Shared ownership – what property buyers need to know from Latimer, the developer behind York’s The Cocoa Works

Buyers purchase the maximum share size they can afford (anywhere usually between 35 and 75 per cent with Latimer) and pay a subsidised rent on the remaining share. This means that buyers only require a smaller deposit and a much more affordable mortgage rate. Over time, this initial share size can be increased as many times as suits, a process known as staircasing.

The property can also be sold at any point, whether it’s owned outright, or rent is still being paid on the remaining share. Once shares are increased to 100% at a timing that matches a buyer’s lifestyle, the home is owned outright in full.

This makes shared ownership an affordable option for first-time buyers, but it’s not just for first timers, with those looking to move also eligible to buy under shared ownership as long as they have accepted an offer on the sale of their current home and meet the national criteria.

Ahead of Shared Ownership Week (18 – 24 September), Latimer (the developer behind The Cocoa Works in York, itself offering a high proportion of affordable properties with shared ownership) has compiled some key misconceptions about the process, along with advice for those looking to explore this option for the first time.

Researching the facts

New market research conducted by Latimer summarises current and reoccurring perceptions on shared ownership and getting on the property ladder.

Affordability Challenges: 11% of respondents questioned don't believe they will ever be able to afford a deposit for a mortgage with 39% believing it will take them over two years of saving to even get onto the property ladder.

Misunderstandings: 1 in 5 struggled to understand the core principle of shared ownership, with common misconceptions including beliefs that the remaining house share was being purchased by a government buyer or that they need to live with another party to reduce costs.

First-Time Buyers Only: Over half of respondents believe that shared ownership is for first-time buyers only and don’t realise shared ownership is available to those who currently own a property subject to it being sold.

Limited Awareness / Regional Disparity: 22% (just over 1 in 5) haven't heard of shared ownership, with awareness considerably lower in the North of England than the South.

Growing Interest: The number of respondents who feel shared ownership would be beneficial has jumped 59% in the last quarter.

These current perceptions highlight the need for clear and accessible information about shared ownership, dispelling any myths and help individuals make informed decisions about their housing choices.

Shared ownership mythbusting

With misconceptions surrounding shared ownership, Latimer, the development arm of Clarion Housing Group, has dispelled some of the myths and answered some of the public’s most frequently asked questions:

Myth: Shared ownership is the same as renting

Truth: Shared ownership is a homeownership model combining both buying and renting, allowing potential buyers to have a tangible investment in their property. The property isn’t owned in full initially, with rent being payable on the share owned by the developer and mortgage being paid on the owned share, with opportunity to buy a greater share of the property over time.

Myth: You will never own your home outright under shared ownership

Truth: This is true of some providers, but with Latimer you can increase your owned share all the way up to 100 per cent.

Myth: Shared ownership is only for low-income individuals

Truth: Shared ownership can be associated with affordable housing initiatives, however, it’s not exclusive to low-income individuals. Instead, it provides a flexible and affordable house purchasing option for many middle-income earners who may not be able to afford a full mortgage deposit. Those with a household income of up to £80,000 a year in Yorkshire are eligible.

Myth: You can't sell or move out of a shared ownership property

Truth: Buyers using the shared ownership model can sell their property at any moment and will simply sell their share.

Myth: You don't really own your home and have limited control over your property.

Truth: Buyers with Latimer have legal ownership rights on their share and can paint and decorate the property’s interior as they see fit, although structural changes will need permission from a landlord in order to obtain planning permission.

Myth: The government co-owns your home with you.

Truth: Shared ownership means you co-own your home with a housing association or developer and not the government.

Shared ownership at The Cocoa Works

Latimer offers a high proportion of affordable homes available through shared ownership, including at the Cocoa Works, the transformed former Rowntree’s factory on Haxby Road in York.

Buyers looking to make the move to Yorkshire and own a part of York’s history can do so with a deposit of just £3,550 for a one-bedroom apartment (based on a minimum 35% share).

The Cocoa Works also comes equipped with the same lower running costs featured in new-build homes thanks to its latest technologies, fixtures and fittings.

To learn more about The Cocoa Works, and the affordable routes to owning an apartment there, can visit thecocoa-works.com for more information, or call 01904 390301.