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Shared Ownership

The larger deposit you can put forward, the better the interest rates and mortgage products you could be entitled to.

*As a mortgage is secured against your home, it could be repossessed if you do not keep up with the mortgage repayments.

Shared Ownership is a scheme helping both First-time buyers and those wanting to get back on the property ladder, at a time when house prices are soaring high and lender affordability is becoming stricter.

How does it work?  

You can choose to purchase between 25% to 75% of the value of your new home and the outstanding amount remains owned by the developer or housing association (Landlord).  You will then pay rent on the share that is owned by the ‘landlord’, which is calculated depending on their size of the share.   By purchasing a smaller portion, you may find it easier to qualify for a mortgage and your deposit more affordable.

Shared Ownership


Property house


Your share
is 40%


Share 60%


Deposit of


Mortgage Loan required


The larger deposit you can put forward, the better the interest rates and mortgage products you could be entitled to.

Lender Affordability

The lender will take your income and expenditure into account along with the landlord’s rent, ground rent, and service charges when completing their affordability checks.

Do I qualify for shared ownership?

We have put together some key features you need to meet to be eligible for Shared Ownership.

  • You are a First-time buyer.
  • You are an ex-homeowner but can’t afford to buy now.
  • You currently hold an existing shared ownership scheme and want to move.
  • The minimum deposit required is 5%.
  • Sole or joint combined income maximum of £80,000. (£90,000 for London).
  • You are reforming a new household. (Relationship breakdown)
  • You own a home and want to move but cannot afford a new home that meets your needs.

Can I buy more shares at a later date?

The answer is yes you can! This method is referred to as staircasing and it allows you to purchase and own more shares in your property. The staircasing creeps up in 5% chunks depending on how much you want to look to purchase. There is no obligation to purchase more shares, however, staircasing does come with some advantages and disadvantages.

  • More property ownership means you are higher on the property ladder.
  • Benefit from the rise in property prices.
  • Owning can often be cheaper than renting.
  • Have more control should you decide to sell.
  • As your home value increases, so will your purchase price of the share.
  • There will be costs involved in completing this transaction depending on the avenue you take.

Remortgaging is a great way to raise some additional capital to buy more shares.  You will need to complete the full mortgage application and affordability process, and you may be restricted to which lender will accept your mortgage based on the scheme but it will give you the opportunity to purchase more shares.

You may also need to gain permission from the Landlord to complete the remortgage process and see what costs are involved on their side.

Things to consider.

If you are a first-time buyer or previously owned a home, you could be liable for stamp duty charges.  Stamp duty will be charged on the full market value of the property and you have the option to pay the stamp duty immediately in full or you can pay this in stages.  You need to be mindful that paying in stages could mean you end up paying more, as the market value will increase over time.

As a shared owner you will own the leasehold on your property but you don’t have full control until you own 100% of the property.  Should you wish to extend the lease without 100% ownership, then you will need permission granted by the ‘Landlord’.  If the property is a house, once you own 100% you will have the opportunity to obtain the freehold.

If you own 100% of your home, then you can sell your property privately.  However, if you don’t own 100% then you are restricted around who can purchase the property.  The buyer will need to be a part of the Shared Ownership scheme and must buy a share equal to or greater than your current share.

In either of the above cases, when it comes to selling your property don’t forget the Landlord will get first refusal for 21 years from the date of purchase.

Not all homes are set up under the shared ownership schemes so it would be wise to speak to local estate agents in the area you wish to move to.

Until you own 100% of the property, you may find there are some clauses around the property that must be adhered to such as pets, decoration, or home improvements.  Be sure to check with your landlord before committing.

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