Shared Ownership Eligibility
Am I eligible for Shared Ownership?
What is the eligibility criteria for Shared Ownership?
For those looking to buy a Shared Ownership home, there are some eligibility requirements that must be met. The general eligibility criteria for Shared Ownership is as follows:
- You must be at least 18 years old.
- Outside of London your annual household income must be less than £80,000.
- In London, your annual household income must be less than £90,000.
- You cannot own another home. Shared Ownership purchasers are often first time buyers but if you do already own another property (either in the UK or abroad), you must be in the process of selling it.
- You should not be able to afford to buy a home suitable for your housing needs on the open market.
- You must show you are not in mortgage or rent arrears.
- You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home.
Additionally, you will generally need between 5-10% of the equity share that you’re purchasing as a deposit, and should have access to at least £4,000 to cover the other costs of buying a property. This is a guideline figure and the actual amount may vary. For more information, check out the costs associated with buying a Shared Ownership home.
Who is prioritised for Shared Ownership homes?
While Shared Ownership aims to help first time buyers take those first steps on to the property ladder, the scheme is actually available to anyone (including second steppers, upsizers and downsizers) as long as they meet the eligibility criteria. In 2016, the government removed all priority groups where there is an under-supply of Shared Ownership homes, with homes becoming available on a first come, first served basis to applicants that met the relevant eligibility and affordability criteria.
However, military personnel will be given priority through government funded Shared Ownership schemes, and in circumstances of under-supply of Shared Ownership homes, priority would be given to serving military personnel and former members of the British Armed Forces discharged within the last two years.
Also with some developments, local authority planning permissions may require that preference is given to applicants that already live or work in the area; this will be put in place by the local council and not the housing association.
Please note: The housing association who are selling the property may also have their own eligibility criteria, so it’s always worth checking what their requirements are too.
For more information you can visit our article index, or start your property search on Share to Buy today!
Search our Guides and FAQs
Is there a maximum income threshold for Shared Ownership?
arrow_downwardIf you are looking to purchase a Shared Ownership property in England, the maximum household income is £80,000. In London, your annual household income must be less than £90,000.
The maximum household income is the income of any member of the household involved in the purchase. This means if you are buying with a partner, the household income would include both of your salaries and any other income you receive.
For further information about the costs associated with Shared Ownership, please visit our guide here.
Is there a minimum income requirement for Shared Ownership?
arrow_downwardThere is no set minimum income allowance for Shared Ownership. Each property will have its own valuation and the housing association will determine the minimum income required for that property to be affordable to people earning under the maximum allowance threshold. If you have a large amount of cash to put down on a property this may make the minimum income more affordable.
For further information about the costs associated with Shared Ownership, please visit our guide here.
I have a poor credit history - would I be eligible for Shared Ownership?
arrow_downwardIn order to buy a home, you would need to be able to take out a mortgage. If your credit history stops you from doing this, then you would not be able to proceed.
However, we would recommend speaking to an independent mortgage advisor who can assess your case and outline your budget to help you in your search for a home. Credit score is taken into consideration and you’ll get a better understanding of this during your assessment.
To discuss your options, you may wish to contact the firms on our Mortgage Broker Panel.
I'm in arrears - can I still buy a Shared Ownership home?
arrow_downwardWhen referring to rent arrears, this is the legal term for a debt that is overdue or missing.
You could still be eligible for Shared Ownership if you are renting a property – given than you meet the eligibility criteria – but not necessarily if you are behind on rent payments in your current home. If you are in arrears, we would recommend speaking with a financial advisor to discuss your options.
For more information about the scheme, please visit our Shared Ownership index.
I'm self-employed - would I be eligible for Shared Ownership?
arrow_downwardAs long as you can show at least three years of self-employed accounts – and providing your income is sufficient – you should be able to obtain a mortgage. You should seek independent financial advice about suitable mortgages and about managing the ongoing costs of home ownership if your income varies from year to year.
For further information about the costs associated with Shared Ownership, please visit our guide here.
I'm retired - would I still be eligible for a Shared Ownership home?
arrow_downwardAs long as you meet all of the eligibility criteria then you can still purchase a Shared Ownership home during retirement. In most circumstances, you would either need to pay for your share in cash or the mortgage you’re getting would be based on the pension that you receive.
For buyers over the age of 55, there is also the option of buying through the Older Persons Shared Ownership scheme.
I currently receive benefits - would I eligible for Shared Ownership?
arrow_downwardBenefits are generally not included as income when assessing your affordability. Some mortgage lenders will accept benefit income if it is permanent, meaning that it’s not subject to review, but there does usually have to be some earned income as well.
For further information about the costs associated with Shared Ownership, please visit our guide here.
Can I buy a Shared Ownership home with family, friends or strangers?
arrow_downwardThere is no requirement that joint purchasers of a property are either family members or in a relationship. However, apart from any personal considerations, it would be sensible to have a robust legal agreement drawn up by your solicitor, covering such points as what happens if one of you is unable to maintain the financial contributions or wishes to leave the arrangement.
Remember that with a joint mortgage, all parties are equally liable which means that if one of you cannot or will not pay, the other is legally responsible for the whole amount.
To discuss the legal aspects of buying a Shared Ownership home, you may wish to contact the firms on our Solicitors and Conveyancing Panel.