I want to find out more about shared ownership

You buy an initial share of the property, usually with a mortgage and deposit, and pay rent on the remaining share. Over time, you may be able to buy more of your home through a process known as staircasing, potentially increasing your ownership to 100%.

The share you buy will depend on the property, the scheme and what is affordable for you.

Initial shares are commonly between 25% and 75%, although some homes may allow you to start with a smaller share, potentially from 10%.

One of the advantages of shared ownership is that your deposit is based on the share you are buying rather than the full value of the property.

For example, if you buy a 25% share of a £400,000 home, you are purchasing a share worth £100,000. A 5% deposit on that share would be £5,000, subject to your mortgage lender’s requirements.

You then pay:

• your mortgage on the share you own;
• rent on the share you do not own;
• any applicable service charge; and
• the usual costs associated with owning and maintaining your home.

The rent you pay on the remaining share, and the way it is reviewed, will be set out in your lease.

Before buying a shared ownership home, you will need to make sure you can afford both the initial purchase and the ongoing costs of living in the property.

You should normally budget for:

• a deposit on the share you are buying;
• mortgage repayments;
• rent on the remaining share;
• service charges where applicable;
• solicitor and mortgage fees;
• moving costs; and
• the costs of maintaining the parts of your home that you are responsible for.

Your exact costs will depend on the property, the share you buy and your individual circumstances.

Before you purchase, an affordability assessment will be carried out to help establish what share you can reasonably afford.

Shared ownership is designed for people who cannot afford to buy a suitable home outright on the open market.

You will generally need to:

• be at least 18 years old;
• have a household income of less than £80,000 a year, or £90,000 a year in London;
• be unable to afford to purchase a suitable home outright;
• be able to afford the deposit and other costs associated with buying the property; and
• demonstrate that you can afford the mortgage, rent, service charges and other ongoing housing costs.

You would not normally be able to own another property when you complete your shared ownership purchase. If you currently own a home, you may still be able to apply provided that it is sold before or at the time you complete your purchase.

Some homes may also have additional eligibility or priority requirements, for example where a local authority gives preference to people who live or work in the area. Any additional requirements will be explained in the property listing.

Being eligible for shared ownership does not automatically mean that every shared ownership home will be affordable for you.

As part of the application process, your income, savings, existing financial commitments and expected housing costs will be considered to establish an appropriate share for you to purchase.

You may also need to speak to a suitably qualified mortgage adviser as part of the process.

You are generally free to make ordinary decorative changes to your home.

Other alterations may require our permission under the terms of your lease, particularly where they affect the structure, exterior, services or other parts of the building.

If you are unsure whether permission is required, please contact us before carrying out the work.

Once you own a shared ownership home, you may be able to buy additional shares over time. This is known as staircasing.

As the share you own increases, the amount of rent you pay on the remaining share will normally reduce.

Depending on the terms of your lease, you may ultimately be able to staircase to 100% ownership.

• Read more about staircasing →