Shared Ownership Macclesfield

About Macclesfield

If you’re considering a shared ownership property in Macclesfield, it’s important to know about where you plan to live and sometimes the history behind it too. For anyone wanting to learn more about Macclesfield, hopefully the following information is interesting.

Macclesfield, Cheshire is a market town, where both the main and side streets are lined with high quality shops, superb restaurants and all the services you would expect.

Macclesfield is just a short drive from the heart of the Peak District and the city of Manchester – one of the UK’s most exciting cities to live and work in.

The town is located on the river Bollin and has a population of around 60,000 people although this of course changes. Macclesfield is known for its silk industry, and its history as a market town. The town also has a number of notable buildings, including the Grade I listed St Michael’s Church.

A person from Macclesfield is sometimes referred to as a Maxonian. Macclesfield is most famous for its silk industry. The town’s origins are unclear, although there is evidence of Celtic and Roman settlement in the area.

By the 13th century, it was a market town, and it grew rapidly in the Industrial Revolution of the 19th century. It became a municipal borough in 1866 and a county borough in 1889. Since 1974, it has been part of the Cheshire East unitary authority.

The town’s silk industry began in the 17th century, when Flemish Protestant refugees fleeing religious persecution in Europe settled in the town. The industry grew rapidly in the 18th and 19th centuries, peaking in the early 20th century. At its height, there were more than fifty silk mills in the town.

What is shared ownership property and how does the mortgage work?

A shared ownership property is where you buy a certain percentage of the property and pay rent on the other part. The remainder of the property that you do not own will belong to a local authority or housing association.

For example, if you have seen a property in Macclesfield being sold by a housing authority and the full value is £200,000 but the share for sale is 40%, this would mean that the amount of equity that is for sale in the property is £80,000.

If you were buying this share and had 10% of the share to put down as a deposit, this would result in a deposit of £80,000 with a mortgage of £72,000. On top of the mortgage payments, you would also need to pay the rent for the 60% of the property that you do not own. The amount of rent payable would be advised by the vendor at the beginning so be sure to find this out. There may also be other monthly costs such as service charges which again can be confirmed by the vendor or your solicitors.

The costs for the mortgage would depend on a number of factors such as amount borrowed, term, lender, rate, etc, so speak with a mortgage adviser with shared ownership experience that give you the advice that you need.

Should I be considering a shared ownership property in Macclesfield?

Shared ownership is often a way for a person to buy a property that they would not otherwise be able to buy without taking advantage of the shared ownership scheme. 

If a person was able to buy a suitable property without using the shared ownership scheme, it would often be advised that they do so as this would remove the need for paying rent or dealing with a local authority or housing association. It may also reduce future costs if you planned to buy further equity in the property as this can result in professional valuation fees and legal costs.

It may be though that you cannot afford to buy the type of property that would make you comfortable and without using the shared ownership scheme, you had to settle for a much smaller one or live in a location where you did not want to be.

For example, if a couple with two children wanted to purchase in the conventional way, without the shared ownership scheme, they may only be able to but a two-bedroom flat in Macclesfield that they felt was not big enough for their situation.

Using the shared ownership scheme, it may be that same couple could buy a three-bedroom house in Macclesfield with a lot more room for the family.

Shared ownership is definitely not right for everyone so make sure it’s the right solution for you before going ahead.

Can you buy more equity in your property in Macclesfield when you have a shared ownership?

When you buy a shared ownership property, most local authorities and housing associations allow you to buy a higher percentage of the property in the future. This is called ‘staircasing’.

For example, you have bought 30% of your shared ownership property in Macclesfield and it had a value of £140,000 at the time resulting in a share value of £42,000. Four years on, the property is worth £180,000 and you now wish to buy a further 20% of the property.

This would mean that you need to raise a further £36,000 to buy this 20% of the property value. On completion, you would now own 50% of the property resulting in a share worth £90,000. In total, you would have paid £78,000 for this 50% share which is now worth £90,000.

It is sometime possible to staircase when remortgaging and using these funds to buy your additional share. A mortgage adviser with the right shared ownership experience will be able to work out whether you are in a position to do this, read about a Shared Ownership Mortgage Broker here.

Where would I look for shared ownership properties in Macclesfield?

If you are looking for a shared ownership property in Macclesfield, there are some good resources available online to help you. One shared ownership specialist is Share To Buy.

You can also find shared ownership properties for sale on your standard house sale websites such as Rightmove and Zoopla.

It may be that your local estate agents are able to list shared ownership properties or know of some for sale so perhaps get in contact with them. Your local housing associations and councils may also know of some available.

How does my mortgage adviser assess what I can borrow with a shared ownership mortgage in Macclesfield?

When you speak to a mortgage adviser about getting a shared ownership mortgage in Macclesfield, they will be looking at a variety of things to assess how much you can borrow.

They will need to find out the property value, the share that’s for sale, the monthly rent and service charges, the amount you have in deposit to go towards the transaction, your income, your monthly commitments such as children and debt repayments Car Loans or Student Loans, your indebtedness, your credit history and more.

As you’ll see, there is a lot to take into account when working out what you can borrow for your shared ownership mortgage so find a mortgage adviser with the relevant experience. To read more about how your indebtedness, you may find Does PCP Affect Mortgage useful.

