Buying with SHARED OWNERSHIP MOVES
How Does Shared Ownership Work?
Cannot afford a deposit or mortgage payments on a typical home to meet your needs? You can now buy a home through the Government's Shared Ownership scheme. This is an alternative path to home ownership, apart from using the 'typical' full ownership method of buying your new home.
You'll buy a % share of the property, then pay rent to a landlord, usually a Housing Association (HA) on the remaining share.
So when you buy your home through Shared Ownership, you will in effect:
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Buy a % share between 10% and 75% of the home’s current full market value
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Pay rent to the landlord (Housing Association) for the % share of the property that they'll still own
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Pay ground rent and service charges, usually payable monthly, towards the cost of maintenance of communal areas
Buying Your % Share
The % share of a Shared Ownership home you'll buy is usually between 25% and 75% share.
You can take out a mortgage to buy your ownership % share, or part pay for it with savings. If you're drawing down a bank mortgage, you’ll need to pay a deposit, usually an amount between 5% and 10% of the % share you’re buying.
In the future, you can buy more shares in your home. This is known as ‘Staircasing’ So if you do buy more shares, you’ll be paying less rent. Remember, the amount of rent you pay will always be based on the remaining landlord’s % share of the property.
What Home Can I Buy Using The Shared Ownership Scheme?
You could buy:
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A new-build Shared Ownership home
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An existing home through a Shared Ownership resale scheme (or estate agency like SO Moves)
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A home that meets your specific needs. For example a ground-floor flat, if you have a long-term disability
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Shared Ownership homes which are offered by Housing Associations (HA's) local councils, and other organisations
NB: These organisations are usually known as 'Housing Providers’ or property landlords, while the Shared Ownership homes (houses, apartments & flats) will be leasehold properties. For some SO homes you may need to show that you live or work in (or have connections to) the area where you want to buy your home.
SO Shared Ownership Moves
Here at Shared Ownership Moves, we're devoted to helping all of our clients navigate the process of Buying or Selling their own Shared Ownership home. Now you can do it
the easy way at SO Moves..
Make it happen at SHARED OWNERSHIP MOVES
So Who Can Apply?
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
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Your household income is £80,000 per year or less (£90,000 per year or less in London)
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You cannot afford all the deposit and mortgage payments for a home that matches your needs
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You can meet the Homes England affordability criteria. You will need to speak with an Independent Financial Advisor (IFA) to complete the Shared Ownership affordability calculator. Contact SO Moves to arrange a telephone meeting
One of the following must also apply:
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You're a first-time home buyer or starting on the property ladder
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You're an existing shared owner, but now you want to move home to somewhere else
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You once owned, but no longer own a home, nor can afford to buy another at this time
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You're forming a new household, for example after your relationship has broken down
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You own a home and want to move, but cannot afford a new home that meets your needs
What If I Already Own A Home?
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 (i.e 'sold subject to contract' or 'STC')
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Written confirmation of the sale agreed (i.e 'memorandum of sale') including sale price and your intention to sell
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Completed the sale of your old home on or before the date you complete buying your new Shared Ownership home