Shared Ownership

Gorsley

Shared Ownership is a cross between buying and renting, aimed mainly at first-time buyers and those who don’t earn enough to buy a home outright. You own a share (with a mortgage) and rent the part you don’t own, at a reduced rate.

How Shared Ownership works

With Shared Ownership, you buy between a quarter and three-quarters of a property. You have the option to buy a bigger share at a later date. Most homes are newly-built but some are sold by the current shared owner. All Shared Ownership homes in England are offered on a leasehold-only basis. Once you own 100% you own the freehold, but you may still have to pay for services to the estate.

Who can apply for Shared Ownership?

In England, you can apply if one of the following applies:

  • You are a first-time buyer, or you used to own a home but can’t afford one now.
  • Your combined household income is less than £80,000 (less than £90,000 in London).
  • You rent a council or housing association property.

You don’t have to be a key worker, such as a nurse or teacher, to apply, but military personnel are given priority.

If you’re aged 55 or over, you can get help from another scheme called Older People’s Shared Ownership.

I’m interested. What happens now?

  • Find out what Shared Ownership homes are currently available:
  • Think if Shared Ownership is right for you. You may find our leaflet A guide to Shared Ownership useful. It’s saved in our ‘Library’.
  • Find out if you can get a mortgage. Not all lenders offer mortgages for Shared Ownership but many of the major ones do. You will need to apply for a mortgage for your share, and the lender will carry out strict checks to make sure you can afford the repayments.You will also be expected to pay a deposit – normally at least 5% of the share you plan to buy.
  • Make sure you will be able to afford all the costs of buying/running your home, including mortgage fees, moving costs, Stamp Duty, insurance, repairs, maintenance and – if it’s a flat in a block – your service charge. Remember, although you own only a share of the property, you will still have to pay all of the maintenance costs. We recommend a budget of £2,500 to pay fees (excluding Stamp Duty) relating to your purchase and move.
  • Read the list of things we provide in all Shared Ownership homes as standard.
  • Read more about what’s involved and your rights and responsibilities as a shared owner.

If you decide to go ahead, register with the relevant Help to Buy agent (see above). You may also find the list of recommended service providers in ‘Downloads and links’ helpful, as suggestions of independent financial advisors and solicitors to start you off.

For further information about the Shared Ownership opportunities at Two Rivers Housing, please contact our Home Ownership team by phone or by email.