April Mathieson, a 33-year-old teacher and mother, embarked on the journey of homeownership with a desire to reside closer to her loved ones. Limited by her budget, she opted for shared ownership, inspired by her sister’s positive experience with the scheme. Through shared ownership, individuals purchase a portion of a property and pay rent for the remainder, typically ranging from 25% to 75%.
In 2020, April acquired a 50% share of a property in Preston, Lancashire, before selling it two years later and fully owning her current three-bedroom semi-detached home. April strategically utilized staircasing, gradually increasing her ownership percentage, driven by the anticipation of her salary growth.
Reflecting on her journey, April highlighted the importance of financial planning and making sacrifices to achieve her homeownership goals. She emphasized the ease of the staircasing process and the support provided by institutions like West Brom Building Society.
Shared ownership, as indicated by a survey by West Brom Building Society, has empowered many individuals to enter the property market. Despite its benefits, shared ownership entails considerations such as annual rent increases, service charges, and responsibility for property maintenance.
Kelly McCabe, Managing Director at The Mortgage People, noted a growing trend of individuals turning to shared ownership during significant life changes. Shared ownership serves as a feasible pathway to homeownership, offering stability and security in today’s challenging housing market.
For April, shared ownership not only enabled her to return to her childhood village but also provided a sense of community and support from her extended family. The process was streamlined and accessible, allowing her to fulfill her dream of owning a home in a desirable location.
To qualify for shared ownership, individuals must meet income thresholds, with a maximum household income of £80,000 (or £90,000 in Greater London). Shared ownership presents a viable housing solution for a diverse range of individuals, offering a sustainable path to homeownership in a competitive real estate landscape.