The Risks
There are three risks associated with owning a Shared Ownership
Home. But we've negotiated a unique scheme that removes
the first two of them.
Risk 1: When you leave a Shared Ownership
Home and it's sold, if the property value has fallen, you
could end up owing the lender more than you receive from
sale of the property. It's a term called 'negative equity'.
But for our scheme, the Housing Association guarantees to
ensure you'll never face this problem. It'll repay your
mortgage in full when you leave the property.
Risk 2: Normally, when you buy a Shared
Ownership Home, you're responsible for the repairs and maintenance
of the property. But for our scheme, the Housing Association
will cover these costs. If something goes wrong with the
property, you'll simply phone the Housing Association and
it'll send someone round to repair the damage. It couldn't
be easier.
With a normal Shared Ownership purchase, when the property
is sold, if the value has risen, you could make a profit
once the mortgage is repaid and the costs of the sale have
been taken into account. Our research has indicated 'making
a profit' is a low priority for people with a learning disability.
By far the most important reasons learning disabled people
desire a Shared Ownership Home is the choice of where to
live and the long term security it provides.
You'll have the right to live in the property for as long
as you like. When you decide to leave the property permanently,
it'll pass to the Housing Association. The Housing Association
will immediately repay your mortgage. If the property value
has fallen, you won't be liable for the 'negative equity'.
If the property value has risen, the Housing Association
will keep any profit to offset the repairs and maintenance
costs and to provide money for further properties for others.
So this leaves just one risk.
Risk 3: The scheme is entirely dependent
on State Benefits covering both the mortgage interest payable
to the Lender and the rent payable to the Housing Association.
If State Benefits should stop, then you'll be liable to
make the payments yourself. If you cannot make the payments,
you'll have to leave the property.
You should be aware State Benefits have always been available
for people with disabilities and it's widely viewed
they will continue into the future. We therefore believe
this risk to be so small, it can be ignored.
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