What is a shared ownership scheme?

Shared ownership is a government-supported initiative which helps people, often first time buyers, to get onto the property ladder. There are a number of other affordable housing options available and these are outlined at www.helptobuy.org.uk.

To help uncover some of the common misconception about Shared Ownership, read the busting myths on shared ownership article courtesy of home focus magazine.

Who can buy through a shared ownership scheme?

If you can’t quite afford the mortgage on 100% of a home, Shared Ownership offers you the chance to buy a share of your home, usually between 25% and 75% of the home’s value, and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to, this is called ‘staircasing’.

You could buy a home through Shared Ownership with us if:

  • your household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London
  • you are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.
  • With Shared Ownership you can buy a newly built home or an existing one of our resale properties. You’ll need to take out a mortgage to pay for your share of the home’s purchase price, or fund this through your savings.

What is staircasing?

As a shared owner, you are likely to have the right to purchase further shares in your home.  This is commonly known as ‘staircasing’.

This process enables you to own a greater proportion of your home. The greater the share you buy in your home, the less rent you will pay. If you staircase to 100% you become an outright owner.

If you would like more information on staircasing, we would be happy to discuss your options. We can also put you in touch with an independent mortgage advisor from our panel.

Please contact us on 01892 501490 to speak with a member of the Home Ownership team in the first instance.