What is Shared Ownership and how does it work?

Shared ownership is a great opportunity to get onto the property ladder. It’s a government-funded scheme designed to help people who can’t afford to buy a home in the open market. It enables you to buy a share of a property that you can afford, usually between 25% - 75%, and pay us rent at a level below market value for the rest. You can usually increase the share you own (called staircasing) until you own all of your home and no longer pay any rent. However some properties do have restricted staircasing so make sure you check with us first.

A deposit is required for shared ownership – but it’s only a percentage of the share of the property being bought. For example: if the selling price of the home is £150,000 and the share you wish to purchase is 25% (£37,500), most lenders will now ask for a deposit of at least 5%.

We may be able to help you take the next step towards purchasing a home. Click on the links below to find out whether Shared Ownership is for you.

Benefits

Benefits to shared ownership

  • You can buy shares in stages
  • It may work out much cheaper
  • Your finances will be checked to ensure you can only buy what you can afford
  • You can sell at any time (see Resales)

Shared Disadvantages

Disadvantages to shared ownership

  • The location of the properties may not be your preferred option
  • It can be difficult to staircase if the value of the property increases
  • You may need to pay a service charge

Extra Information

There may be times where you need to resell your share (selling your share in your home), staircase (purchase additional shares in your home) or remortgage (change your mortgage lender).

It is important that you know about these processes and any fees that may be involved before you purchase a shared ownership property.

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