There are lots of paths people take to find a place to call home.
As saving enough for a deposit feels increasingly impossible, many people keen to get on the property ladder are going for shared ownership, a process that requires a smaller deposit and gradually owning a greater portion of the property.
One of these people is Kirstie, 26, who works in advertising.
Kirstie recently moved into a coach house in Milton Keynes, with a deposit of just £2,700.
As part of our weekly series What I Own, we’re taking a nose around her living setup.
Hey, Kirstie! Where were you living before this?
Ater graduating from Staffordshire in University in 2015 I moved back to Milton Keynes and in with my mum.
I paid rent to my mum, £200 a month that I’m very thankful she never upped my rent during my five years home, although in the final year of my living there it was on the basis that I was saving to move out – which i was!
What made you go for shared ownership?
In Milton Keynes, and buying alone, there was never going to be the opportunity to buy a full property but I was determined that I didn’t want to rent when I moved out.
I researched into shared ownership and thought it was best for me.
What is shared ownership?
Shared Ownership gives first-time buyers and those that do not currently own a home the opportunity to purchase a share in a new build or resales property.
The purchaser pays a mortgage on the share they own, and pays rent to a housing association on the remaining share.
Because the purchaser only needs a mortgage for the share they are purchasing, the amount of money required for a deposit is a lot lower when compared to the amount that would be required when purchasing outright.
The purchaser has the option to increase his share during their time in the property via a process known as ‘staircasing’, and in most cases can staircase all the way to 100%, thereby owning the property outright. Shared Ownership properties are always leasehold.
Did you find the process of pursuing shared ownership at all confusing? Can you tell us about how you got started?
There was certainly less information out there about shared ownership but I had done my research.
It isn’t always clear on sites like Rightmove what is shared ownership and what isn’t. I also wasn’t on the best salary at the time as well so found myself getting confused.
I worked out a rough amount I could borrow based on calculators.
I ended up finding a lot of properties with Domovo and they were amazing and so helpful every time I spoke with them. They would run the numbers to check if possible before seeing the property.
So how much did you need to save for a deposit?
I ended up only pay £2,700 for a deposit which was 5% of the share I was buying. I did originally have £11,000 – but was turned down for a mortgage due to my car purchase so I paid off my car, they re-ran it with my lower deposit and it was accepted.
How much do you now need to pay to live here?
My rent and service charge is roughly £400 and my mortgage is £210. This will change based on if I decided to buy more % in the property.
What about bills?
I’ve only been there since January but they work out at about £260 a month.
What do you get for what you pay?
Two bedrooms and one bathroom, then a living room diner and a separate kitchen.
How have you made your place feel like home?
I have completely redecorated the property and did it all in week!
I had helping hands from some amazing family and friends and we painted every wall, wallpapered two, I had carpet put down and I changed the bathroom tiles.
So all that plus all the homely bits and family photos I’ve put up it really makes it homely.
Would you recommend shared ownership to others?
Yes! It’s a great way to get on the ladder. I was always waiting for the person to buy with or a higher salary or something else and I hit 25 and I thought, why am I waiting?
I properly saved for just less than a year, seeing it for the first time in November and moved in at the end of January.
Look into it deeply. Fully understand what is your responsibly and what is the housing associations to fix/sort.
I think a big misconception is that someone else, like a person, owns the other half but it’s a housing association who does.
Why did you choose this house?
When I walked in the first time, I felt at home.
Despite the concrete floors and yellow walls I could picture what it could be.
What also helped was it was a coach house, which I found different. I’d realised I wouldn’t afford a house and would need a flat but this wasn’t a flat or a house – it was in the middle. It had my own front door, it has a car parking space as well as visitor spaces.
It’s also right by a little shopping area and a pub that I can see from my living room.
It’s in a great location. Although about 35 mins from my mums house, it was only 16 mins from work.
Do you like the area?
I love it! Great community feel and although my place is 10 years old, it’s still really new and there is lots of greenery and man-made lakes around.
Do you feel like you have enough space?
More than enough! And so many plug points!? I haven’t had to use an extension lead.
I bought lots of storage things, like an ottoman bed, but I have a great cupboard and my kitchen cupboards aren’t full but have so much stuff in them!
What are your housing plans for the future?
This isn’t my forever home but it’s a great first home. It’s a home I’ll be in for the next five to ten years.
It has room for growth but the goal will be buying a house and full ownership eventually!
Shall we have a look around?
How to get involved in What I Own
What I Own is a Metro.co.uk series that takes you inside people's properties, to take an honest look at what it's like to buy a home in the UK.
If you own your home and would be up for sharing your story, please email whatirent@metro.co.uk.
You'll need to have pictures taken of your kitchen, living room, bathroom, and bedroom, plus a few photos of you in your room. Make sure you get permission for your housemates! You'll also need to be okay with sharing how much you've paid to live there and how you afforded the deposit, as that's pretty important.
If you're renting, you can take part too! What I Own runs alongside What I Rent, which is the same series but all about renting. Again, if you'd like to get involved just email whatirent@metro.co.uk.
Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
Share your views in the comments section below.
MORE: What I Own: Lanre, who saved up a £34,300 deposit for a two-bedroom house in Uxbridge, London
MORE: What I Own: Nikki, who owns a £205,000 two-bedroom flat in Maidstone, Kent
MORE: What I Own: Tristan, 26, who paid a £11,500 deposit for a three-bedroom home in Strood, Kent
source https://metro.co.uk/2020/03/14/kirstie-paid-2700-deposit-shared-ownership-two-bedroom-flat-12396653/?ITO=squid
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