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What is Shared Ownership?

In a nutshell, Shared Ownership is a way to get yourself on the property ladder. You can purchase a percentage of a property and pay rent on the percentage you don’t own.

Even though you might not own the property in its entirety, you still live there. Shared Ownership doesn’t mean you share the house with other people, you can decorate it how you wish and also work towards buying smaller percentages of the house until you own it in full – this is known as ‘staircasing’.

Shared ownership is a way on to the property ladder for those who have a smaller deposit and can only obtain a smaller mortgage. For many first time buyers, it is a way onto the property ladder much sooner.

When it comes to the actual properties you can purchase with Shared Ownership, they are usually either new-build properties through Housing Associations, or properties previously owned through a Shared Ownership.

You purchase a share of the property, this is usually between 25-75% of the properties full value, and you pay rent on the remaining amount of the property you do not own.

Who can take advantage of Shared Ownership?

Shared ownership is a great option for many different people in different circumstances. For example, first time buyers who have a smaller deposit, those who have recently separated and previously owned a property but are looking to buy again, or even those in retirement who don’t want to tie up their money in a large property but want the security of owning their own home.

Is there an eligibility criteria?

  • You must be at least 18 years old
  • Your household income needs to be less than £80k and under £90k in London
  • You cannot own another property
  • You need to be approved for a mortgage e.g. passed credit checks, affordability checks etc.
  • You need a deposit – this could be 5-10% of the percentage of the house you will own

Benefits of Shared Ownership

  • It’s an advantage for those with a smaller deposit
  • A borrowing option for those on a lower or single income
  • You can sell your share of the house at any time

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE