How Does Shared Ownership Work?
Shared Ownership is a government-backed scheme designed to assist people who are unable to afford to buy a home outright. These properties are available to buy on a part-buy, part-rent basis. (At the initial purchase the minimum equity share that can be purchased is 25% and the maximum share is 75%.) Further portions of equity can be purchased at a later date through staircasing until you own the property outright.
You will require a minimum deposit of usually around 15% to 20% of the share being purchased. You will also be required to pay a subsidised rent on the unowned equity, at a usual rate of 2.75% per annum. In addition to this, you will need to pay a monthly service charge. In order to assess whether you can afford the property and if you are eligible (restriction may apply, you may need to live and/or work in the borough) you will be required to have an initial telephone assessment with our recommended independent financial assessor followed by a full financial interview at which stage you can also apply for your mortgage.
You would be responsible for payment of your own legal fees, Stamp Duty Land Tax, mortgage arrangements and survey fee.
Who Can Apply For Shared Ownership?
First-time buyers or those who have previously owned a home and do not currently.
People whose combined household income is less than £90,000.
You rent a council or housing association property.
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