Shared Ownership is an affordable home ownership scheme which makes it easier for buyers to get on the property ladder. It allows you to buy a part share in a home and pay a subsidised rent on the remaining share. You begin by buying a minimum 10% to a maximum 75% share of your home and your mortgage is just on the share you own. A smaller mortgage means a smaller deposit – and you don’t need as high an income to be approved.

The combined monthly cost of the mortgage on your share of the home and the monthly subsidised rent on the share that you don’t own usually works out cheaper than buying the traditional way. You can increase your share in the home at any time until you own it outright.

Shared Ownership has been around for 40 years and with a government stamp of approval, it’s a tried and tested route to homeownership.

Demystifying Shared Ownership

Buying more shares

Whenever the time is right, you can buy more of your home, and this is called ‘staircasing’. You buy extra shares at the market value of your home when you buy them, not at the original price of your home. Your housing provider will be able to tell you more about how buying extra shares works with their properties.

Selling your home

Want to move on? It’s easy as you can sell at any time. In the first instance, your housing provider will try to find an eligible buyer for you. This usually takes about eight weeks, and your lease will set out the costs. If your housing provider hasn’t found a buyer, you can sell your home through an estate agent, paying the usual fees. The buyer will need to qualify for a Shared Ownership home and be approved by the housing provider.

Your investment

Your share in your home is an asset, so if your home has increased in value since you bought it, you will get more for your share than you paid. If the value has decreased, you will get less.