When a housing problem shared is a problem halved

Fri, Sep 7th 2007, 09:00

As would-be first time buyers turn to more creative means to make it onto the property ladder, house builder Redrow is throwing them a lifeline with its ‘Mortgaging with a Mate’ scheme.

The award-winning developer – currently building at Cooper Court, in Hazel Grove, near Stockport - is among those reporting an increasing trend to buy with a friend simply as a means of getting onto that first rung.

Simon Bennett, Redrow’s marketing director, says: “We are seeing more and more examples of friends and siblings joining forces to enable them to buy their first home. Just as young people have been used to renting shared properties for a long time, now it seems they’re willing to buy together too.

“It makes sense on a lot of fronts – each party has less of a deposit to find, the responsibility of the mortgage and household bills is shared each month, and each owner is investing in their future and hopefully building up some equity, rather than paying out rent.”

Redrow is taking steps to make it as easy as possible for people to buy jointly by making sure the financial advisors and solicitors it works with are all armed with the very latest information to help this type of buyer. It has even agreed special rates for Redrow home buyers with one of Britain’s leading lenders, the Halifax, who will accept mortgage applications from up to four applicants on the same property.

A new information leaflet, ‘Mortgaging with a mate’ is available at Redrow developments and provides useful information and advice on buying a home with friends. A similar section has been added to the developer’s website. Special events and workshops have also been held around the country to promote the concept of buying with a buddy and more of these will follow.

Buying a brand new home can be a good option for joint purchasers as, with little or no maintenance to worry about, there’s less likely to be arguments over any jobs that need doing. Also with many new homes - even apartments - including at least one en-suite as well as the main bathroom, a new home can offer more privacy for friends who are sharing.

It’s little wonder that mortgaging with a mate is getting more popular when you consider some of the latest headlines. According to the Halifax annual first time buyers survey earlier this year, the average house is unaffordable for first time buyers in more than nine out of ten towns; and the number of first time buyers has fallen to its lowest annual total since 1980.

And the Halifax Key Worker Housing Review has revealed that the average house price is unaffordable for all five key worker occupations (nurses, teachers, police officers, fire fighters and paramedics) in 70% of towns across Great Britain.

“Faced with statistics like these, a lot of people are having to find different ways to get onto the property ladder. Many turn to their parents or another relative for financial assistance or to act as mortgage guarantors, but for those who don’t have this option mortgaging with a mate could be the next best thing,” says Simon Bennett.

He adds: “There are now various mortgage products available from high street lenders allowing up to four people to take out a joint mortgage. The financial advisers we use can recommend an appropriate product to suit the buyers’ circumstances.

“It’s also important that co-owners protect themselves with things like a joint deed and a cohabitation agreement, which will cover issues like each owner’s share of the final property value and what will happen in the event of death or other changes in  living arrangements. These are all things that the solicitors we work with regularly can advise upon.”

Those who fancy stepping onto the ladder with a friend will find the perfect pad to share at Cooper Court, Hazel Grove.

Just three miles away from Stockport this development will eventually feature 98 two and three-bedroom mews and town houses and two-bedroom apartments.

Patsy Aicken, sales director for Redrow Homes (North West), says: “We see the struggle that first time buyers face when they want to take a step onto the property ladder and so we aim to help them as much as possible.

“At Cooper Court there is plenty of choice for those looking to take the plunge and share with a friend.”

Priced from £156,000, the Avon apartment is well suited to busy professionals who want the convenience of a new build and don’t want to worry about renovations and too much maintenance. Although designs differ, the property typically offers an open-plan living/dining/ kitchen area, along with two bedrooms – one with en-suite shower room – and the main bathroom. 

Patsy adds: “Having two bathrooms means that the Avon is extremely suitable for two friends buying together to get on the property ladder. It also has the contemporary open plan living space that young people tend to prefer.” 

Currently available are two-bedroom apartments and two-bedroom houses, priced from £156,000 and £175,000 respectively, as well three-bedroom homes, starting from £229,950.

Cooper Court is attracting buyers who want to be able to combine their professional city lives with a little bit of peace and relaxation at home.

Manchester city centre is less than half an hour away by rail or car, making it the perfect choice for commuters and those who love being close to the buzz of the city, without living right in the middle of the action.

But while Cooper Court offers easy access to urban life, the semi-rural location of charming Hazel Grove village is another draw, with the local reservoir right behind the development offering the perfect opportunity for a summer stroll.

Travel connections from Hazel Grove are excellent with easy access to the A6, which links to the M1 and M6 motorways.  There is also a local railway station which will take people straight into Manchester Piccadilly in 30 minutes.

For more information on Cooper Court call the sales team on 0845 676 0372 or log onto www.redrow.co.uk/developments/view/10