Shared Ownership Milton Keynes

About Milton Keynes?

It’s always wise to do your research on the location that you plan to purchase in. If you are looking to purchase a shared ownership property around Milton Keynes, the chances are that you are already familiar with the town. For anyone that isn’t, here is a bit of information about Milton Keynes.

Milton Keynes is a large town in Buckinghamshire, England. It is about 45 miles northwest of London.

The town is the home of the Open University and Milton Keynes College.

The town was designed around a series of grid roads. The roads are wide and straight and are surrounded by green space.

There are also several large parks, such as Willen Lake and Campbell Park. Milton Keynes is served by the West Coast Main Line and the M1 motorway.

The town has its airport, Milton Keynes Airport. The town is twinned with Bletchley, in Milton Keynes. Here you can find ideas for things to do in Milton Keynes.

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

Shared ownership properties are where you purchase a percentage of the property and pay to rent the other part. The part of the property that you don’t own will belong to a local authority such as the council or a housing association.

For instance, if you are buying a property in Milton Keynes being sold by a local housing authority and the value is £300,000 with a share for the sale of 35%, the amount of equity for sale in the property is £105,000.

If you were buying this share and had 15% of the share for sale to put down as a deposit, this would mean a deposit of £15,750 needing a mortgage of £89,250 to purchase this share. In addition to the mortgage payments, you would also be paying rent for the other 65% of the property that belongs to the housing association.

The rent payable would be disclosed to you by the vendor so be sure to ask this at the beginning. There can also be other costs such as monthly service charges which should also be advised by the vendor on the application.

The monthly payments for the mortgage would depend on many things such as the amount you borrow, the mortgage term, the chosen lender, the interest rate and more.

You should talk with a mortgage broker with experience arranging shared ownership mortgages so they can give you the individual advice that you need.

Should I be considering a shared ownership property in Milton Keynes?

Shared ownership can be a way for someone to purchase a home when they would not otherwise have been able to without the use of the shared ownership scheme. 

If someone was able to purchase a suitable property without making use of the shared ownership scheme, it would usually be advised that they do so as this to prevent needing to pay rent or liaising with your local authority or housing association. It can sometimes reduce future costs too if you wanted to purchase more equity in the home as this can mean paying valuation fees and legal fees.

It may be the situation however that you can’t afford to purchase the property that would be most suitable to you without using shared ownership. Without the scheme, perhaps you would need to purchase a smaller home or live in an area that you do not want to be in.

For instance, if a couple with three kids wanted to purchase in the usual manner, without the scheme, they may only be looking at a two-bed house in Milton Keynes that was too small for their situation.

Taking advantage of a shared ownership scheme in Milton Keynes, it may be possible that the same family could buy a four-bedroom house in the same part of Milton Keynes with more space and a larger garden.

Shared ownership is not best for everybody so do your research on whether it’s suitable for you before proceeding.

Can you purchase more equity in your property in Milton Keynes when you have shared ownership?

When you purchase a shared ownership property, most local authorities that sell you the properties and housing associations let you purchase a bigger percentage of the home in the future. This process is named’ staircasing’.

For instance, you have purchased 40% of your shared ownership home in Milton Keynes and had a full value of £260,000 at the time of purchase meaning a share value of £104,000. Three years later, the house is worth £320,000 and you want to purchase a further 15% of the house.

You now need to raise an additional £48,000 to purchase this 15% of the house value. When the transaction completes, you would now be the owner of 55% of the house meaning a share worth £176,000. You would have paid £152,000 for this 55% which is now valued at £176,000.

You can sometimes staircase when replacing your mortgage and raising money to purchase an additional share. An experienced mortgage broker with the right shared ownership mortgage experience will be able to assess the situation and tell you if this is possible.

Where would I look for shared ownership properties in Milton Keynes?

If you are seeking shared ownership homes in Milton Keynes, there are some great websites available online for you to search through.

One website that specialises in shared ownership is Share To Buy.

There are also shared ownership properties for sale on websites such as Rightmove and Zoopla.

Your local estate agents may also be able to sell shared ownership properties so it may be worth speaking to them so they can inform you when any suitable properties become available.

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

When you speak to a mortgage adviser about getting a shared ownership mortgage in Milton Keynes, 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 such as PCP and 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 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 Milton Keynes?

The deposit amount that you need for your shared ownership property in Milton Keynes will differ taking into account the lender and your situation however some lenders can offer up to 100% of the share price.