To speak with an experienced mortgage adviser, please complete the contact form.

How much deposit do I need for a mortgage on my shared ownership property in Macclesfield?

The amount of deposit that you need for your shared ownership property in Macclesfield will depend upon the lender and your individual circumstances but there are lenders that can lend up to 100% of the share of the property that you’re buying. 

For example, if you are buying a property worth £250,000 and the share for sale is 40%, there are lenders that will consider the full £100,000 to buy the 40% without the need for a deposit.

This will depend on the applicant, what their borrowing capacity is, their credit history, income, debts and more.

To find out your credit history, you can do this by visiting Experian, Equifax or Transunion. Alternatively, Check My File will show data from all three of these agencies.

A mortgage adviser with experience in giving advice on shared ownership properties will be able to work this out for you.

How much would the stamp duty be for my shared ownership property in Macclesfield?

When you buy a shared ownership property, you may need to pay stamp duty depending on the property value and whether or not you are a first-time buyer.

It can be that the stamp duty is paid on the full market value at the beginning or otherwise paid in stages as you buy shares. Here is a useful link from the government giving more details about this.

For any advice around how much stamp duty you’ll pay, talk to a solicitor or initially you can check a stamp duty calculator.

Would I be allowed to rent out my shared ownership property in Macclesfield?

Properties that are being bought on the shared ownership scheme are not designed to be rented out. As they are to help people buy a home that they would otherwise have been able to, it will likely be forbidden to rent them out.

There may be certain circumstances after completion where the housing association or local authority may give you permission, but you would need to obtain this directly from them. If you were to get this, you would also need to get ‘consent to let’ from your lender to put tenants in the property. Again, there is no guarantee that this would be granted.

You could not take a buy to let mortgage for your shared ownership property in Macclesfield. Click here to find out more about buy to let mortgages for standard properties. 

What are the best places to live in Macclesfield?

This is a difficult question as everyone’s needs and preferences are different.

However, some good places to live around Macclesfield would include areas such as Wilmslow and Alderley Edge – both of which offer a variety of shops, restaurants and other amenities. Here is a bit of information about these places.

Wilmslow is a town in Cheshire. It is located on the river Bollin, close to the border with Greater Manchester.

It is a popular commuter town for people who work in Manchester and its surrounding areas. The town is home to a number of businesses and industries, including engineering, retail and tourism.

Wilmslow is twinned with the town of Rennes-le-Château in France.

Click here for more information about Wilmslow.

Alderley Edge is a village in the unitary authority of Cheshire East and the ceremonial county of Cheshire.

It is located on the edge of the Peak District National Park, about 9 miles southwest of Macclesfield and about 15 miles east of Chester.

The village is built on a sandstone ridge that is about 1,000 feet above sea level. The village is surrounded by countryside and has commanding views in all directions.

Alderley Edge is a very affluent area and is one of the most sought-after places to live in the UK.

The village has a number of pubs and restaurants, as well as a selection of shops. Alderley Edge is home to a number of celebrities, including many footballers. Read more about Alderley Edge from the National Trust.

What are the best schools in Macclesfield?

If you have children or plan to have children, the quality of the local schools may be a strong consideration in the location that you pick.

There are many great schools in the Macclesfield area, including Alderley Edge School for Girls, which is one of the top performing schools in the country.

Other great schools in the area include Prestbury Primary School, Congleton High School, and Wilmslow High School.

Does my mortgage broker need to be based on Macclesfield?

No, you do not have to use a mortgage adviser based in Macclesfield to buy a shared ownership property there. Many mortgage advisers give mortgage advice to their clients over the phone or by Zoom allowing flexibility in the sense that they do not have to take time off work to go to the mortgage adviser’s office.

It is recommended that you use a mortgage adviser with experience in shared ownership properties and make sure that they are showing on the FCA register. 

If you would like I NEED ADVICE to arrange for an experienced mortgage adviser to get in touch to give you the advice you need on shared ownership mortgages, please complete the contact form.

Who are the housing associations in Macclesfield?

If you’re looking for a shared ownership property in Macclesfield and wanted to speak with the local housing associations about what they have or expect to have in the future, two large ones are Peaks & Plains Housing Trust and Regenda Homes.

Otherwise, you may wish to speak with the council to find out if there are any opportunities for shared ownership that they know of. The main council serving the area is Macclesfield Town Council.

Conclusion

Shared ownership mortgages can be a way of getting on to the housing ladder when you otherwise may not have been able to. 

They otherwise may allow you to buy a property that is more suitable for you and your family than what you would have bought if you did not have access to the shared ownership scheme.

Macclesfield is a great place to live offering the Peak District nearby, easy access to Manchester with the town itself having a large variety of shops, bars, restaurants and amenities to keep you busy.

Shared ownership properties are not right for everyone so take into account the extra amounts you will pay for rent, service charges, professional valuations and legal fees when staircasing or selling the property. You may also have less control over your property than for example a freehold home that is all yours.

I NEED ADVICE can put you in touch with a qualified mortgage adviser with experience in arranging shared ownership properties. To get bespoke advice with no obligation to proceed, please complete the contact form.