What is shared ownership?
Getting onto the housing ladder can be difficult, especially in the South, where prices are high. Shared ownership is a more affordable way of buying a home.
How it works
Shared ownership is perfect for first-time buyers or for those who can’t afford to buy a home at the market price.
With shared ownership you buy a share of the house (usually 40% to 75%) and pay rent on the rest of the property, which is set below the market rate. In other words, you will pay a mortgage on the share that you own and pay rent to us for the share that we own. This means that you can secure a home without paying a deposit for the entire property.
If you want to, you can can buy more shares after the initial purchase, until you own the entire property – this is called staircasing. Alternatively, if you decide to move into another property, you can sell your shares to another buyer.
Things to consider
Shared ownership is for people who can't afford a home on the open market. If you meet this criteria and can afford to continue paying the costs relating to the property, then you can apply for shared ownership. This is a popular option for first-time buyers.
Priority goes to:
- Social housing tenants
- People who live locally
- Other priority groups
Your credit score
You will need to have a credit check. If your credit score needs improvement, consider waiting before making an application.
You'll also need to plan for the mortgage valuation, surveying, legal fees and stamp duty.
How to get started owning your home
We've put together the answers to the most common questions we receive about shared ownership. If there is anything you'd like to know that isn't listed here, please contact us by emailing here.
Shared Ownership allows you to buy a share in a home and pay a subsidised rent on the share you don't own.
You normally start by buying between 40% and 75% of the full value, and you can over time buy further shares until you eventually own outright.
You need to raise a mortgage to buy your share. If you have a large deposit or equity from the sale of a property, this can also be used towards purchasing your share.
We sell new build and occasionally refurbished properties, and we also refer buyers to existing shared owners who are ready to sell their share to a new buyer.
Anyone who cannot afford to buy a suitable home on the open market, but who meets the general eligibility criteria and can afford to continue to pay the costs related to the property can apply.
As well as our priority groups, for example social housing tenants, Ministry of Defence personnel and home seekers identified as priority by their Local Authority, we also accept applications from other first-time buyers, this includes:
- People living with parents or siblings
- People living in private rented accommodation
- People who need to move for work reasons.