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That's what SHARED OWNERSHIP means
Shared ownership is another way to buy your home. You buy a percentage, and pay rent on the rest. The housing association owns part of it — but you’re living there, you decorate it, and you decide when to sell. Buying a percentage means a smaller deposit and smaller mortgage. It’s a sooner first step on the ladder for lots of people. Usually, you can also carry on buying shares, to own it 100%.
You’re probably still wondering about shared ownership’s features, benefits and how it could work for you. We’ve gathered up loads of frequently asked questions.
Shared ownership is an option for lots of people — probably more than you think. A smaller deposit makes it easier for first-time buyers to get on the ladder, and it's an easier way for separated couples to buy again with their individual share of joint assets.
Shared ownership is also a good option for retirees, or those who want to free up equity without losing the security of owning a home.
No. Contrary to its confusing name, you're not sharing the house with other flatmates or buying it with someone you don't know.
Shared ownership means you own a share of the property, and a housing association owns the remaining share.
If you want to buy with a partner, friend, or sibling, that's totally fine. But your total combined income when you submit your application must be below £80k (£90k if you're in London).
You pay for a percentage share between 10% and 75% of the home’s full market value. You enter into a lease agreement with the landlord, and agree to pay rent to the landlord on the remaining share. Most shared ownership homes require an initial share purchase between 25% and 75%. A limited number of homes are available for sale under the new model for shared ownership (from 10% shares rather than the previous 25%) in 2021 with more becoming available from 2022 onwards, however homes on the more readily-available version of shared ownership are available to purchase now.
You'll have a lease, which is essentially the contract for the share you've bought. It means you've got the right to keep your home for a certain number of years (it will depend which type of shared ownership you purchase your home with but the term could be up to 990 years), but the land belongs to someone else. Your lease also sets out how much you need to pay each month, your responsibilities while living there and all the details of your agreement with the housing association. Make sure you go through it and ask lots of questions. Your solicitor can help you with this.
Shared ownership properties tend to be either new-builds offered by housing associations, or resales of existing shared ownership properties. There are a range of new properties available, which usually means fewer future repairs, and the chance to move in straight away without having to replace any ancient boilers.
Housing associations have introduced safe systems of work to comply with government guidance for selling homes during this period. Processes can now be completed online, some homes can be viewed virtually and some ‘contactless’ sale completions can take place where appropriate.
When online processes simply aren’t an option, as long as social distancing measures are in place, you will be able to view properties and move home in accordance with the current Government guidelines. This means that you can still find out if shared ownership is right for you and then go on to view and purchase a shared ownership home here.
Whatever your next step is, always contact the housing association and mortgage lender to learn more about what precautions they may have in place and how they can best guide you on your journey.