Share a mortgage with friends
Remember the iconic American series 'Friends': 6 people rent a property together. With rising house prices and rent increases, the friends are looking to buddy up and buy their own property, sharing the space just like in 'Friends'.
Share a Mortgage provides a safe and affordable solution to expensive renting, where you can buy a property with other likeminded people and share the costs of buying and living in a home.
Share a Mortgage enables you to stop paying rent to a landlord and get on the property ladder. You can search for and find other couples to share the costs of buying a home, the mortgage repayments, legal costs and living expenses. By sharing in this way it can make buying a home much more affordable.
Save £1,000s in rent and start investing in your own home
Instead of paying £1,000s in rent and bills each month towards your landlord’s property, you could be investing this in your own home. Properties are regarded as among the safest investments and once you own your property you can benefit from any increase in the property’s value. The average property price in Greater London rose from £364,227 in Feb 2013 to £414,356 in Feb 2014, an increase of £50,129 in one year.
How does it work?
We provide the full homebuying service, from you joining and finding a Mortgage Buddy, to the day of completion when you collect your keys. Our team consists of mortgage advisers, solicitors, RICS surveyors and customer service agents who have all worked in the conveyancing sector. During the process you will be advised of the next steps to take with your Journey Tracker and if you ever need help along the way, you can speak to our Customer Support Team.
You can get Shared Ownership Protection, a legal document which includes house rules, how to leave, how much you own, and lots lots more. Shared Ownership Protection clearly states how you will live with your Mortgage Buddies so that there are no arguments, just happy living.
Read how Ross, Chandler, Monica and Rachel shared a mortgage and each paid £506 a month
Ross, Chandler, Monica and Rachel each contributed £7,500 to create a £30,000 deposit. They had all been renting a property from their landlord costing them £2,000 per month. They subsequently had an offer accepted on a £300,000, 4-bedroom terraced property in North London.
They agreed to share the property and bills equally between them.
With a 10% deposit of £30,000 they arranged a mortgage for the other 90% at a rate of 4.3% APR over 25 years and the monthly payments were £1,474 (Natwest Bank – 2 Year Fixed Rate*). They added this to the bills (council tax, utilities, insurances), which were £550 per month; so the total monthly cost was £2,024. Split equally they paid £506 each.
When the property sold for £340,000** 2 years later, they each received 25% of the £40,000 increase plus their original deposit of £7,500. Ross now has £17,500 and plans on buying a place of his own whilst the others have decided to buy another place together.
* Correct as of 12 April 2014
** Property values can go up or down. In the event of the property value decreasing Jane would be liable to pay her share of the reduction when the property is sold.
read other related articles:
2. Leaving a shared ownership property
3. Cohabitation Agreement is Essential for Unmarried Couples Divorcees forced to rent
