What is Shared Ownership

What is Shared Ownership?

Shared ownership, sometimes known as part-buy, part-rent, is a Government-backed scheme which enables you to buy a share of a new property. The share you buy is usually between 25% and 75%. You then pay a low, subsidised rent on the remaining share you don’t own.

This means that the amounts you need for a deposit and for your mortgage repayments are significantly lower than if you were buying outright. You borrow only what you can afford to repay.

Designed for buyers who can’t afford to buy outright

Shared ownership is specifically designed for buyers who can’t afford to buy a property outright, and is available to first time buyers or buyers who don’t own another property. You don’t have to be a key worker or living in social housing to be eligible, and having a well-paid job doesn’t necessarily rule you out. If your annual household income is between £20,000 and £90,000, chances are you might be eligible. You can buy through shared ownership on your own or with a partner or friend as long as your joint income doesn’t exceed the maximum earnings bracket.

When you apply for shared ownership your eligibility
will be assessed individually, but there are some core requirements:



Outside London we’ll consider applications from households with an annual income of up to £80,000. Inside London this increases to £90,000. The minimum income is usually around £20,000, but if you have a larger deposit you may be eligible with a lower household income.



Priority is usually given to applicants who live or work within the area they want to buy. This criteria is usually set individually for each development.



The property you are buying through shared ownership must be the only property you have ownership of or in, and you must be buying as a part owner occupier. If you already own a property, a sale must have been agreed before you can qualify for shared ownership.

Don’t worry if you don’t meet the criteria above, there will be other options available to you. Property Booking will be only too glad to advise on these. You can also contact your local Help to Buy agent who will assess your housing needs and your next steps.

No compromise on location or quality

Buying through shared ownership doesn’t mean compromising on the location or quality of your new home. We have a huge choice of beautifully designed and fitted properties available, including high quality apartments, houses, maisonettes and town houses. From fabulous family houses in desirable towns such as Horsham in Sussex, to stunning contemporary apartments available for shared ownership in London in a range of central post codes, there truly is something for everyone.

So, why buy through shared ownership?
What are the benefits?

First off, it gives you that all-important first foot on to the property ladder

Your deposit will be a percentage only of the share you are buying. This is likely to be a fraction of what you’d have had to pay if you were buying 100% of your home on the open market

You will be exempt from paying Stamp Duty if your share is valued at under the minimum threshold

The lower initial outlay enables you to buy a bigger property than you might otherwise have been able to afford, in an area previously out of your reach

Your combined monthly mortgage and rent repayment will often be less than were you renting privately

You can build up the share of the property you own until you own it outright. You will consequently be investing in your new home rather than simply paying rent

You will have all the benefits and security of being a shared ownership leaseholder

Before buying through the scheme, you will benefit from a personalised financial interview to ensure you can afford your share and won’t be over-stretching yourself in the future