Types of Shared Ownership
Family Funded Shared Ownership
Key features:
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Funded by parents, a trust fund or another source related to the shared owner.
This fund cannot come from the shared owner because of benefit regulations. |
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This money is given to the housing association in the form of a loan. |
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The loan is covered by a loan agreement where: |
| a) |
No interest is paid to the lender on this loan |
| b) |
The loan is used by the housing association to buy its share and not the shared owner’s part. |
| c) |
The loan is repaid upon the sale of the property with a corresponding share of property valuation growth. |
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The parents, a trust fund or another source related to the shared owner provides the loan so the rents are subsided. |
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These schemes always have altered property leases so that major repairs and maintenance of the property is the responsibility of the housing association |
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These schemes offer most flexibility and affordability in terms of type and location of property as they do not require Housing Corporation funding. |
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The main drawback of the scheme is that a minimum investment of £30,000 is required depending on the purchase price of the property. |
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