Can anyone help advise if there is a minimum income needed to get shared ownership? I have a deposit which could buy a share and was wondering how much I would need to earn to be eligible for the scheme.
I have a young toddler (am a single mum), so really don't want to have to go to work yet, but would rather invest the money I have rather than pay private rent which is very expensive.
I assume if I am not working I can get housing benefit to cover the rent share??...
I would appreciate any advice from anyone who is/has been in the same situation as me.. xx
I've never looked into this, but I think hb is normally denied if you have savings over about £16,000 I think having a sizable deposit tied up in property would stop you being able to claim. I could be wrong, I'd like to be.
The £16k savings only applies to capital that you can access and not the property you live in thankfully.
I need to buy somewhere soon so that I can invest it, otherwise they will class it as income as it's just sitting in my bank at the moment. And if I don't invest it, it will just get used up on rent/bills until gone which is a waste x
When I say I don't know what my income details are, obviously I have bread and butter income now from benefits and maintenance, which will obviously be too low. But it's like they want me to get a job first, then apply, which is a waste if it's still too low.
You need to be able to get a mortgage to cover your percentage the house. So a £200,000 house if you buy half you need to be able to get a mortgage for £100,000 minus the money you have as a deposit. Your income must cover the mortgage and rent to the HA, there is no actual limit to how much you must earn.
It says: Benefits will not be included as income when assessing your affordability, therefore it is unlikely you will be accepted for a shared ownership property or be able to find a mortgage.
There is no set minimum income allowance for shared ownership. Each property will have its own valuation and the housing association will determine the minimum income required for that property to be affordable to people earning under the maximum allowance threshold. If you have a large amount of cash to put down on a property this may make the minimum income more affordable.
So it sounds like you need an income, and benefits won't count as one.
It's a pain as I have enough share to buy a minimum share for a couple of properties, so I would not need to get a mortgage unless I wanted a bigger share. So the only expenses I would have to pay is rent, which in some cases is £200 which I could just about cover.