If you are ready to get on the property ladder affordable housing in London is a great way to take those first steps. As any homeowner will tell you, buying property can be a struggle financially. It is reassuring to know that there is help available for first time buyers who can’t afford to buy a property outright in the open market.
Affordable home purchase schemes have helped thousands of people get on the property ladder. So if the idea of affordable housing in London appeals, there is property out there for most incomes.
Affordable housing (also known as shared ownership) is a great way to get on the property ladder. It is a popular scheme for young professionals, couples and families. Here’s how it works – affordable housing schemes in London allow people to purchase a share in a new home. They then pay a subsidised rent to the Housing Association on the remaining share. These homes are bought on a leasehold basis, which normally lasts for 125 years.
The share that you purchase will be anything from 25-75% and this is determined by what you can afford and what the seller is offering. An extra incentive of affordable housing in London is that additional shares in the property can be bought at any time if your financial circumstances change. So over time, if you budget well, you can slowly start to own more and more of the property.
Although there are many different schemes for affordable housing in London, in general your eligibility is determined by the following requirements:
1. The buyers’ income must be below £66,000 for one and two bedroom homes and below £80,000 for three bedroom homes
2. Have a minimum deposit of 5% of the share being purchased
3. Be in full-employment or show three years audited accounts of self-employed
4. British, EU or EEA Citizenship
5. £5,000 for legal fees, mortgage arrangements and stamp duty.
You can find out more affordable housing in London by visiting the GOV.UK website. And take a look at our superb collection of affordable housing in London here.