At a time where it’s harder than ever to land your first home, it’s no surprise that many first-time buyers are drawn to Shared Ownership. Offering a more affordable route to the property ladder, Shared Ownership is a form of home ownership that allows you to buy a small share of your home, while renting the remainder that you don’t own.
Sounds exciting, right? You might love the idea of Shared Ownership, but before you can enjoy the perks, you need to work out if you are eligible. Looking for guidance? We’ve rounded up everything that you need to know about Shared Ownership eligibility:
Am I eligible for Shared Ownership?
If you want to buy a Shared Ownership home, you need to ensure that you fulfil the following criteria:
- Income: The buyer must have a household income that is less than £80,000 per year, or £90,000 per year in London
- First-time buyers: The buyer must not have previously owned a property or have an interest in any other property
- Local connection: The buyer must have a local connection to the area where the property is located. This can include already living in the area, working in the area, or having family in the area.
- Good credit: The buyer must have proof of a good credit history and be able to obtain a mortgage.
- Occupancy: The buyer must intend to occupy the property as their main residence.
One bedroom apartment at Valley House, Greenwich available with Shared Ownership
Who gets priority for Shared Ownership?
Shared Ownership is aimed towards people that need extra support to get onto the property ladder. In other words, if you are able to buy a home outright on the market, you won’t be prioritised for the scheme. However, this doesn’t entirely rule out people who have bought a home before - as long as you are in the process of selling.
Beyond first-time buyers, Shared Ownership properties are prioritised for military personnel, key workers and people with disabilities.
Read our Shared Ownership myths dispelled article
What kind of homes can I buy using Shared Ownership?
One of the biggest benefits of buying through Shared Ownership is that you get to choose from some of the best quality homes on the market. Most of them are new build homes that come with the latest in fixtures and appliances. So as well as saving on the home you buy, you’ll also get to enjoy a premium quality of living.
Stunning bedroom at Limebrook, Maldon available with Shared Ownership
Can I afford Shared Ownership?
Shared Ownership might be a more affordable way to buy a home, but you still need to make sure you pass the affordability checks. Shared Ownership affordability ultimately comes down to what home you go for and your household income. Generally, the monthly cost of your home should be more than 40% of your household income.
When assessing your affordability, don’t forget to consider the added costs of buying a home. Depending on what housing provider you buy with, you could be made to pay additional costs like service charge and ground rent - this could bump up your house price by as much as £4,000. If you think it will be a bit of a squeeze to manage your monthly repayments, it’s best to wait until you are fully ready.