In the current market a good number of first time buyers and people on lower incomes are finding it difficult to secure a mortgage. Many are struggling to get their foot on the bottom rung of the property ladder, even when they find a property they fall in love with. However, a part-buy/part-rent or shared ownership scheme could provide an affordable solution to buying a new-build home in Scotland.
Shared ownership means the buyer purchases a share of between 25%- 75% of the new home and pays rent on the remaining amount, usually at around 80% of market value rental rates. The main benefit of this is that the a much smaller mortgage is needed to buy the share than would be required for full ownership, and any deposit required is also substantially reduced.
The buyer is free to increase the share of the property they own (known as ‘staircasing’) when they can afford to do so, making these schemes ideal for anyone who expects their salary to increase in the years to come. Such schemes are great not only to first time buyers purchasing a starter home, but also to families needing a larger home than they could normally afford to buy outright. There are numerous shared ownership schemes all over the country at the moment.
The 3 terraced homes at Netherton Road in Cowdenbeath are available from £28,750 for a 25% share, from Kingdom Housing Association
Kingdom Housing Association has a development of just three homes available under shared ownership on Netherton Road in Cowdenbeath in Fife. The three-bedroom terraced homes are currently under construction and are expected to be complete and ready to move into in June 2011. Prices here start at £115,000 for the mid-terrace home, and a 25% share could be purchased for just £28,750.
The Primary by Castlerock Edinvar boasts a collection of two-, three- and four-bedroom homes located on Harewood Road in the Duddingston area of Edinburgh, only five miles away from the city centre. A choice of apartments or townhouses is available at the development, many including private gardens. Prices at The Primary start from £24,750, which buys a 25% share of a £95,000 two-bedroom ground floor apartment complete with rear garden.
2-bed apartments priced at £117,000 on Langside Road in Glasgow are available in 25%, 50% or 75% shares from Southside Housing Association
Southside Housing Association is offering shared ownership properties on Langside Road in Crosshill, one of its new housing developments in Glasgow. These apartments comprise a living room, kitchen, two bedrooms and bathroom, making them perfect for first time buyers. The area is close to Queens Park and benefits from good local amenities and public transport links to Glasgow city centre. Buyers can purchase 25%, 50% or 75% shares in the two-bedroom apartments, which have a market price of £117,000.
Managed by the Port of Leith Housing Authority, The Quayside development has an attractive location at The Shore and many of the properties here enjoy uninterrupted views over The Water of Leith. A selection of 16 one- and two-bedroom apartments is available under the shared ownership scheme and an open-plan living/dining area and kitchen make them perfect for buyers looking for their first home. Prices at The Quayside start from £150,000, with 25%, 50% or 75% shares available.
by Maria Brett
Posted by mariabrett 
