How Shared Ownership Works

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You can buy a home through the government's shared ownership scheme if you cannot afford all of the deposit and mortgage payments for a home that meets your needs using the full ownership model. 

You buy a share of the property and pay rent to a landlord, usually a local or national housing association, on the rest.
When you buy a home through shared ownership, you:

 

• buy a share between 10% and 75% of the home’s full market value

• pay rent to the landlord for the share they own

•  usually pay monthly ground rent and service charges, for example towards the maintenance of communal areas

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Buying Your Share

The share you can buy is usually between 25% and 75%. 

You can take out a mortgage to buy your share or pay for it with savings. You’ll also need to pay a deposit, usually between 5% and 10% of the share you’re buying.

You can buy more shares in your home in the future. This is known as ‘staircasing’. If you buy more shares, you’ll pay less rent. The amount of rent you pay will be based on the landlord’s share.

Homes You Can Buy Using The  Shared Ownership Scheme

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You can buy:

 

• a new-build home

• an existing home through a shared ownership resale scheme

• a home that meets your specific needs, if you have a long-term disability - for example, a ground-floor flat

• Shared ownership homes are offered by housing associations, local councils, and other organisations. They are called ‘providers’ or landlords.

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All shared ownership homes (houses and flats) are leasehold properties.

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Who Can Apply

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You can buy a home through shared ownership if you meet the following criteria: 

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• You are over 18 years of age

• your household income is £80,000 a year or less (£90,000 a year or less in London)

• you cannot afford all the deposit and mortgage payments for a home that meets your needs

• you meet the affordability criteria. You will need to speak with an independent financial advisor to complete the affordability calculator. Contact us to arrange a telephone meeting

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One of the following must also be true:

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• you are a first-time buyer

• you used to own a home but no longer do and cannot afford to buy one now

• you're forming a new household - for example, after a relationship breakdown

• you're an existing shared owner and you want to move

• you own a home and want to move but cannot afford a new home that meets your needs

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For some homes, you may need to show that you live in, work in, or have connections to the area where you want to buy the home. 

 

If You Already Own a Home

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When you buy a shared ownership home, you must have: 

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• formally accepted an offer for the sale of your current home (called 'sold subject to contract' or 'STC')

• written confirmation of the sale agreed (called a 'memorandum of sale') including the price and your intention to sell

• you must have completed the sale of your home on or before the date you complete buying your shared ownership home

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