How to step onto the property ladder later in life
There’s no age limit on buying a home. In fact, the average age of UK first time buyers has crept up over the past couple of decades, reflecting the challenges many people face when trying to purchase a property.
So, if you find yourself in mid or later life navigating homeownership schemes, you’re not alone. Maybe you had other priorities when you were younger, or it wasn’t financially feasible, or perhaps you once owned a property but don’t currently and want to step back onto the ladder, and now you’re exploring your options. Either way, Older Persons Shared Ownership (OPSO) could be the solution you need to support your home-buying journey.
What is Older Persons Shared Ownership?
OPSO is a government-backed buying scheme specifically designed for people aged 55 and over. It’s similar to Shared Ownership in that it lets you buy a share in a leasehold home and pay a below-market rent to a housing association on the remainder. Other than the age criteria, the main difference is that the maximum share you can own is 75% rather than 100%. However, once you reach this threshold, the remaining 25% share is rent-free.
Why OPSO is a great option for over 55s
With OPSO, you’ll typically pay for your share with a mortgage or savings, with the option to increase your share up to 75% through a process called ‘staircasing’. As the rent on the share you don’t own is subsidised, your monthly costs can be lower than buying outright or renting privately.
Buying your first home
OPSO can help you become a homeowner if property prices on the open market are outside of your budget. You could be eligible for OPSO if you meet the following eligibility criteria:
- You’re aged 55 years or older. However, some OPSO developments will allow a couple where the main applicant is 55 but a second applicant is 50 or older.
- Your maximum household income is less than £90,000 per annum in London or £80,000 outside of London.
- You can demonstrate that you are unable to purchase a suitable home on the open market but can afford the costs associated with OPSO, including mortgage payments, rent, and service charges.
- You don’t already own a home; however, if you do, you’ll need to sell any existing property you own before purchasing through the scheme.
- You’ll need to be able to secure a mortgage or have sufficient savings to pay for your share in full if you’re retired.
- You must not have any outstanding credit issues, such as unsatisfied defaults or county court judgements.
Home downsizing
There are various reasons why you may want to downsize your home, especially regarding your finances. It’s a popular strategy for releasing equity and contributing to a reduced cost of living, as the energy bills for a smaller home can be cheaper than a larger property due to lower usage, according to Ofgem. Or perhaps you’re considering downsizing for retirement, so you can live a lower-maintenance lifestyle in your golden years.
Relocating
It’s never too late to relocate. You may wish to move somewhere new to be closer to loved ones or to be better served by amenities or services you might increasingly rely on if you’re in a later stage of life. OPSO homes can be found in housing developments and retirement communities, offering different options to suit your lifestyle.
OPSO location and lifestyle options
Older Persons Shared Ownership homes are available in locations across England, from London to Yorkshire. Whether you want to live in the city, the countryside or by the coast, you can expect to find properties available through the scheme on Share to Buy. Get your home-buying journey underway using our property portal.
