amount you need to pay by increasing your share through staircasing. 

We typically calculate rent at a rate of 2.75%, so if you own a larger share of your home, the rent calculation will be reduced. Using this process, you can incrementally raise your share to 100% – eliminating the need to pay rent entirely! 

A stunning selection of brand-new homes and apartments

One of the main pros of Shared Ownership is the quality of the properties themselves. Not only are Shared Ownership homes available across the country, but they come in all shapes and sizes to suit your specific requirements. 

This includes: 

• One-bedroom apartments for busy city living 
• Two-bedroom flats to split the costs with friends and family
• Three- and four-bedroom family homes in safe, secure areas

Ongoing support and guidance from the Shared Ownership experts 

When beginning your Shared Ownership journey with Legal & General Affordable Homes, you’ll receive consistent support that keeps you informed of everything you need to know about your brand-new home. 

From understanding Shared Ownership mortgages, to busting common myths associated with the model, we’re here to support you every step of the way. If you have any specific questions on whether Shared Ownership is right for you, reach out to our friendly team to learn more. 

Cons of Shared Ownership

While Shared Ownership is an affordable, approachable way to get on the property ladder, there may be reasons why it just isn’t the right fit for you. These could include: 

• Financial requirements for items like contents insurance 
• Restrictions on sub-letting and leasing
• A more limited pool of properties than on the open market

Extra cash needed for processes and fees

As with any home purchase, Shared Ownership brings several fees and financial commitments that you won’t find when privately renting. These include legal conveyancing fees, contents insurance costs, and any ongoing property maintenance costs. 

However, while the initial charges may be higher than you’d find in rented properties, the long-term costs often work out much cheaper than paying rent to a private landlord. 

You cannot sub-let our Shared Ownership homes

Some buyers purchase a new home with the express intention of renting it out to somebody else for profit. Alternatively, they might rent a private property and sub-let to another tenant in order to cover the costs. 

Because Shared Ownership is designed in part to help first-time buyers get on the property ladder, this option is not available with our homes. This is worth considering if your financial goals involve sub-letting a portfolio of properties. 

Only a selection of brand-new homes are available

One of the best things that first-time buyers can do when looking for a new home is to search as widely as possible. There are lots of properties out there, and finding the perfect option for your needs involves lots of research. 

Technically, this means that Shared Ownership homes are more limited options than those on the open market. Not all homes will be available through the Shared Ownership scheme, and you may discover a new build home that you love – only to discover that it’s just out of your price range, due to requiring a hefty deposit.

Think that Shared Ownership is for you? 

If you’ve weighed up the pros and cons of Shared Ownership and think that this could be the ideal path for you to secure a home, you’re in the right place. Take a look at our wide range of Shared Ownership properties available now, and get in touch with our team of experts if you have any further questions.