Shared ownership works exactly how it sounds. You buy part of a property, and someone else (usually a council or a housing association) owns the rest. You will also pay a rent to that organisation, on the part of the property that you don’t own.
How does Shared Ownership work?
First, you’ll need a mortgage to buy your share, and there’ll be additional costs to think about (like mortgage fees, stamp duty perhaps; repairs and maintenance and – if you’re in a block of flats – even a service charge).
Shared ownership is usually only available for up to 75% of the home’s full value, to start with. However, most schemes offer the option to reduce the amount of rent you’re paying, as you buy a larger share in the property.
Who can apply for Shared Ownership?
These schemes are designed to help people with lower incomes: up to £60,000 per household (up to £80,000 in London).
How do I get started with a Shared Ownership scheme?
Speak to your housing association or the Housing Team in your local council. Ask if the scheme’s available in your area. You’ll also find more information about Shared Ownership schemes across the country at the Share to Buy website. Or, if you live in London, try the First Steps website, which is part of the Share to Buy scheme.
Co-Ownership Housing – Northern Ireland
Co-Ownership Housing is only available in Northern Ireland. It’s very simple: you use a traditional repayment mortgage to buy between 50% and 90% of the property, and then pay rent on the part of the property you don’t own.
At any time, you can ‘staircase’ your ‘starter share’, which means buying more of the property you don’t own (and reducing the rent you’re paying at the same time). Find out more at the Co-Ownership website.