Dispelling the myths of Low Cost Home Ownership

There are many misconceptions about Low Cost Home Ownership (LCHO). The reality is that it’s a perfect solution if you want to get on the property ladder but have limited income for a deposit.

As part of our Aspire2Own campaign with Vale of Glamorgan Council, Hafod Housing, Newydd and Wales and West Housing, we’re dispelling the myths about shared equity homes, showing why they are a great option for first time buyers….

Myth 1: Low cost home ownership is a bit of a last option
It certainly is not a last option. Most first time buyers need a deposit of approximately £30,000 today – that’s ten times as much as 30 years ago! By taking part in this scheme you will need a deposit of between 5%-15% of the 70% equity that you will hold in the property, you do not need a deposit for 100% of the value.

Myth 2: Low cost home ownership homes are ‘sub-standard’
Our homes are built to the same quality as any other property for ‘outright sale’. We offer homes for sale throughout the Vale of Glamorgan and as you may know, it is the most expensive place to live in Wales. This may put you off buying in this desirable area as you may assume you cannot afford it. Instead of being forced out of the area where you grew up, low cost home ownership allows first time buyers to buy a quality home in an expensive area at an affordable price.

Myth 3: The monthly costs are high
Not at all, in fact low cost home ownership is often cheaper than renting. There may be a small annual cost to maintain a communal area or grounds but this will normally be shared amongst all residents at the housing development.

Myth 4: Low cost home ownership homes are hard to find
We have properties available to purchase under our low cost home ownership scheme at many new developments across the Vale of Glamorgan. Please look at harmonihomes.com to find what LCHO properties we have available in the Vale, as well as the Aspire2Own page on the Vale of Glamorgan Council website and the Aspire2Own Facebook and Twitter pages.

Myth 5: Low cost home ownership homes aren’t big enough for a growing family
The size of our low cost home ownership homes vary from one to four bedrooms, ideal if you’re a first time buyer. Our scheme helps you get onto the property ladder, giving you that helping hand if you wish to purchase an even bigger property in the future.

Myth 6: You can’t make money on these houses so it’s not a good investment.
If your home increases in value, so does the value of your 70% share in the property. If you wish to buy your home outright and purchase the shared equity that United Welsh owns, you would have to pay 30% of its current market value. That means, if your property decreases in value, you could purchase your home outright for less than the initial value.

Myth 7: Low cost home ownership properties are hard to sell
Wrong! These homes are marketed in the same way as any other property for sale. In fact, they maybe more attractive to buyers for their affordable prices.

Myth 8: The process of getting a low cost home ownership home is complicated
The process is simple. It can be broken down into three easy steps:
1.The application process: You will need to complete the necessary registration form and submit it to the Vale of Glamorgan Council. The local authority together with the housing association will then decide who can proceed to purchase the property.
2. The purchasing process: If successful, you will need to consult with a mortgage advisor and appoint a solicitor to arrange your mortgage and purchase the property on your behalf.
3. After care: The housing association will look after you for 12 months after your purchase, ensuring any issues you may have are resolved.