Share to Buy: the home of Shared Ownership

No – this is a common misconception but the ‘shared’ aspect of the scheme simply means you’re sharing ownership of your home with a housing association.

If you decide to buy a Shared Ownership home, you’re effectively purchasing a portion of a leasehold property. Your initial share will be between 10% and 75%, depending on whether you’re buying through the new Shared Ownership model, paying a mortgage on the part that you own and a below market value rent on the remaining share.

Yes – Shared Owners can choose to buy additional shares in their property by ‘staircasing’.

When buying a Shared Ownership home, you will initially purchase a minimum percentage somewhere between 10% to 75%, depending on whether you’re buying through the new Shared Ownership model. Down the line, if you find that your financial circumstances have changed, buyers will usually have the option to buy more shares.

If you choose to buy a higher percentage, your mortgage repayments will increase while the rent you pay will decrease. In the majority of cases there aren’t any restrictions and you can buy 100% of your home – in this instance, you would become the outright owner.

As a home-buying product aimed at helping those who can’t afford to purchase a property on the open market, there are certain requirements that buyers will need to meet to be considered eligible for Shared Ownership.

For example, there are caps on household income which means that you must earn less than £80,000 to be eligible for the scheme – or less than £90,000 if you would like to buy a home in London. The criteria also states that buyers must be at least 18 years of age and do not own another property either in the UK or abroad.

Shared Ownership properties enable you to put down a smaller deposit compared to those required on the open market – buyers will usually need to put down 5% to 10% of the share that they’re buying, rather than the full market value of the home.

On a monthly basis, buyers will be required to pay their mortgage, a subsidised rent and service charge on their home, however, these repayments can work out cheaper than or equal to renting privately in the same area. Other costs to consider when buying a home include solicitor and mortgage broker fees – you can find out more about these costs on Share to Buy.

Share to Buy lists thousands of Shared Ownership homes all across the country – including new build properties and those available through resale.

Shared Ownership is available on a variety of homes including cosy studios, stylish apartments and traditional family homes. Check out our property search tool to start looking for your new home today!