Help to Buy: Shared Ownership
Help to Buy: Shared Ownership also known as part-rent part buy is a scheme that offers you chance to buy a share of your home (between 10% and 75% of the home’s value). The buyer then rents the other % of the home from a Registered Provider or Housing Association. The buyer still pays a deposit of a minimum of 5%, however, this only covers the % you will own.
For example, to buy a £200,000 house through the open market route the buyer would pay a minimum 5% deposit of £10,000. If you only wanted to buy a 10% share of the same property under the Help to Buy Shared ownership scheme, your minimum deposit would only be £1,000. This is a 5% deposit on the 10% share.
You could buy a home through 'Help to Buy: Shared Ownership' in England if your household earns £80,000 a year or less (or £90,000 a year or less in London) and you are a first-time buyer, you used to own a home but cannot afford to buy one now or are an existing shared owner looking to move.
These Help to Buy Shared Ownership schemes are currently available in Wirral.
Rent to Buy
'Rent to Buy' is a government scheme to help with the transition from renting to owning by providing a subsidised rent.
You rent a new build home at approximately 20% below the market rate with an option agreement to buy a share of the home within 5 to 7 years depending on the scheme.
The intention is that while paying 20% less in rent, you may be able to build up a deposit. You are under no obligation to buy the property when the rental term is up.
You may be required to pay a minimum percentage share of the value of the property when the rental term is complete.
There are currently no Rent to Buy schemes available in Wirral (updated 16 May 2023)