Why Co-ownership?

January 29, 2015

Northern Ireland Co-ownership Housing Association (NICHA) is an organisation who aims to help those who are unable to afford full mortgages, get on the property ladder. The Purchasers decide on the property they would like to buy and also decide on their ‘starter share’ which is anywhere between 50% to 90% equity. You can then start to buy NICHA out of the property which is  know as ‘stair casing’ if and when you are financially ready. Depending on your equity share you will pay yearly rent  to NICHA of 2.5% which works out much cheaper than paying a full mortgage on the property.

Benefits to Co-Ownership:

• NICHA cover your legal fees. You should note however that you will be liable for any outlays such as searches and Land Registry Fees.

• Depending on the price and equity share, you will not have to pay Stamp Duty Land Tax until your equity share is worth over £125,000.

• Co-ownership offers you the choice of where you want to live at a low cost.

• Allows you to get a foot on the property ladder.

• You can buy a bigger property that you otherwise may not be able to afford.

• You won’t need a big deposit. (Lenders’ policies may vary)

If you would like to know the equity percentage of the house you can afford NICHA recommend that you multiply your salary by three.

If you would like more information you can visit NICHA’s website at https://www.co-ownership.org/ or alternatively contact them on 028 9032 7276.

Please note; the content of this article is for information purposes only and further advice should be sought from a professional legal advisor before any action is taken.
Please contact Cleaver Fulton Rankin on 028 9024 3141 or alternatively visit www.cfrlaw.co.uk