Shared Ownership

Shared ownership is an alternative method of owning property for those that might not have the means to purchase outright. Sometimes referred to as part-buy part-rent, shared ownership allows buyers to purchase a share of a home – usually between 25% and 75%. Purchasers will pay a mortgage on the share that they own, and a below-market-value rent on the remainder to a housing association, along with any service charge and ground rent. As the purchaser only needs a mortgage for the share they own, the amount of money required for a deposit is often much lower compared to purchasing a property outright.

The benefit of shared ownership is that it allows individuals with lower incomes to get onto the property ladder, most lenders also allow ‘staircasing’ with shared ownership properties which is the process of purchasing more shares in the property, in most cases all the way up to 100%, which alleviates the need to pay rent.

The downside to shared ownership is that regardless of how low your share in the property is, you will be expected to pay 100% of the ground rent and service charge on the property, as well as stamp duty on the full property value if you are not a first time buyer.

Whatever your shared ownership needs are, we can help to check your eligibility and advise on the best lenders for you.