- Shared Ownership FAQs
- Shared Ownership Eligibility
- Shared Ownership Pros and Cons
- Shared Ownership Purchase Process
- Cost of buying a Shared Ownership home
- Shared Ownership homes near me
- Shared Ownership New Build homes Vs Resale homes
- Shared Ownership Mortgage Lenders
- What are your options after buying through Shared Ownership?
- Shared Ownership vs renting
- Eligibility Check
Have you heard about Shared Ownership but not quite sure what it means? Read our guide as we demystify some of the common misconceptions when it comes to buying a home with Shared Ownership.
Does Shared Ownership mean that I have to share my home with someone?
Not at all! The 'shared' element to Shared Ownership is because you are sharing the ownership of the home with a housing association like Peabody.
You will buy a percentage of the home (usually 25% initially) and pay rent on the percentage you don't own to the housing association. You can however 'staircase' and buy more shares until eventually you own 100%! This means you will own the home outright.
You don't have to live in your Shared Ownership home with anyone else, although you can still buy jointly with someone else, say a partner or friend if you choose to.
Guide to Shared Ownership
Is Shared Ownership only available to first-time buyers?
Shared Ownership is an affordable housing scheme designed to help people buy a home that they otherwise wouldn't have been able to afford on the open market.
Traditionally it is used by first-time buyers looking to step onto the property ladder who have previously either been living at home or renting privately.
However, Shared Ownership isn't only available to first-time buyers. As long as you meet the basic eligibility criteria for Shared Ownership (i.e. have a household income under £90,000) then you can buy. You just need to ensure that you do not own another home or you’re in the process of selling your current property.
Therefore Shared Ownership is a great option for you, even if you aren't a first-time buyer.
Shared Ownership Eligibility
Is it more expensive to buy through Shared Ownership?
More often than not, Shared Ownership usually works out as being less than renting when it comes to monthly outgoings.
With Shared Ownership, you will pay a mortgage on the percentage of the home that you own, and then a subsidised rent on the percentage you don't own. Along with a service charge, this makes up your total monthly outgoings which is often less than renting privately and not much more than buying a home outright, but with a much smaller deposit!
You can 'staircase' and buy more shares in your home too which will increase your mortgage costs but reduce the rent you pay until you eventually own 100%.
Cost of buying a Shared Ownership home
Is it difficult to get a Shared Ownership mortgage?
In short, No. Whilst not all lenders provide mortgages for Shared Ownership, the majority will including the largest mortgage lenders in the market. Shared Ownership has become one of the main affordable ways to buy a home and has helped thousands of UK buyers step onto the property ladder, so most lenders are able to offer a mortgage on a Shared Ownership property.
Being able to get a Shared Ownership mortgage ultimately depends on your affordability, which looks at how much savings you have as well as your annual income, and outgoings.
When you are looking to buy a Shared Ownership home, you will be asked to complete an affordability assessment with an Independent Mortgage Advisor to work out what you can realistically afford to buy. The Independent Mortgage Advisor will also be able to help show you what mortgages are currently available to you and work out the best rates available.
Shared Ownership Mortgage Lenders
Is it difficult to sell a Shared Ownership home?
Shared Ownership was designed as a more affordable way to getting onto the property ladder and was meant as a stepping stone to full home ownership. This could be in the form of staircasing up to 100% or by selling your home and buying on the open market.
When it comes to selling a Shared Ownership home, it's not that different to selling privately. Usually you would sell through the housing association you bought through but more often than not you also have the option to sell via an estate agent if you choose to.
The housing association would still list your property on various property portals and you would conduct property viewings with potential buyers. The only difference is you will need to sell your home to someone who meets the Shared Ownership eligibility criteria and they must buy at least the share you currently own.
Guide to selling your home
Can I decorate a Shared Ownership home?
When buying a Shared Ownership home, you will become a owner occupier which effectively gives you the same rights as a home-owner. This means that unlike renting privately, you are completely free to decorate your Shared Ownership home as you wish.
That means if you like a contemporary finish, an art deco style or more brutalist design, you can decorate however you please which is a major attraction to Shared Ownership.
More often than not, the Shared Ownership home will be a new-build home, which will be a blank canvas to really stamp your mark on the place!
There are some limitations when it comes to major adaptations and structural changes like knocking down walls, which will require the approval from the housing association you have purchased from.
Search Shared Ownership Homes
Discover a range of new-build Shared Ownership homes throughout London and the Home Counties.
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.
READ ALL THE STORIES
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.
READ ALL THE STORIES
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.
READ ALL THE STORIES
Shared Ownership vs renting
Not sure whether renting privately or buying a home through Shared Ownership is right for you? Read our complete guide as we compare the benefits of buying with Shared Ownership and renting privately.
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 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.