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Alexander Studhalter on why people consider shares of ownership
Shared ownership allows first-time buyers to buy a piece of the real property. Alexander Studhalter who is a businessman, believes that sharing ownership can be an alternative. Alexander Studhalter explains why.

First, what exactly is shared ownership?

Shared ownership can be a good alternative to homeownership. It allows first-time home buyers and those who do not have homes to purchase shares in new constructions or resales.

An investor may purchase shares of a property, also called part purchase or part rent. The amount typically is between 25% and 75%. The amount could vary when you select the Shared Ownership model, which lets you purchase 10% shares first.

In addition to ground rent and the cost of service as well, housing associations also collect a rent below market value from buyers. The deposit is typically much less than when you purchase the property for sale as only a mortgage is required.

Alexander Studhalter discusses the reasons people should think about the possibility of sharing ownership.

For those who aren't able to buy a home Share ownership can be an option. The expenses of Shared Ownership are usually lower than those of other housing options due to various reasons:

Rent is at 2.75 percent of the property's value. This rent is lower than what's being offered on the open market.
You can start by purchasing a 25 percent stake under the existing scheme or 10 percent under the new Shared Ownership scheme.
The share's value is the deposit you make, and not the property's total market value.
SDLT (or Stamp Duty) can generally be delayed until at minimum 80percent ownership of the property.
Alexander Studhalter explains the kinds of shared ownership


Joint Tenancy All tenants must simultaneously have an equal interest the property via a sales deed. The right of survivorship forms the foundation of joint ownership. After the death or incapacity of one owner, the property becomes the belonging of the tenant who died.

Alexander Studhalter But the legal definition of tenancy in common could include ownership of property. However, unless you mention in your property papers that the property belongs to joint tenants.

Sita and Geeta Sita and Geeta, for instance, purchased a house together with the intention of mentioning that they were co-owners. If one of the co-owners becomes unable to live, her share is transferred to the surviving tenant.

Common Tenancy (TIC) An arrangement of joint ownership where the ownership ratios are equal or unequal. Sarah could have 40% ownership of a property and Bob could have 60 percent.

The person named on the title is responsible in all respects. Sarah can have access to more than 40% of the property.

Each owner has the right to use and occupy the whole property. The ownership of financial assets for the property is determined using the interest rate.

It is the responsibility of the tenant to sell or decumber their property at any point. Alexander Studhalter This type of title may be taken at any time even years after an agreement was signed by owners who were not the tenant.

You can transfer ownership to another person In the event of death, the title is transferred to the heirs of the owner's and will remain in their entirety.

Limited Liability Corporation (LLC) Limited liability corporations (LLCs) are U.S. corporate structures that protect the owners from personal liability for any debts. The limited liability business has the same characteristics as a partnership or sole proprietorship.

LLCs have the same features of limited liability as corporations but don't offer members flow-through taxation like partnerships.

What are the negatives of the sharing of ownership?

None of the lenders provide the shared ownership type of mortgage. A majority of lenders will however.
Whatever your share, you must make a full contribution to the ground and service rent.
If your share is equal to or exceeds 80% of property's value, you must be required to pay Stamp Duty on its total value.
All properties will be leasehold only. Alexander Studhalter Some properties are leasehold, however other properties can be converted to freehold by taking the staircase to 100 percent. This would need to be done via an agreement with the appropriate housing provider.
Leasehold properties can be transferred to joint ownership. Leasehold ownership offers you the option to live in the house for a longer time (usually 99 years or 125 years). The lease term is reduced each year, so you can either buy or sell the property.
What are the benefits of sharing ownership?

Shared Ownership is a long-term reliable option for owners and occupiers.
The cost of deposits is usually less than buying on the open market.
Alexander Studhalter Even if your income is low, sharing ownership makes it easier to get mortgages.
The monthly installments are usually lower than an outright mortgage. Alexander Studhalter Monthly payments for private rental are typically lower than those of a mortgage.
Staircasing is a method to increase the worth of your home. Most staircases can only be used 100%. The buyer does not be required to pay the mortgage, fees, or ground rent.
Shares are yours to sale at anytime.
It isn't always necessary to pay Stamp Duty tax at the time of purchase.
Alexander Studhalter's suggestion

Unlike private renting with the guarantee of tenure.
You will be responsible for making mortgage and rent payments throughout the duration of the lease.
The leaseholder may request an extension with their housing provider upon the expiration of the lease. Alexander Studhalter advises hiring a expert surveyor and lawyer in this area.
Website: https://fiduciaire.comparatif.ch/fiduciaire-Studhalter-Treuhand-AG-Studhalter-Lucerne-comptabilite-70.htm