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With Shared Ownership, you buy a share of your home – as much as you can afford – starting from as little as 25 per cent and rising up to 75 per cent of the property’s value. You then pay subsidised rent to us on the remaining share of your home. When you wish to, you can buy a bigger share of the property until you own it outright.
Shared Ownership allows you to buy a new build or an existing property through one of our resale programmes. The deposit required for a Shared Ownership mortgage is a lot lower than if you were purchasing the property outright. This is because it is calculated on the initial share you are purchasing, rather than on the full value of the property.
Mortgages for Shared Ownership are available with as little as 5 per cent of the share value. However, the bigger your mortgage deposit, the more favourable your mortgage interest rate is likely to be.
To be eligible for Shared Ownership you will need to meet certain requirements set by Homes England and the GLA. You could be eligible for Shared Ownership if:
In some cases with Shared Ownership, you must be able to show a connection to the local area where you would like a buy a home. For instance, you might currently live and/or work in the area, or you grew up in the area and have family nearby.
Please note the minimum incomes and eligibility requirements may vary for each scheme.
Whether you choose to buy 25 or 75 per cent of your home’s value, you will need savings for a mortgage deposit. This deposit needs to be at least 5 per cent of the share value that you purchase. For example, if you buy a 25 per cent share of a property worth £200,000 and you need a mortgage to cover this, you will need to have at least a £2,500 deposit.
You will also need between £3,000 and £5,000 to cover Stamp Duty, solicitor fees and any other moving costs when you start the process.
Monthly costs once you’re in your new home will include: mortgage payments, rent and service charges. Shared Ownership rent is different to market rent; it is usually calculated at 2.75 per cent of the remaining unpurchased share. It also rises each year by the rate of inflation plus half a per cent.
If you would like to know more about shared ownership and our affordability checks, get in touch with our team and we’ll talk you through your options.
A resale property is a Shared Ownership property that has become available to buy from its current owner. You can either buy the share that is for sale, or you can buy more if you can afford to.
If you are thinking about purchasing a Shared Ownership property, contact us to discuss what options are available to you and find out what the next steps are.
We will ask you to take a free affordability assessment with an independent mortgage advisor and will talk you through each stage of the process.