For instance, if you’re purchasing a home worth £300,000 with a share for the sale of 30%, lenders exist that will can lend the full £90,00 to purchase the 30% with no other deposit down.

This will depend on the borrower’s circumstances, their borrowing capacity, their credit files, annual income, indebtedness and many other things.

To know your credit history, you can visit Experian, Equifax or Transunion.

Otherwise, Check My File shows data from all the above three credit reference agencies and offers a free trial.

A shared ownership mortgage broker with experience will be able to guide you on this.

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

When you purchase a home using the shared ownership scheme, you may be charged stamp duty which will depend on the price and if you are a first-time buyer or not.

Stamp duty is sometimes paid on the full value of the home on the initial purchase or otherwise paid in stages as you staircase in the future. Here is a webpage from the government detailing this further. 

For advice on stamp duty, talk to a solicitor.

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

Homes being bought on shared ownership are not to be let. They are to help people purchase a property that they would not have been able to so it’s unlikely you’ll be able to rent the property out.

There could be circumstances following the purchase where the housing association allow this, but you would need to speak with them directly. If they were to consent, you’d also need ‘consent to let’ from the mortgage lender. Again, this is not guaranteed that you would get this.

A standard buy to let mortgage for your shared ownership property in Milton Keynes would not be granted.

Where are the best places to live around Milton Keynes?

It is always subjective to talk of the best areas to live in as it will depend on an individual’s preference. However, some popular areas to live in Milton Keynes include Bletchley, Woburn Sands, and Wolverton.

Bletchley

Bletchley is a town in Buckinghamshire. It is located in the southwestern part of the county, about 50 miles northwest of London.

The town is best known for its role in World War II when it served as the site of the British government’s code-breaking operation. Bletchley Park, the site of the code-breaking operation, is now a museum and heritage site.

The town is also home to several other museums and monuments commemorating its wartime history. Bletchley is twinned with Meckenheim in Germany and with Mont-Saint-Aignan in France.

Woburn Sands

Woburn Sands is a small town in Bedfordshire, England. It is located about 20 miles north of London and has a population of just over 4,000 people.

The town is best known for its association with the Dukes of Bedford, which has a country estate nearby.

The town’s history is closely linked to Woburn Abbey, a country house which was owned by the Duke of Bedford. In the 18th century, the Abbey and its estates were developed as a farming and residential community. Many of the original buildings survive and have been converted for modern use.

Woburn Sands is a commuter town, with many residents working in London. It has a selection of shops and amenities, including a library, health centre and a leisure centre. There are also several schools in the town.

Wolverton

Wolverton is a town in Buckinghamshire, England. It is situated 8 miles north of Milton Keynes and 14 miles west of Northampton.

Wolverton was one of the first new towns created under the New Towns Act of 1946. The town was planned with a town centre, residential areas and light industry.

The town’s name is derived from the River Great Ouse, which flows through the town, and the Anglo-Saxon Wulfrun, who founded a monastery in the town in the 7th century. Wolverton has a population of about 18,000.

What are the best schools around Milton Keynes?

Schools can vary greatly in terms of quality and performance with children all having different educational needs. Some parents may prefer state schools while others may opt for private schools.

Some good schools in Milton Keynes include Denbigh School, Shenley Brook End School, and Stowe School.

Does my mortgage broker need to be based on Milton Keynes?

Your mortgage broker does not have to be based in Milton Keynes for them to give you advice on purchasing there.

There are a large number of mortgage brokers that give mortgage advice over the phone allowing flexibility as borrowers do not have to take time off work to visit the broker’s location.

It is wise to use a mortgage adviser that has experience in shared ownership homes and make sure that they are on the FCA register. 

I NEED ADVICE can arrange for an experienced mortgage broker to reach out to give you individual advice on shared ownership mortgages for your home in Milton Keynes. Please complete the contact form if you would like this.

Who are the housing associations in Milton Keynes?

Some of the housing associations that service Milton Keynes are Housing Options, Anchor and The Grand Union Housing Group.

You can find out more information about the housing associations on the website of the Milton Keynes council.   

Conclusion

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

They can allow you to purchase a home that may be more suitable for your family.

Shared ownership properties are not right for all people and bear in mind the extra money that will be paid for rent, service charges, valuations and legal costs when you staircase.

You may also have less control than for example a freehold home that is all yours with no housing association involved.

I NEED ADVICE can arrange for a mortgage adviser with experience arranging shared ownership mortgages to give you a call for a free consultation. Please complete the contact form if you would like this.