April Mathieson, a 33-year-old teacher and mother, sought to enter the property market while staying close to her loved ones. Despite financial constraints in her desired location, she opted for shared ownership after her sister’s positive experience with the scheme. Shared ownership involves purchasing a percentage of a property and paying rent on the remainder, typically ranging from 25% to 75%.
In 2020, April bought her first shared ownership property with a 50% share in Preston, Lancashire. Within two years, she sold that property and fully owned a three-bedroom semi-detached house through staircasing. Despite sacrifices and financial planning, April successfully transitioned from 50% to 100% ownership.
April’s decision was influenced by her anticipation of salary increments, facilitating her ability to purchase additional shares. Staircasing costs are determined by market valuations, allowing gradual progression towards full ownership. April emphasized the role of increased income in her journey, highlighting the feasibility of adding shares over time.
Shared ownership, favored by 79% of users according to a West Brom Building Society survey, offers an initial step onto the property ladder and potential cost advantages compared to renting. However, renters should be aware of rising rent and service charges, alongside responsibilities for property maintenance.
Kelly McCabe, Managing Director at The Mortgage People, noted a growing trend of individuals turning to shared ownership post-major life changes. Despite common associations with first-time buyers, shared ownership caters to diverse circumstances, providing stability and long-term homeownership prospects.
For April, shared ownership was instrumental in returning to her hometown, fostering proximity to her support network. The scheme enabled her to secure a home in a desirable location, a feat unattainable through traditional market purchases. She praised the straightforward staircasing process with West Brom, emphasizing the convenience of remote transactions.
To qualify for shared ownership, individuals must have a household income under £80,000 or £90,000 in Greater London. These criteria consider the collective gross income of all mortgage applicants.
