Shared Ownership is a housing scheme aimed mainly at first-time buyers that combines renting and owning a property to make it more affordable for those who might struggle to afford a property on the open market.
With shared ownership, you purchase between 25% and 75% of the property and pay a mortgage on that share. You then pay rent to a housing association on the remaining share. Because you only require a mortgage on a portion of the property, the deposit required for purchase will be significantly lower than normal (typically 5-10% of the share you purchase), and the rent you pay is typically charged at a lower rate than what you would pay on the open market. During your time in the property, you would have the option to increase your shares in the property in increments, all the way up to 100% if you wanted to. This is known as staircasing.
- You must be at least 18 years old.
- Outside of London, your annual household income must be less than £80,000.
- In London, your annual household income must be less than £90,000.
- If you already own a property, you must be in the process of selling it.
- You must still fit affordability for the monthly payments and prove that you can make those payments.