Your Guide to Shared Ownership

How does it work?

Shared ownership is flexible home ownership. You can buy between 10% and 75% of the home, with the option to buy more shares at any time, including up to 100% in many cases (the maximum percentage share that you can purchase is subject to the terms of your lease).

Who owns the rest of the home? 

A reduced rent is paid on the share that we continue to own. Buying more shares is called staircasing and you can do this at any time

Example
You can buy a % of a new home based on what you can afford.  You pay a reduced rent on the share you don’t own.  So, If the value of the home is £150,000, a 50% share (£75,000)
would be paid for with a mortgage and deposit and the remaining 50% would be paid by monthly rent of £172.**

*Buildings insurance will also be payable.  In some instances there may be an additional service charge for items like maintaining the open space on the development.  Costs quoted are an estimate.  Your rent and mortgage offer may differ.


How Shared Ownership works

What you need to know

Mortgages

Lots of banks and building societies provide shared ownership mortgages. We can’t offer mortgage advice, but we can put you in contact with organisations that can. Like with all mortgages, deposits and interest rates will vary between lenders. Remember though you’ll only need a deposit related to the percentage share you buy.

Leasehold/Freehold

All shared ownership homes have to initially be sold via a shared ownership lease. If we own the freehold and you buy 100%, we’ll transfer the freehold to you at that point.

Looking after your home

As a shared owner you are responsible for the repair and upkeep of your home, just like any other home owner. If you’ve bought a new home from us, then you will benefit from a 10-year new home warranty.

Selling a shared ownership home

When it is time to move on, talk to us. If we know someone who might want to buy your shared ownership home, then we’ll let you know. If not you can then market your home yourself or through an estate agent, selling your share at a price based on market value at the time.

About your rent

Rents will vary depending on the amount you own. Rent is calculated at 2.75% a year of the value of the share you don’t own at the time you buy. This means if you ever want to
purchase 100% you won’t pay rent any more.

Unlike the unpredictability of renting privately, shared ownership rents will only increase at inflation +0.5% each year. Whether you’re a first-time buyer living with your parents, a tenant tired of renting while struggling to save for a deposit, or a former home owner who has sold/is selling their home, change in circumstance such as divorce…shared ownership could be for you.

Who is it for?

Eligible groups include:

First time buyers
People who used to own a home, but now can’t afford to buy without help
Those looking to reduce their outgoings and manage a smaller home
Existing shared ownership owners

In fact anyone can buy a shared ownership home – all purchasers must be affordability criteria assessments.

Who isn’t eligible?

Generally shared ownership is available to lots of people wanting a home of their own.

You won’t be eligible if you: earn more than £80,000 a year; can’t demonstrate you can afford to sustain monthly payments; you intend to let the property out or will continue to own another home.

Sometimes, but not always, we will need to prioritise local people

You can also find out more here from www.sharedownership.net

Key steps to owning your own home

  1. Talk to us.
  2. Find a shared ownership home you like, take a look at ‘Our Homes’ page to see what we have available 
  3. Apply online and provide key documents.
  4. Agree what & you are buying
  5. Get a mortgage.
  6. Reserve and instruct solicitors
  7. Buy and move in
  8. Live happily ever after!

We’ve also produced this Moving Home Checklist – click on the image to download.

A few things to keep in mind

  • Terms and conditions apply
  • Please obtain independent legal and financial advice before purchasing.
  • If you don’t keep up rent and/or mortgage payments you may lose your home.