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What Is Shared Ownership?

Shared ownership allows buyers to purchase a percentage of a property (usually between 25% and 75%) and pay rent on the remaining share. Over time, buyers can increase their share in the property through a process called staircasing, until they eventually own 100%.

It’s an affordable alternative to buying outright, often requiring a smaller deposit and mortgage than purchasing a home at full market value.

We recently posted a video about Shared Ownership and had lots of questions! So let’s address some of them…

1. “I’ll never fully own my home”

This isn’t true! Shared ownership is designed to help people gradually buy more of their home over time. Many buyers start with a smaller share and increase their ownership as their financial situation improves. 

Some reach 100% ownership, at which point they no longer pay rent on the property.

2. “It’s really hard to sell a Shared Ownership home”

You can sell a shared ownership property, it’s no harder but the process is slightly different. Housing associations usually have the right to find a buyer first (often within a set period), but if they don’t, you can sell your share on the open market. 

If you own 100%, you can sell it like any other property. It may just take a little longer to go through the conveyancing process.

3. “It’s just another form of renting”

Shared ownership is NOT the same as renting. You have ownership rights and benefit from any increase in property value on your share. 

While you do pay rent on the portion you don’t own, it’s usually equal to market rent (and sometimes even lower) making it a more affordable option than private renting.

4. “I can only buy a New-Build”

While many shared ownership properties are new-builds, resale homes are also available. If someone in a shared ownership scheme wants to sell, their property is listed for sale, giving new buyers a chance to purchase a share.

5. “It’s harder to get a mortgage for Shared Ownership”

Many lenders offer shared ownership mortgages, and the deposit required is often much lower than buying outright. Because you’re taking a mortgage on a percentage of the home rather than the full value, it can be a much more accessible option for buyers with smaller deposits and a way to get a foot onto that housing ladder.

Is Shared Ownership Right for You?

Shared ownership offers a flexible and affordable way to own a home, but it’s important to understand how it works. If you’re considering shared ownership and want advice, we’re here to help.

Get in touch today on 01952 632140 to discuss your options!