Shared Ownership

New Build HomeBuy is a good way of owning your own home on a part own, part rent basis.   This model is designed to get people onto the housing market who cannot afford to buy at current market prices.   First time buyers – single, couples or families.  These are people who are working and can raise a mortgage or have a lump sum to contribute.

Case study 1

Miss E and Mr J both work full time and between them have a household income of £26,000 per year.

They can afford a mortgage around £80,000. 

The price of a 2 bedroom house in their preferred area is £150,000

Magna West Somerset has a 2 bedroom house for shared ownership and this young couple can purchase a 40% share.

Open Market Value            £150,000

Mortgage required 40% =  £  60,000     £416.00 monthly payment*
Rent to MWS on 60%                           £150.00 monthly payment
Cost to Miss E/Mr J                               £566.00 monthly payment

* Indicative mortgage payments are based on a 7.0% repayment mortgage for comparison only

Case study 2

Mrs K currently lives in rented accommodation with her 2 daughters.  She has a part time job from which she earns about £8,000 a year.  However, due to the sale of a joint home she has a divorce settlement of £65,000.

Mrs K would like to buy a Magna West Somerset home for her and her daughters that is close to her daughters’ school.   The price of a 3 bedroom property in Mrs K’s preferred area is £160,000.

Mrs K can use the money from the settlement to purchase the 40% share in the house. 

Open Market Value              £160,000

Mortgage required 40% =   £64,000     no mortgage payments
Rent to MWS on 60%                          £160.00 monthly payment
Cost to Mrs K                                      £160.00 monthly payment

Equivalent private rent indicator  (per calendar month spring 2008)

                         2 bedroom  house        3 bedroom house

Taunton                 £600 pcm                       £675 pcm
Yeovil                     £575 pcm                       £625 pcm
Bridgwater              £550 pcm                       £600 pcm
Minehead                £575 pcm                       £650 pcm

The above examples give indicative prices. It is important that you obtain specific financial advice on your circumstances.

If you would like more information on shared ownership click here to go to our development company Charter (SW) Ltd