Shared Ownership (Part Buy Part Rent)
What is Shared Ownership?
Shared ownership is an affordable home ownership scheme which involves part owning, part renting a property. It is designed for people who can’t afford to buy a home outright on the open market. It is available through housing associations and new build and existing shared ownership properties, known as resales, are available through shared ownership. It is the most established affordable home ownership scheme, and is available throughout England.
The most established affordable housing scheme is shared ownership, whereby you part buy part rent property from a housing association. The scheme is sometimes referred to as ‘part own part rent’ because you literally own part of the property and pay a rent on the remainder that is subsidised so as to be affordable.
How does Shared Ownership work?
· Buy a share in a property, usually ranging from 25% to 75%
· Pay below-market rent on the remaining share owned by a housing association
Although your maximum share can sometimes be capped, with most shared ownership homes you can 'staircase' to full ownership in the future (i.e. buy more shares in the property up to 100% ownership). There is more information about staircasing here.
The rent you pay can be up to 3% of the association's share of the property value. Shared ownership properties are leasehold properties, meaning you will own the lease on them for a fixed period of time, typically 99 years.
You also have to pay a service charge for the property, which is usually charged on a monthly basis.
What properties are available for part rent part buy schemes?
You cannot purchase any property on the open market. Shared ownership housing is generally restricted to properties owned by a housing associations.
Most part buy part rent properties are new build and the only national scheme for part owned houses on the second hand market is where an existing owner sells their share on to a new owner in a process known as a resale.
You can search for housing association shared ownership properties, including part buy part rent flats and houses, using our shared ownership property search tool.
Selling your shared ownership home
You can sell your shared ownership property at any time but the housing association has the right to find a buyer for your home, if it still owns a share of it and to buy it back first.
Shared Ownership mortgages
The mortgage team at Share to Buy ltd has significant experience in arranging mortgages for shared ownership schemes, and has access to the main part buy part rent mortgage lenders. Find out what you can borrow and the potential cost of a shared ownership mortgage using our shared ownership mortgage calculator tool which enables you to search for shared ownership mortgages from across the market.
Rent to buy
Rent to buy properties make another important affordable housing option. With the rent to buy scheme you can rent a property at a below-market rate, enabling you to save towards a deposit so that you can eventually purchase that property. Thus, rent to buy schemes offer a way to part own houses and flats after a period of initially renting them – hence, rent to buy housing is sometimes called ‘try before you buy’. You can find both rent to buy flats and rent to buy houses on the Share to Buy property website.
5th December 2016
While you are looking for a suitable property and going to viewings, there is one task that you can sensibly start, so that when you have been offered a property, your mortgage application is not delayed. All mortgage applications will require that you provide documents as part of the process so start getting your documentation ready.
7th November 2016
We've teamed up with WhatHouse? to bring you Your Guide to Shared Ownership. Inside you’ll find all you need to know about the scheme: whether you are eligible, the process of finding and purchasing a Shared Ownership property, the pros and cons of Shared Ownership and much, much more.
20th October 2016
Read our latest blog from our Mortgage Expert Stephen Dwelley. In this blog Stephen answers the frequenlty asked questions from first time buyers trying understand how much they can borrow for a mortgage and what is affordable.
16th September 2016
WHAT IS SHARED OWNERSHIP?
NATIONAL CAMPAIGN DISPELS MYTHS SURROUNDING AFFORDABLE HOUSING PRODUCT
Confused by shared ownership? Think it’s just for key workers? Or just for first time buyers? Think again. A week-long national campaign is returning for its fourth year to raise awareness of the more affordable alternative home ownership product, starting on Thursday 15th September, to help homebuyers understand how they could be eligible to secure a property with this pioneering scheme. Read on
In order to find out if you're eligible to apply for a property please check the eligibility criteria found on the property page itself, and for more information please contact the housing provider who is advertising the property. If you haven't done so already, you must register for a user account and be logged in to have access to housing provider phone numbers.