Shared Ownership FAQ's

Why should I consider Shared Ownership?

Shared Ownership requires a smaller deposit than buying a house on the open market as you’re only buying a share of the property. It’s a good way of getting on the property ladder and investing your money rather than renting and it is yours, you can decorate, buy more shares, and sell it when you want to. 

 

How much of the property do I own?

You pay for a percentage share between 25% and 75% of the home’s full market value, entering into a lease agreement with your landlord and agree to pay rent to the landlord on the remaining share of the house. Over time you can staircase all the way to 100%. 

 

What is Staircasing? 

‘Staircasing’ refers to increasing the share of the property you own. You do it gradually over time, to eventually own your home 100%. The cost of additional shares is calculated by the market value of your home when you decide to start staircasing. 

 

What am I responsible for?

As the homeowner, the property would be your responsibility to keep in good condition and fix anything you’re not happy with. If you purchase a house under the new Shared Ownership model you will benefit from a repair period of 10 years from the date of your lease or until you have fully staircased to 100% ownership.

 

Can I sell my property? 

Yes, you own your share so it’s yours to sell whenever you want. You’ll essentially be selling your share to another shared ownership buyer, through the housing association and their property listing channels. If you’ve staircased all the way to 100% and own it fully, you can sell on the open market but your housing association has the right of first refusal.

 

Is this related to ‘Help to Buy’?

Yes. But there are a few different schemes which are helping people to buy homes under Help to Buy. Most people will think of Help to Buy Equity Loan which is a loan that is provided by the Government and needs to be paid back but Help to Buy Shared Ownership is different. You buy a share of 25-75%, only pay a mortgage and deposit on the share you own and pay rent on the rest.