Shared Ownership Frequently Asked Questions (FAQs)
Shared Ownership allows you to buy a share of a property and pay rent on the remaining share. It’s a more affordable way to get on the property ladder. Find out more on our what is shared ownership page.
You could be eligible if your household earns £80,000 or less (£90,000 in London), you are a first-time buyer, or you used to own a home but can’t afford one now. Find out more about eligibility on our what is shared ownership page.
You buy a share of the home and take out a mortgage for that portion. A monthly rent is then paid to the housing association on the remaining share, along with any service charges.
Yes, this is called “staircasing.” You can buy additional shares in the property, potentially up to 100%, reducing the rent you pay.
In some locations where property values are high, there may be restrictions on how much of the property owners can purchase. This is to help make sure that there will always be affordable homes available in the local area, for local people.
The minimum share can vary depending on the property. It typically starts at 25% but in some cases can start as low as 10%.
Yes, you can sell your share at any time. The housing association usually has the right to find a buyer first, but if they don’t, you can sell it on the open market.
To purchase a shared ownership property, you’ll need:
- A deposit (starting from 5% plus of the value of the share you want to buy)
- A mortgage (loan) for your share
- To cover other costs like legal and survey fees
In some cases, you may also have to pay Stamp Duty which is a tax the government charge on home sales. Please check with your solicitor as you may be exempt.
Each month you’ll pay:
- Your mortgage (loan) for your share
- Monthly rent on the unsold portion
- Any service charges – these cover your buildings insurance, grounds maintenance and admin costs
Yes, but major works may require permission from the housing association. If you’ve increased the value of the property, this could affect your share value when staircasing or selling.
You can sell your share at market value or staircase to 100% ownership before selling it outright.
Yes, all Shared Ownership properties are leasehold, meaning you’ll have a lease agreement and may need to pay ground rent or service charges.
You are usually allowed to rent out a room in the home, but you must live there at the same time. See the property’s key information document for more information.
Yes, you’ll usually need a deposit, but only on the share you’re buying, which makes it more affordable than buying outright.
You cannot keep pets at the home without the Landlord’s prior consent.
No, buildings insurance is included in the service charge for your home.
A service charge is a small payment added to your monthly rent to cover things like your buildings insurance and grounds maintenance, as well as admin costs.
We allocate shared ownership homes in accordance with our First Come First Serve policy.
On average, the sale process takes between 1-3 months. However, this can vary depending on factors such as construction progress and mortgage arrangements which are often beyond our control.
You are responsible for the cost of repairs and maintenance of the home. However, some shared ownership homes come with a £500 reapirs budget which your landlord may contribute towards. Further information about this can be found within the Key Information Document for your property.
New-build homes have a defects liability period which usually lasts for around 12 months after build completion but can vary depending on the contract.