Shared ownership explained

With shared ownership you're essentially buying a share of the leasehold of a new-build house or flat, with the option to buy further shares in the property as and when you choose.

You initially buy a share of between 25% and 75% of the overall value. An IFA will carry out a quick and simple affordability check to determine the share you can afford.

You'll pay a mortgage on the share you own and pay a subsidised rent on the remaining share.

Mortgage deposits are usually between 5 and 10% but, as you'll only need a mortgage for the share you're buying, the amount required is usually far lower than what you'd need if buying outright.

You'll have the option to increase your share while living in the home - this is known as ‘staircasing’, In most cases you can staircase all the way to 100%, meaning you'll no longer pay any rent, just your mortgage and any service charges.

In most cases, yes.

You can buy more shares in your home as and when you can afford it - this process is called staircasing.

The greater the share you own, the less rent you will pay. Once you own 100% of the shares you will own the leasehold outright and no longer pay rent to us. If you own the leasehold to a house you may also be able to buy the freehold.

In some cases the maximum share you can purchase is capped at 80%. This cap is often put in place as part of planning permission in order to make sure that that the home is retained for local people, rather than becoming available as a second home.

If all these statements apply to you then you are eligible for shared ownership:

• You are at least 18 years old.

• Outside of London your annual household income is less than £80,000.

• In London, your annual household income is less than £90,000.

• You don't already own another home, or if you do then you're in the process of selling it.

• You can't afford to buy a home suitable for your housing needs on the open market.

• You are not in mortgage or rent arrears.

• You can demonstrate that you have a good credit history (no bad debts or County Court Judgements).

• You can afford the regular payments and costs involved in buying a home. The total monthly costs must be less than 45% of your monthly income.

Shared ownership is available on selected developments and properties. You can find more detail on the scheme here or call us free on 0808 196 1532 and let us help you get that new home feeling.