Shared Ownership is an affordable home ownership scheme which makes it easier for buyers to get on the property ladder. Here’s how it works in a nutshell.

Who owns the other share?

You can buy anywhere from a 10 per cent to a 75 per cent share in the property. The rest is owned by the building’s housing association and you will pay rent on this part.

How easy is it to buy more shares?

Buying a bigger share of your home is called staircasing. You will need to approach the housing association that owns the remaining share and provide proof that you can afford it, similar to the process of buying your initial share. It’s important to remember that the value of the extra share you buy is based on a valuation in the current market and not when you originally bought the property.

Can I have a pet?

As most shared ownership properties are leasehold properties there are usually lease restrictions around pet ownership. However, more homes are becoming pet friendly which allows leaseholders to request the authorisation to have a pet from the housing association or the property management company.

Does the service charge amount differ depending on what share I own?

As the sole occupant of the property you are responsible for paying 100 per cent of the service charge.

Can I buy a shared ownership property even though I currently own a home?

Although the shared ownership scheme is targeted at first-time buyers, there are exceptions. If you already own a home you may be able to buy through the scheme, however you will have to sell that property before you can complete on your new home. Further to this you also can’t own any other buy to let properties, please contact us for more information on eligibility.

What are the costs involved in buying a shared ownership property before and after completion?

There are several standard costs involved – our guide to shared ownership breaks them down in more detail. Daily running costs can differ between properties. Once you have found the property you are interested in, we will be able to provide a breakdown of these costs.

What are my responsibilities as a shared owner?

Your core responsibilities are to pay your rent, mortgage and service charges on time, to take care of your property and, if you want to make any non-cosmetic changes to the property, to get permission from the housing association first.

Can I rent out my spare room? 

As a shared ownership buyer you are not allowed to sub-let the property and should only be buying a property suitable for your own needs.

What is the process for selling my shared ownership property?

When selling the property you will need to approach the housing association first. They then usually have an eight-week exclusivity period to find a buyer for your share of the property. The property value is based on the current market values. If the housing association cannot find a buyer in those eight weeks, you are then allowed to sell your property via an agent on the open market – the property can be sold on shared ownership or full ownership.

Further information

Contact Dean Kennedy

Find out more about how shared ownership can work for you