Shared ownership explained
Shared ownership is an exciting step onto the property ladder. It’s a flexible, affordable, government-backed way to buy a home that works for you now, and for your future.
With shared ownership, you can start by purchasing a share of your home, usually between 10% and 75%, depending on the development. The exact share is based on your deposit, mortgage, and a financial assessment to make sure it’s affordable for you. You’ll then pay rent on the portion you don’t yet own.
Over time, you can buy more shares when it suits you; this is called staircasing. Each time you staircase, your rent decreases, and in most cases, you can continue until you own your home outright.
Benefits of shared ownership
Your monthly payments go towards something that is yours.
You only buy what you can afford, avoiding financial strain.
A smaller deposit than purchasing outright.
In most cases, you have the option to buy more shares.
Choose not to increase your share.
Benefits of shared ownership
Your monthly payments go towards something that is yours.
You only buy what you can afford, avoiding financial strain.
A smaller deposit than purchasing outright.
In most cases, you have the option to buy more shares.
Choose not to increase your share.
Do I qualify for shared ownership?
Your household income must be under £90,000 if you’re buying in a London borough, or £80,000 if you’re buying anywhere else.
You need to be a first-time buyer or someone who cannot afford to buy a suitable home on the open market.
Already a shared owner? Your current home needs to be under offer before you reserve a new one.
If you own a home (not through shared ownership), you must have sold, or be in the process of selling your home before applying.
The shared ownership home must be your main home. Subletting it, or part of it, is not allowed.
You’ll need to afford the minimum share and pass a quick affordability check to make sure you can get a mortgage.
You must register with an independently qualified financial advisor.
Tip: We have contact details of several independent financial advisors and solicitors who are both experienced in shared ownership sales, as well as our developments. If you need help finding one, just let us know.
What costs are involved with buying shared ownership?
We know buying a home is a big step, and budgeting for it all can feel a little overwhelming. So, we’ve broken it down to give you a clearer idea of what to expect. Every home purchase is different, but here’s a general guide to the key costs involved.
Reservation fee (£500, this is taken off your final purchase price)
Independent Financial Advisor (IFA) fee (Varies depending on your financial advisor)
Mortgage valuation fee – to confirm your home’s value
Mortgage arrangement fee – sometimes charged by your lender
Documentation/engrossment fee (£180 - £500) - this is a fee we take when preparing the lease
Solicitor’s fees (this varies depending on your solicitor)
Stamp duty – as a shared ownership buyer, you can choose to:
Pay stamp duty on the full market value upfront, or
Pay in stages as you buy more shares (only if you go over 80% ownership)Apportionment of rent (Rent to the end of the month, plus next month's rent in advance)
Apportionment of service charge (Service charge to the end of the month, plus next month's service charge in advance)
If you want to find out more about the stamp duty threshold, you can do so on the Gov.uk website.
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Keen to find out more?
Whether you’d like to book a viewing or simply have a quick introductory chat, our helpful advisory team would love to hear from you.