Property prices are at an all-time high. The economic effects of the pandemic is likely to affect the young and those in low-paid jobs. People are struggling to save for a deposit. So, the need for affordable housing schemes, such as Shared Ownership, is greater than ever before.

According to The Office for National Statistics, house prices have increased by 11.8 per cent over the last year. The average UK house price is now at £270,000. And, if you live in London, expect to pay a bigger premium than any other region in the UK. The average property price in the capital a staggering £507,000.

‘Shared Ownership is a valuable help to buy product that supports first-time buyers who are unable to afford to buy a home on the open market,’ says Louise Mills, Sales and Marketing Director at St Arthur Homes explains.

Gemma Caulfield, Residential Sales Branch Manager at Bramleys agrees, ‘Shared Ownership a good scheme from an affordability aspect.’

Shared Ownership – explained

Follow this guide to find out everything you need to know about a Shared Ownership programme. Bear in mind, the rules vary when buying in Scotland, Wales and Northern Ireland.

Image caption: Blenheim Estate Homes

What is Shared Ownership?

This government-backed scheme is designed to get buyers, who are unable to afford a house on the open-market, the opportunity to get on the property ladder. Approved applicants buy a portion of a home from a non-for-profit organisation, instead.

Often referred to as the part own, part rent scheme, the buyer pays a mortgage on the share that they own, and pays rent to the housing association on the remaining share. You can then go on to buy a bigger portion as and when you are able to until (in most cases) you own the property outright.

At present, the minimum share is around 25 per cent. However, that’s set to change under the Affordable Homes Programme, which launched in April 2021. The new plan will run for five years until April 2026, where the minimum share will be 10 per cent.

However, new homes can take between 18-24 months to construct, so it may be a while before homes are available under the revised model.

What is the eligibility criteria for Shared Ownership?

To secure a Shared Ownership home, your total household income must be less than £80,000. Or, less than £90,000 if you’re buying in London.

The scheme is available to first-time buyers, those who have previously owned a home and can’t afford to buy one now, and existing Shared Ownership owners who want to move house.  You have to be over 18 years old.

‘You also need to be able to show that you’re not in mortgage or rent arrears,’ says Pete Mugleston, MD and Mortgage Expert for Online Mortgage Advisor. ‘You must also be able to demonstrate that you have good credit history and can afford the regular payments that the mortgage involves.’

How do I buy a Shared Ownership home?

Firstly, register with Share to Buy, where you can search for Shared Ownership homes nationwide, register your interest in properties and also contact housing associations for viewings.

When you have chosen a property, you need to get your finances in order to ensure you have the required deposit and can get a mortgage – a broker will be able to advise on the best mortgage for you.

Much like buying on the open market, you’ll need to instruct a solicitor to take you through the conveyancing process.

‘Make sure you instruct someone experienced in dealing with Shared Ownership purchases,’ says James Smith, Director and Co-founder at Holden Smith.

‘The law around Shared Ownership can be complex so you need a solicitor who can understand and explain everything to you in detail,’ he says.

Your solicitor will do all the usual title checks, the only difference is that a third-party Housing Association solicitor will be involved in the transaction as well. ‘There will be a lease between the Housing Association and the buyers to consider. The Housing Association solicitor will need to review this, too,’ says James.

Once all the checks are complete, an exchange and completion date is agreed and monies transferred. It’s much the same process as when buying on the open-market.

Image credit: Catalyst

Like most financial investments there are Shared Ownership pros and cons to assess.

Shared Ownership – pros

Shared ownership can be lifeline for those struggling to raise a huge property deposit…

1. It’s a way onto the property ladder

At the end of the day, regardless of what percentage you own, Shared Ownership allows you to become an owner-occupier. ‘It offers long-term stability without over-stretching yourself to try and get a mortgage you might not be able to afford in the long run,’ says Pete.

2. A lower deposit will be required

You will only need a mortgage for the share that you own. So, the amount of money required for the deposit tends to be a lot lower than if you were buying the property outright.

For example, if you’re buying a 25 per cent share of a flat with a market value of £300,000 your share would cost £120,000. A 10 per cent deposit would be £12,000. If you were buying on the open-market, a 10 per cent deposit on a property worth £300,000 would be £30,000.

 3. A ‘no fault’ section 21 eviction notice is not applicable

‘Unlike private renting, as long as the rent is paid and mortgage repayments are made, you can live in the property for the duration of your lease. This is usually 99 to 125 years,’ says Pete.

4. You can eventually own the property outright

In most cases, you are able to buy more shares in the property. The process is known as ‘staircasing’. Shared Ownership owners who have bought their property under the new format can now buy additional shares in instalments of just one per cent. That’s down from the previous 10 per cent.

Image credit: Catalyst

Shared Ownership – cons

Shared Ownership doesn’t grant you all the benefits of complete ownership until the property is bought outright…

1. There may be hidden costs

Different housing associations will charge different rents. Then, if the property is a leasehold, there is likely to be service charges. ‘Before starting the process, ensure that you have been advised about all the sums involved,’ says James.

