Shared Ownership

Shared Ownership gives first time buyers and those who do not currently own a home the opportunity to purchase a share in a new build or resales property. 

Shared Ownership properties can be houses and flats, and are ‘leasehold’ properties, making shared owners ‘leaseholders’. This is because the shared owner buys a share in the property, and not the ‘freehold’ which the Council will own as the 'freeholder'. 

Shared owners only pay a mortgage on the share they own but will also pay a subsidised rent to the Council on the remaining unowned share and a service charge. Because shared owners only require a mortgage for the share they own, the amount of money required for a deposit is usually lower compared to purchasing a property outright, thereby making it a more affordable route to home ownership for some households. 

Shared owners can increase the share they own in the property known as ‘staircasing’, and in most cases they can staircase to 100% ownership. When a shared owner owns 100% of the property, they will no longer pay rent, just their mortgage and any relevant service and ground charges.

Why buy a Shared Ownership property?

For some, Shared Ownership is an alternative and more affordable home-buying product who would like to own their home but can’t afford to buy on the open market. The costs of Shared Ownership is usually lower than other housing options for several reasons: 

• You can start with as little as 10% share on the new Shared Ownership model, or 25% if it is the old Shared Ownership model. 

• Your deposit will usually be somewhere between 5-10% of the share you are buying, not the full market value of the whole property. 

• The rent paid on the unowned share is charged at 2.75%, usually less than the open market rate. 

• Stamp Duty Land Tax (SDLT) can generally be deferred until your share reaches 80%.