April Mathieson, a 33-year-old teacher and mother, decided to venture into the property market with the goal of residing close to her loved ones. Despite limited options in her desired location due to affordability constraints, April opted for shared ownership, inspired by her sister’s positive experience with the scheme. She purchased a 50% share of a property in Preston, Lancashire, through shared ownership, where she acquired a portion of the property and paid rent on the remaining share.
In 2020, April bought her first shared ownership property with a 50% share, later selling it within two years. She then proceeded to fully own her current three-bedroom semi-detached home through staircasing to 100%. April strategically planned for staircasing from the beginning, expecting her salary to increase over time, facilitating her progression to full ownership.
Staircasing involves purchasing additional shares in the shared ownership property based on independent market valuations at the time of purchase. April emphasized the impact of her rising salary on her ability to increase her share, noting a £7,000 deposit she paid to achieve full ownership within 18 months.
Shared ownership has proven beneficial for many, as evidenced by a survey by West Brom Building Society revealing that 79% of participants found shared ownership instrumental in entering the property market. Despite its advantages, shared ownership comes with considerations such as annual rent increases to the housing association, service charges, and sole responsibility for property maintenance.
Kelly McCabe, Managing Director at The Mortgage People, highlighted the increasing trend of individuals turning to shared ownership following significant life changes like divorce, downsizing, or income fluctuations. Shared ownership not only serves as a stepping stone for first-time buyers but also offers a sustainable homeownership solution providing stability and security in a challenging market.
For April, shared ownership enabled her to return to her hometown, fostering proximity to her support network. Without shared ownership, living in her preferred area would have been financially unattainable, emphasizing the life-changing impact of the scheme on her and her son’s daily routine.
To qualify for shared ownership, individuals must have a household income of £80,000 or less, or £90,000 or less in Greater London, considering the combined gross income of all mortgage holders. The process of staircasing for April with West Brom was seamless, involving a straightforward telephone inquiry and prompt appointments, showcasing the ease of progressing towards full ownership.