Mutual Home Ownership is a new form of home ownership. It enables groups of people to club together to buy or build homes that they might not otherwise be able to afford. A Mutual Home Ownership Society is the legal structure for such a group.
MHOS has a number of benefits:
In return for their investment, members get equity shares in the society and the use of one of the homes. As with traditional home ownership, households' investment can comprise capital and a mortgage. In the case of MHOS, the society takes out a collective mortgage; each home is responsible for paying a share of it.
Using this model, the costs can be spread across the group according to ability to pay: more affluent households can buy more equity shares than the value of their home, making other homes in the scheme more affordable for households on modest incomes. When a household leaves, they can sell their equity shares, realeasing the capital to buy a home elsewhere.
MHOS has a number of benefits:
- Makes home ownership more accessible/affordable
- Builds community
- Greater financial security
- Finance & maintenance responsibility & workload shared across the society
- Greater control over housing than rented
- Homes remain affordable in perpetuity
In return for their investment, members get equity shares in the society and the use of one of the homes. As with traditional home ownership, households' investment can comprise capital and a mortgage. In the case of MHOS, the society takes out a collective mortgage; each home is responsible for paying a share of it.
Using this model, the costs can be spread across the group according to ability to pay: more affluent households can buy more equity shares than the value of their home, making other homes in the scheme more affordable for households on modest incomes. When a household leaves, they can sell their equity shares, realeasing the capital to buy a home elsewhere.
