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For first-time buyers and home movers in Cambridge, the shared ownership scheme offers an affordable way to step onto the property ladder without needing a mortgage for the full property value.
This government-backed initiative allows you to purchase a share of a property, typically between 25-75%, though h in some cases, you can start with as little as 10%.
You’ll then pay rent on the remaining share, usually owned by a housing association or property developer in Cambridge.
The arrangement with the property owner includes an option called “staircasing,” which allows you to gradually buy more shares over time until you own the property outright.
This is completely optional and depends on your financial situation and the market conditions. Sometimes, a further advance on your mortgage might help you staircase further.
A mortgage advisor in Cambridge can guide you through how staircasing works and explore the best options for your circumstances.
If you’re considering a shared ownership mortgage in Cambridge, it’s important to understand the eligibility criteria. Firstly, applicants must be over 18.
Your annual household income should not exceed £80,000, and you must be unable to afford the full deposit or mortgage payments on the total property value.
To qualify, you should fall into one of the following categories: a first-time buyer in Cambridge, a previous homeowner who can no longer afford a new property, forming a new household, currently owning a shared ownership property and looking to move, or an existing homeowner who can’t afford to move to a suitable new home.
During a free appointment with a mortgage advisor in Cambridge, they can help assess whether shared ownership suits your needs or suggest alternative schemes that might be a better fit.
If you already own a home in Cambridge, you’ll need to have a ‘sold subject to contract’ (STC) status, which indicates an accepted offer on your property.
Additionally, you’ll require a ‘memorandum of sale,’ confirming the sale price and your commitment to sell.
Completion of your current property’s sale is necessary before you can finalise a shared ownership purchase in Cambridge.
Shared ownership in Cambridge is also an option for those over 55, as there are various mortgage products available for older buyers.
This scheme can be particularly beneficial for meeting specific needs, such as securing a ground-floor home for long-term disability requirements.
Moreover, current and former members of the armed forces may receive priority when applying for shared ownership properties in Cambridge, depending on their role.
The percentage you can buy under shared ownership in Cambridge varies based on your budget and the terms set by the housing association or developer.
Typically, you can purchase between 25-75% of the property value, though in some cases, it can start as low as 10%.
Instead of buying your full share outright, you’ll need a 5% deposit of the share you intend to purchase.
For example, if a property in Cambridge is valued at £100,000 and you wish to buy 50%, your deposit would be 5% of £50,000, equating to £2,500.
You usually have the option to buy additional shares later on, known as staircasing, which should be detailed in your agreement.
If your current arrangement doesn’t include this option, it might complicate matters, but a mortgage advisor in Cambridge can help you explore your possibilities.
Shared ownership in Cambridge means you’ll share ownership of the property with a housing association or builder, as you only take out a mortgage on your purchased percentage.
The remaining share is retained by the other party. If you wish, you can take out a shared ownership mortgage with someone else, such as a partner or friend, as there are no restrictions on having a joint mortgage under this scheme.
If you decide to sell your shared ownership property in Cambridge, the process can be a bit complex.
To sell outright, you generally need to own 100% of the property. If you don’t own the full property, you’ll need to inform your housing association or builder of your intention to sell.
They typically have the first right of refusal, meaning they can choose to buy your share back or find another buyer before it’s listed on the open market. If they don’t act within the set timeframe, you may then proceed to market the property yourself.
Be aware that the type of lease you hold might also influence the selling process, particularly if it includes specific clauses like a “designated protected area – mandatory buyback” lease, which obligates the landlord to manage the sale.
Selling typically involves several steps, including getting a valuation, obtaining an EPC, and finding a buyer, before completing the sale.
Beyond your mortgage and rent payments on your shared ownership home in Cambridge, other costs may apply, such as service charges, maintenance fees, and potentially ground rent.
These fees are typically set by your landlord at the time of purchase and can vary depending on the proportion of the property you own. Service charges, for instance, may change annually based on factors like maintenance or gardening services.
Your housing association should provide audited accounts to outline these costs and any adjustments for the upcoming year. General utility bills, contents insurance, and council tax remain your responsibility.
Solicitors’ fees may also apply, and a mortgage advisor in Cambridge can walk you through these expenses in detail. For specifics on Stamp Duty Land Tax for first-time buyers, consider speaking to a tax professional or visiting the Share to Buy website.
As a shared owner in Cambridge, you may be able to make home improvements, but you’ll generally need permission from your landlord before undertaking significant changes.
Keep in mind that any enhancements could increase the property’s value, potentially affecting the costs if you decide to buy more shares in the future. Your mortgage advisor in Cambridge can explain the details and implications of home improvements during your appointment.
If you’re struggling to keep up with your mortgage or rent payments on your shared ownership home in Cambridge, it’s crucial to contact your mortgage lender and landlord (housing association or builder) as soon as possible.
They may offer solutions like a payment plan or financial advice to help you get back on track. Missing payments could lead to arrears and eventually repossession, but both parties typically prefer to find a resolution rather than proceed with repossession
It’s always better to collaborate and address issues early on.
Remortgaging a shared ownership property in Cambridge can be more complex than standard remortgaging, but it’s still possible.
You may be able to secure a better interest rate on your current share, buy additional shares, or release equity through a remortgage.
Due to the complexities involved, speaking with a mortgage broker in Cambridge is highly recommended to help you navigate the process and make informed decisions.
As a shared owner in Cambridge, you’ll generally be responsible for repairs and maintenance of your property, although some costs related to communal areas or external maintenance may be covered by your service charges.
These costs can fluctuate annually based on the work carried out by your landlord, so check your lease or speak with your landlord for specific details.
If you own a shared ownership property in Cambridge, you typically have the right to extend the lease. Costs can vary, and it’s often more economical to extend before the remaining lease drops below 80 years.
It is possible to get a shared ownership mortgage in Cambridge even with bad credit, though you might need a larger deposit and may face higher interest rates.
Given the affordable nature of shared ownership, a higher deposit can be challenging, but options like buying a smaller share or using a gifted deposit could help.
A mortgage advisor in Cambridge can discuss these options and guide you through your application.
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When considering a shared ownership mortgage in Cambridge, your mortgage advisor will carefully review your income and expenses to determine both your eligibility and how much you can afford to borrow. This personalised assessment helps ensure that you can comfortably manage your mortgage payments alongside your other financial commitments.
Our team of mortgage advisors in Cambridge will explore a wide range of mortgage options to pinpoint the one that best fits your needs. By comparing various products from different lenders, we aim to find the most suitable mortgage deal that aligns with your financial situation and goals.
Once your purchase offer has been accepted, we’ll handle the next steps by submitting your full mortgage application and all necessary documents to the lender. Our goal is to streamline the process and keep things moving smoothly, so you can focus on the exciting steps of buying your new home in Cambridge.
Our service goes further than just finding the best mortgage rates. We also offer advice on insurance options to safeguard you and your loved ones, ensuring that you’re protected against unexpected events. From life insurance to critical illness cover, we’ll help you explore policies that provide peace of mind alongside your new home.
In Cambridge, your mortgage advisor will assess your income and expenses to determine if you qualify for a shared ownership mortgage. This evaluation also includes checking how much you can afford to borrow, ensuring your mortgage fits comfortably within your budget.
Our dedicated team in Cambridge will review a broad selection of mortgage products to find the one that best meets your needs. By comparing various options, we aim to secure the most suitable mortgage deal that aligns with your financial circumstances and homeownership goals.
After your offer on a property in Cambridge is accepted, we’ll take care of submitting your mortgage application along with all required documents to the lender. Our goal is to make this part of the process as seamless as possible, allowing you to focus on your upcoming move.
Our support doesn’t stop at finding the right mortgage deal. We also provide advice on insurance options that can protect you and your family. Whether it's life insurance, income protection, or other types of cover, we’ll help you choose policies that offer peace of mind alongside your new home.
If you’re a first-time buyer or a key worker such as a teacher or nurse living in Cambridge, you might be eligible for the First Homes Scheme.
This scheme offers newly built properties at a significant discount from the market price, making homeownership more affordable.
Discounts start at 30% and can go up to 50%, with the aim of providing a permanent reduction, ensuring the home remains affordable for future buyers as well.
Availability is limited and depends on your local area, so options can vary.
A Lifetime ISA is a savings account designed for those aged 18-39, helping them save for their first home or retirement.
You can contribute up to £4,000 per year, and the government adds a 25% bonus on top, up to £1,000 annually.
The funds, including the government bonus, can be used to purchase a home priced up to £450,000 (as of 2024).
Your account needs to be open for at least 12 months before you can use it to buy a home.
While there are penalties for early withdrawals for non-home purchase reasons, this is a valuable tool for those looking to get onto the property ladder with a government boost.
The Right to Buy scheme offers a fantastic opportunity for council or housing association tenants in Cambridge to purchase their homes at a discount, potentially without needing a deposit, as the discount often covers these initial costs.
The amount of discount you receive can be substantial and is typically based on the length of time you’ve been a tenant.
It’s a great pathway for long-term renters to transition into homeowners. Keep in mind, however, if you decide to sell your property within the first five years of ownership, you may be required to repay some or all of the discount.
For first-time buyers in Cambridge who are finding it difficult to save for a deposit but can handle monthly mortgage payments, 95% mortgages could be a viable solution.
With these mortgages, you only need to save (or receive as a gift) 5% of the property’s price as a deposit.
This scheme is often promoted by the government to make homeownership more accessible to first-time buyers across Cambridge and the UK.
Joint borrower, sole proprietor mortgages in Cambridge allow a family member or friend to join the mortgage without being listed on the property deeds.
This setup can help you qualify for a larger mortgage, as the additional income from the supporting borrower is considered in the affordability checks.
Importantly, since the joint borrower is not on the property deeds, Stamp Duty Land Tax is typically treated as though you were a sole first-time buyer.
It’s advisable to speak with a tax advisor to fully understand the implications of this arrangement.
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Cambridgemoneyman.com & Cambridgemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Cambridgemoneyman.com & Cambridgemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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