What is shared ownership?

 

Shared ownership can be a great way to get onto the property ladder as it allows you to buy a share of a home that you can afford if full property ownership is out of reach.

Shared Ownership is a part-buy, part-rent government-backed scheme which allows buyers who meet the eligibility criteria to secure a mortgage to purchase a share of a home (usually between 25% and 75%) and pay rent on the remainder to the co-owning housing association or private developer that own the building. The rent you pay on the remaining share is charged at a discounted rate.

The properties are usually leasehold and you will therefore have to pay a monthly service charge and potentially contribute to major maintenance works.

You then have the option to ‘staircase’ your share in your home, this is the process of buying more shares, or even buy the whole property in the future. Shares can be bought in 10% increments, which will in turn reduce your rent, though you would to check the full detail with the provider as some properties will have a maximum share available.