Shared Ownership
An Affordable Route to Homeownership
For many aspiring homeowners, saving a large deposit and securing a mortgage for the full value of a property can be challenging. Shared Ownership offers an alternative route onto the property ladder by allowing eligible buyers to purchase a share of a property while paying rent on the remaining portion.
This scheme has helped thousands of people take their first step towards homeownership with a smaller deposit and lower borrowing requirements.
Understanding How Shared Ownership Works
Who May Be Eligible for Shared Ownership?
Shared Ownership is designed to help eligible buyers access homeownership through a more affordable route. While criteria may vary, the scheme is commonly available to the following groups:
- First-time buyers looking for a more affordable way to get onto the property ladder without needing to purchase a home outright.
- Previous homeowners who no longer have the financial means to buy a property on the open market and are seeking an alternative route to homeownership.
- Individuals and families with lower household incomes who meet the scheme’s eligibility requirements and may benefit from reduced deposit and mortgage costs.
- People searching for a more accessible and affordable path to owning a home, particularly those who find it difficult to secure a mortgage for the full value of a property.
Eligibility & Shared Ownership Criteria
Lenders and housing associations assess a range of factors to determine whether you qualify for a Shared Ownership scheme. Although requirements can vary between providers, the following criteria are commonly considered during the application process.
Please note that meeting these eligibility criteria does not guarantee acceptance, as final approval is subject to the individual requirements of the lender or housing association.
Your household income and ability to manage ongoing mortgage and rental payments.
The amount of savings you have available to contribute towards your share of the property.
Your credit profile and financial track record, which may influence your application.
Your employment situation and the stability of your income.
Whether the property meets the specific requirements of the Shared Ownership scheme.
Additional criteria set by the housing association or lender, which may differ between providers.
Staircasing – Increasing Your Share
Staircasing is the process of purchasing additional shares in your Shared Ownership property after your initial purchase, allowing you to gradually increase your ownership over time. Depending on the scheme and the property, you may be able to buy further shares and, in some cases, eventually own 100% of the home. As the rules, costs, and availability of staircasing can vary between housing associations and properties, it is important to review the specific terms of your scheme before proceeding.
Costs to Consider
Before purchasing a property through Shared Ownership, it is important to understand the different costs that may be involved. In addition to your deposit and mortgage repayments, there may be other expenses to consider throughout the buying process. Having a clear picture of these costs can help you assess affordability, plan your finances with confidence, and prepare for a smoother home-buying journey.
- Deposit
- Mortgage repayments
- Rent on the remaining share
- Service charges (where applicable)
- Legal fees & Valuation fees
- Moving costs
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FAQs:
Shared Ownership is a government-backed affordable housing scheme that allows eligible buyers to purchase a share of a property while paying rent on the remaining share owned by a housing association.
You purchase a percentage share of a property and take out a mortgage on that share. You then pay rent on the remaining share owned by the housing association. Over time, you may be able to buy additional shares through a process known as staircasing.
Eligibility requirements may vary, but Shared Ownership is commonly available to:
• First-time buyers
• Previous homeowners who can no longer afford to buy outright
• Individuals and families who meet income requirements
• Buyers who do not currently own another property
Scheme rules may vary depending on the provider and location.
Yes. Shared Ownership is one of the most popular affordable homeownership options for first-time buyers who may not be able to purchase a property outright.
The deposit is usually based on the share you are purchasing rather than the property’s full value. This means the amount required may be significantly lower than when buying a property outright.
Yes. You will usually make mortgage repayments on the share you own while also paying rent to the housing association on the remaining share.
Staircasing is the process of purchasing additional shares in your property after your initial purchase, allowing you to gradually increase your ownership percentage over time.
Many Shared Ownership schemes allow buyers to staircase up to 100% ownership, although some properties may have restrictions. The rules will depend on the housing association and the property.
Yes. Shared Ownership properties can usually be sold, although the housing association may have specific procedures or nomination periods that must be followed.
Yes. Shared Ownership homeowners may be able to remortgage their property, subject to the requirements of both the lender and the housing association.
In many cases, yes. Shared Ownership schemes often allow homeowners to purchase additional shares as their financial circumstances improve.
Yes. Self-employed applicants can apply for Shared Ownership mortgages, although lenders may require additional documentation such as accounts, tax calculations, and bank statements.
Some lenders may consider applications from borrowers with previous credit issues. Available options will depend on the nature of the credit issue, affordability, and individual lender criteria.
Costs may include:
• Deposit
• Mortgage repayments
• Rent on the remaining share
• Service charges
• Legal fees
• Valuation fees
• Moving costs
It is important to consider all associated costs when assessing affordability.
This will depend on the terms of your lease and the housing association’s requirements. Certain alterations may require permission before work can begin.
Shared Ownership properties are generally intended to be your primary residence. Renting out the property may not be permitted without approval from the housing association.
Lenders and housing associations may request:
• Proof of identity
• Proof of address
• Payslips
• Bank statements
• Employment details
• Proof of deposit
• Tax calculations and accounts (if self-employed)
Requirements will vary depending on the provider and lender.
The timeline will vary depending on the property, housing association, mortgage lender, and legal process. In many cases, the purchase may take around 6 to 12 weeks from application to completion.
For many buyers, Shared Ownership can provide an affordable route into homeownership by reducing the deposit and mortgage required. Whether it is suitable will depend on your personal circumstances, long-term plans, and affordability.
The most suitable mortgage will depend on your deposit, income, affordability, property choice, and long-term homeownership goals. Reviewing all available options can help ensure you choose a mortgage that best suits your circumstances.