THE AFFORDABLE WAY TO BUY A HOME
Shared Ownership provides an affordable, smart way to buying a new or resale home; you simply purchase a share in a brand new property - usually a minimum of 25% of the home's value – and pay a subsidised rent on the part you don't own. In future, if you wish, you can usually buy further shares until you own your home outright.
Shared Ownership is an alternative route to home ownership, for buyers who are otherwise unable to buy on the open market. The scheme is a Government led initiative that is carried out by the UK’s housing associations.
If you are a first time buyer and do not currently own your home, shared ownership gives you the opportunity to purchase a share in a new build or resales property.
There is often a misconception that shared ownership means you share with other people, whereas the term ‘share’ refers to the ‘share’ in a property. Shared ownership properties can be bought either as an individual or as a couple,
HOW DOES SHARED OWNERSHIP WORK?
You as the purchaser would pay a mortgage on the share that you own and then pay rent on the remaining share, to the housing association that sold you the property. The deposit required for shared ownership is much lower and therefore more accessible for so many people. You only need a mortgage for the share you are purchasing and not the full property value. We have given you a quick guide to buying through shared ownership with our 6 step guide to home ownership through shared ownership:
1. Register with your local registered provider (RP) and local homebuy agent
2. Gain an independent financial assessment from an Independent Financial Advisor
3. Once you have your application in place and an understanding of affordability, apply for a property that you want to buy
4. Reserve your property
5. Await your final mortgage offer
6. Exchange and complete!
AM I ELIGIBLE FOR SHARED OWNERSHIP?
Do you live or work in the area that you are trying to buy in?Is your annual household income less than £90,000 (London only) or £80,000 (outside of London)?
Are you at least 18 years old?
Shared ownership is open to all first time buyers and homeowners, but on the proviso that if you already own a home, you must be in the process of selling it. So whilst you don’t have to be a first time buyer, you cannot own another property alongside a shared ownership property.
You need to be able to demonstrate that you cannot afford to buy a home suitable for your housing needs on the open market without shared ownership.
Do you have a good credit history and can you afford the regular payments and costs involved in buying the home that you are looking for
HOW CAN I APPLY FOR SHARED OWNERSHIP?
Its simple!
1. Find a property you like that offers shared ownership – see our ‘find a home’ page for the most conclusive list of properties
2. Apply through the local homebuy agent or housing association offering this property
3. They will guide you through the rest of the process
