A Guide to Shared Ownership

Published 17th June, 2017

With shared ownership you can purchase a percentage share of a property between 25% and 75%. The remaing share is owned by a housing association to whom you will have to pay rent. You do have the option to buy a bigger share in the property at a later date.

You will need a deposit of at least 5% and a mortgage to cover the purchase price of your share. Shared ownership homes are normally leasehold so there may be a service charge to pay whether it is a house or a flat. 

Anyone with a household income of less than £80,000 outside of London and £90,000 in London is now able to buy a shared ownership home. Military personnel will be given priority over any other applicants.

Do you qualify?

1. Does your household earn £80,000 a year or less? (outside of London)

2. Are you a first-time buyer?

3. Did you previously own a home but can't afford to buy one now?

4. Are you an existing shared owner looking to move?

5. You are at least 18 years of age.

6. Do you have a reasonable credit rating?

7. You have at least £1,500 savings to cover the one-off costs involved in buying your new home. This does not include any mortgage deposits, developer reservation fees or stamp duty (if applicable.)

Providing you meet the eligibility criteria, shared ownership schemes can be a way to get onto the property ladder, particularly if you have a low income or are first time buyers. You may find that you can purchase a larger home that you would not have otherwise been able to afford. It is important to be aware of the rental payments & service charges due.

Buying your property outright - Staircasing

Staircasing

After you have purchased an initial share of your shared ownership home, normally you will have the option to purchase further shares - up to 100%. This process is known as staircasing. You do not have to staircase but this will reduce the monthly rental payments.Furthermore if the property price has increased then it will allow you to make more profit when you come to sell.

Customers looking to staircase should contact their housing association.

Scrivins & Co have plenty of experience selling shared ownership properties. Contact us today if we can provide you with any help or advice with regards to your shared ownership home.