StrideUp, a U.K. startup founded last year by Sakeeb Zaman and Rohan Trivedi, both formerly of Deutsche Bank, wants to make shared home ownership more readily available within the private housing sector.
Citing official figures from 2016, the StrideUp co-founder says that house prices in the U.K. are an average 7.6 times the average annual salary, more than double the figure for 20 years ago. Conversely, average mortgage amounts offered to first time buyers sit at just 3.6 times salary.
Shared ownership — where you and your landlord both own a percentage of the home you live in — is one solution to this problem. As and when you can afford to purchase more, you increase your stake at the current market valuation (and, in turn, reduce your rent), until eventually you own the home outright or can secure a conventional mortgage to do so.
“Our typical customers are first time buyers in their mid/late 20s to late 30s. They have spent five-plus years renting and want to get on to the property ladder but traditional mortgage finance is unable to bridge the gap between where they want to live and what they can buy,” says Trivedi.
“StrideUp breaks down the binary nature of homeownership where you rent (and own nothing) versus trying to buy a home using a mortgage and owning a 100 percent. With StrideUp people can start by buying a portion of their home, say 10 percent or 20 percent, and as they live in the property, they gradually increase their ownership”.
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