2. It’s a long-term commitment

From a financial point of view it makes sense to stay in the property for a number of years. ‘This is mostly down to new-build properties including an extra premium on sale price. This will depreciate as soon as you move in (similar to new car purchases).

If house prices fall, you may fall into negative equity. Which means you’ll lose money if you then try and relocate,’ says Pete.

3. Selling can be complicated

Selling can be a time-consuming process. If you decide to sell, your home is valued by an independent expert and is marketed via the housing association for approximately eight weeks. If there are no takers, only then can you sell it on the open market through your choice of estate agent.

Interestingly, homes bought under the new model gives shared owners the option to end the eight-week period at the four-week mark. This gives you slightly better control over the resale process.

4. Renovations require approval

Although buyers are allowed to decorate, there can often be restrictions on what home improvements are allowed. ‘Permission may need to be sought from the housing provider before taking on structural alterations to the layout,’ says Louise.

The post Shared Ownership guide – the pros and cons appeared first on Ideal Home.

Stuck for children’s room ideas? Then take some inspiration from this mum who saved £300 creating a stunning rainbow mural with leftover paint and string.

We’ve seen rainbows take the UK by storm over the last few years and painting one as a mural in a child’s bedroom idea is a fun way to brighten up their walls, whether it’s in their bedroom, a playroom or a nursery. Plus, by using leftover paint, you can avoid some hefty costs as murals aren’t always cheap, especially if you’re hiring a professional mural artist to create it for you.

Rainbow mural makeover

Claire Vernon from Teddington, London, is mum to two children aged three and seven, and wanted to liven up her daughter’s bedroom wall. ‘My little girl’s room had plain walls and I wanted to create something colourful and cheerful for her that wouldn’t cost too much,’ she told money-saving community LatestDeals.co.uk

‘She had enjoyed painting rainbow pictures to put up in our window to show support for the NHS during the pandemic, so we thought it would be a nice idea to do a mural in her bedroom. She’s always loved rainbow colours so it seemed like the perfect plan.’

Before: Child’s pink bedroom

Image credit: Claire Vernon

This pale pink wall was the perfect spot for Claire to paint her design. ‘Although I use a lot of colour in the house, I tend to prefer more muted tones, rather than bright primary colours,’ she says. ‘So I knew this bedroom design would have to be in a similar palette. Then I had the idea of using leftover paint, to save money and tie in with the other rooms in the house.’

‘I had pink, gold, green, black, white and blue paint from other decorating projects, so I was able to create the mural without spending any money,’ Claire continues. ‘I’d used the dark blue on painting one of my bedroom walls, the pink was used to paint my bathtub, the muted green shade went in my hallway, the black was used for my fireplace and the white went on some cabinets. The gold paint was originally bought for my toilet cistern!’

After: Budget rainbow wall mural

Image credit: Claire Vernon

The finished result is a modern half rainbow design that sits nicely next to the built-in wardrobe, which also received a lick of paint. But how did Claire manage to paint the rainbow so perfectly? ‘I tied a pencil to the end of a piece of string and used that to mark out the arches,’ she explains.

‘We then got the leftover paints out and I let my little girl do the painting, which she loved. For the black spots on the second arch she used her fingers!’

Image credit: Claire Vernon

‘The gold paint was a bit tricky to work with, as it was metal paint and not designed for walls, but I persevered and got the result I wanted,’ says Claire. ‘Even though I ended up having to go over it to get an even finish, it was worth it as the gold really makes the mural stand out.’

How to create a rainbow arch on your wall

Image credit: Claire Vernon

Here’s one way of creating an arch on your wall using the pencil and string trick Claire mentioned…

1. Cut a length of string and attach a set of keys to the end. Tape the string to the wall and mark the line with a piece of chalk.
2. Repeat this process further along the wall, where you want the other side of the arch to be. Measure the distance between the two lines and mark the space in the middle.
3. Attach a pencil to the end of a length of string. Pin the string to the middle point. Ensure the pencil on the other end reaches both edges of the arch. Draw a semi circle from one side to the other.
4. Paint the outline of the arch, then create further arches as required.

‘Claire has proven that you don’t have to get a professional in to create a stunning wall mural,’ says Tom Church, co-founder of LatestDeals.co.uk. ‘What’s more, she has likely saved hundreds of pounds. According to Checkatrade, the average cost for a design fee and materials is £150, while a mural painter costs around £190 per day.’

If you were painting a mural, what would you choose and which room would it be in?

The post This savvy mum saved £300 creating a rainbow mural with leftover paint and string appeared first on Ideal Home.

Photo By Kathryn Black

Today’s Photo Of The Day is “Horned Lark in the Snow” by Kathryn Black. Location: Waterloo State Recreation Area, Michigan.

“Part of a flock of horned larks, snow buntings and lapland longspurs migrating in late winter,” describes Black.

Want to get your images in the running for a Photo of the Day feature? Photo of the Day is chosen from various galleries, including Assignments, Galleries and Contests. Assignments have weekly winners that are featured on the website homepage, Facebook, Twitter and Instagram. To get your photos in the running, all you have to do is submit them.

The post Photo Of The Day By Kathryn Black appeared first on Outdoor Photographer.