Shared ownership

  • Part buy / part rent from housing association.
  • Borrow up to 95%.
  • Buy anything from 25% – 75% of house value.
  • Fixed and tracker rates
  • Exclusive products
  • Available to those with adverse credit.

Shared ownership allows low cost entry to the housing ladder. Only a share of the property is purchased and owned, whilst rent is paid to the house association for the remainder. Rest of the equity can be purchased in the future in steps at the market value at the time.

Two specialist schems available for older people: Home Ownership for People with Long-Term Disabilities (HOLD) and older people shared ownership scheme.

Shared ownership criteria.

  • Leasehold properties only i.e. Flats.
  • Your household needs to earn £60,000 a year or less. In London this is higher: £66,000 a year for a home with one or two bedrooms, or £80,000 for family homes of three bedrooms or more.
  • First-time buyers or you used to own a home, but can’t afford to buy one now.
  • If you rent a council or housing association property, then you will receive priority.
  • Lender will apply standard lending criteria e.g. credit score, income etc.

Pros

  • Minimum deposit.
  • Allows purchasing larger properties (e.g. family needs) as only a share needs to purchased.
  • All standard mortgages are available.
  • No maximum property value.

Cons

  • No sub-letting allowed.
  • Require permission from Housing Association for any alteration in the property.
  • Mainly leasehold flats only.
  • Majority of new purchases are new builds, which are not a preference for some.
  • Loose share of future property price gains.