Buying Your Shared Ownership Home

What is Shared Ownership?

With shared ownership, you buy between 25% and 75% of a property. You pay a subsidised rent on the remaining share to a Housing Association. You may have the option to buy a bigger share in the property at a later date, potentially owning your home outright in the future. This is known as staircasing. Shared Ownership is an excellent way for people to become home owners, even if they don’t have the savings or income required to buy a property outright. Most of the homes available are newly built, but some are properties being resold by housing associations. All shared ownership homes in England are offered on a leasehold only basis.

How do shared ownership mortgages work?

 You will be taking out a mortgage on the portion of the total value of the home you want to buy. This can be between 25-75% of the total home value.

For example:

• If you buy a 30% share in a £300,000 home, your share would be £90,000 and you would pay rent on the rest.
• The rent you pay will usually be 3% of the part of the value of your home you don’t own. To calculate the rent, you simply divide the housing association’s share of the equity by 100 and then multiply by three. This works out as £6,300 a year, or £525 a month, for the above example.
• You will need to put a deposit down, too. How much this is will vary, but it’s usually between 5% and 10% of the share you’re buying. So a 10% deposit on your £90,000 share would be £9,000

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

Why choose Just Mortgages for Shared Ownership Mortgages?

All Just Mortgages Advisers are professionally qualified. In addition to this our Mortgage Advisers receive bespoke training on the Shared Ownership process before offering any advice on purchases.  All our advisers are locally based and we are happy to meet you at your home or at a location that suits you, or via Zoom or phone appointment.

Our Mortgage Adviser team is available 7 days a week. This means that you can call us any time to discuss your mortgage or any other matter relating to your purchase.

Shared Ownership Brochure

Please click here to download our shared ownership brochure