Shared ownership can be a great option for buyers in West Drayton, a sought-after area with high property prices, as it can lower the deposit and mortgage requirements and make home ownership more accessible.
Shared ownership is a homeownership scheme that enables buyers to purchase a share of a property, usually between 25% and 75%, and pay rent on the remaining share. It’s designed to make homeownership more affordable for those who might otherwise struggle to get on the property ladder, such as first-time buyers. Additionally, shared ownership can offer the flexibility to increase ownership over time through a process called “staircasing,” allowing buyers to eventually own the property outright.
What is shared ownership
Shared ownership is a homeownership scheme that allows buyers to purchase a share of a property and pay rent on the remaining share. The buyer will typically own between 25% and 75% of the property, and the remaining share is owned by a housing association or developer. The buyer will then pay a mortgage on their share of the property and pay rent to the housing association or developer for the remaining share.
Advantages of shared ownership for first time buyers
One of the main advantages of shared ownership is that it can be more affordable than purchasing a property outright. This is because the deposit required for shared ownership can be lower than for a traditional purchase, usually starting at around 5% of the share being purchased. Similarly, the mortgage requirements can also be lower as buyers only need to secure a mortgage for the share they are purchasing, which can be significantly less than a traditional mortgage. This can make shared ownership a more accessible option for first-time buyers who may struggle to afford the deposit and mortgage requirements of a traditional purchase.
Another advantage of shared ownership is the flexibility it offers. As the buyer only owns a share of the property, they have the option to increase their ownership over time through a process called “staircasing.” This involves purchasing additional shares of the property when they can afford to do so. The more shares a buyer owns, the less rent they pay on the remaining share. This can eventually lead to the buyer owning the property outright. Staircasing can be a great option for buyers who are not yet able to afford a larger share of the property but want to get onto the property ladder and build equity in their home.
Why Choose West Drayton?
West Drayton is a great location for those looking to get onto the property ladder through shared ownership. Here are some reasons why:
1. Convenient location: West Drayton is located in the London Borough of Hillingdon, just 15 miles west of Central London. This means that residents can enjoy the benefits of living close to the capital without the high property prices. West Drayton is also close to Heathrow Airport, making it a great location for frequent travelers.
2. Excellent transportation links: West Drayton is well-connected to other parts of London and beyond. The town has its own railway station, which provides direct services to London Paddington in just 20 minutes. The town is also close to the M4 and M25 motorways, making it easy to travel by car.
3. Growing town: West Drayton is currently undergoing significant redevelopment, with plans to build new homes, shops, and leisure facilities. This means that there is potential for property values to increase in the future, making it a great location for buyers looking to invest in their first home.
4. Access to nature: Despite being located close to London, West Drayton is surrounded by green spaces. The town is located close to the Colne Valley Regional Park, which is home to a variety of wildlife and offers miles of walking and cycling routes.
5. Local amenities: West Drayton has a range of local amenities, including shops, restaurants, and pubs. The town also has a weekly market, where residents can buy fresh produce and other goods.
Overall, West Drayton offers the perfect balance between urban and suburban living. It’s a great location for those looking to get onto the property ladder through shared ownership, with excellent transportation links, access to nature, and potential for growth in the future.
Summary
Getting on the property ladder in West Drayton through shared ownership is a great option for those who are struggling to afford the deposit and mortgage requirements of a traditional purchase. Shared ownership offers lower deposit and mortgage requirements, making it a more accessible option for first-time buyers.
West Drayton is a convenient location with excellent transportation links, surrounded by green spaces, and undergoing significant redevelopment, making it a great location for buyers looking to invest in their first home. Shared ownership in West Drayton is an excellent opportunity for buyers to own a share of a property, build equity in their home, and eventually staircase to full ownership.
