Resale Shared Ownership Homes
Shared Ownership resales are pre-owned homes that the current owner now wishes to sell on. By buying a resale home, you are still buying through Shared Ownership. Read our guide below to find out what it means to buy a Shared Ownership resale home.
What is a Shared Ownership Resale property?
Resale properties are homes that a current owner bought through Shared Ownership and now wishes to sell. The principle is the same as buying a new-build through Shared Ownership but you must purchase at least the share that the seller currently owns. For example, if the current owner has staircased to 40% ownership, then you will need to buy atleast the same share value.
Within new build developments, Shared Ownership is sometimes only available to people living or working in the borough where they are looking to buy. But that's not the case with Resale properties, which makes moving to a new area easy to do.
We often sell our new build properties ‘off-plan’, i.e. before they are finished. With Resale homes, you can view the exact property you are looking to buy and move into an area where the neighbours are already settled and there is a more established community, great for if you need to borrow some sugar!
What are the benefits of buying a Resale home?
If you buy a Resale home through Shared Ownership:
✔ You will own part of the value of your home, rather than paying rent with no return.
✔ Like Shared Ownership, you will often need a much smaller deposit compared to buying on the open market.
✔ Your monthly mortgage and rent can work out cheaper than buying outright, and often not much more than renting.
✔ You can buy more shares (Staircasing) or sell your share and move if you want to in the future.
✔ You are not buying off-plan meaning you can view the exact home as it is and may have been improved by the current home owner.
✔ You may be joining a more established community compared to moving into a new development.
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Who can buy a Resale property?
Resale homes have the same eligibility as new-build Shared Ownership homes;
✔ You must be aged 18 or older.
✔ Your annual household income if buying in London must be less than £90,000 (£80,000 outside of London).
✔ You will normally be a first-time buyer or be in the process of selling your home. You must not own any other property at the time you buy your new home.
✔ You should not be able to afford to buy a home on the open market.
✔ You must be able to show you are not in rent or mortgage arrears and demonstrate a good credit history.
*Eligibility may vary depending on property size and whether there are any criteria imposed by the local authority.
Buying a resale home with Peabody New Homes
Shared Ownership resales are part of the part buy/part rent scheme, which is partly funded by the government and aims to help first-time buyers.
Shared Ownership properties are designed as a stepping stone towards completely owning your own home, allowing you to buy as much as you can afford. Buying a resale property makes you an owner-occupier, not a part tenant and you'll need to buy at least the current owner’s share on the existing lease.
Your lease is a legal document that proves you own part of your home and sets out certain conditions including how often your rent and service charge is reviewed, selling or buying further shares and your rights and responsibilities as owner-occupier.
As you own the lease on your property you will become a ‘leaseholder’ and also the ‘landlord’; and will have the same rights and responsibilities as a full owner-occupier.
If you decide to buy the remaining share of your home by 'staircasing', you will own your home outright and pay no rent. If you own a house, your solicitor will arrange for you to get the freehold (in most circumstances) like any other house owner. If you own an apartment, you’ll remain a leaseholder like any other apartment owner. This is because if your home is in a block of apartments, your lease sets out responsibilities for use and maintenance to all shared areas.
Search For Resale Homes by Peabody New Homes
We have a selection of resale homes available throughout London and the Home Counties. Take a look at our available homes and register your interest to be invited to view.
Find out what our homeowners say
Buying a first home, getting married and preparing for the arrival of a baby are all busy life events. Raph and Jaye would know, after experiencing all these milestones simultaneously. They purchased a 25% share of a two-bedroom apartment at The Switch in Wimbledon, with a £42,600 deposit.
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After spending years renting in London, wealth manager Aroma Khan purchased a 30% share of a three bedroom apartment in Queensbury, northwest London. She had no idea that, just two years later, she would be staircasing her way up to 100% ownership with a friend.
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Luca moved to London from Italy to work at a university. After a few years renting in London, Luca was able to purchase a 50% share of a bright two-bedroom, two-bathroom home through Shared Ownership at Arden, in Lewisham.
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Shared Ownership New Build homes Vs Resale homes
Shared Ownership is a home-buying scheme designed as a more affordable way to get onto the property ladder. Shared Ownership is available on new build and second-hand (resale) homes, but which is right for you?
Shared Ownership Eligibility
Read our complete guide to Shared Ownership eligibility to find out whether you are eligible to buy through the affordable housing scheme.
Shared Ownership Pros and Cons
Are you considering Shared Ownership but not sure if it's right for you? See all the pros and cons to buying a home through Shared Ownership.