FAQs

These set of frequently asked questions cover the majority of queries that our experienced mortgage advisors handle on a daily basis.

However, if you still have a specific query, please call us on 0207 090 7290 or contact your Housing Association.

What is Shared Ownership?

Shared Ownership is a Government-supported scheme that allows eligible individuals to purchase a share of a property and pay rent on the remaining share to a housing association, local authority or developer.

You may be able to buy additional shares in your home in the future. This process is known as staircasing.

Who is eligible for Shared Ownership?

General eligibility criteria include:

• You must be aged 18 or over

• Your household income must usually be no more than £80,000 per year (or £90,000 in London)

• You should not own another property at the time of purchase

• You must be able to afford the costs involved in buying a home

Eligibility criteria may vary depending on the housing provider and local planning requirements.

What share of a Shared Ownership home can I buy?

The share you can purchase will depend on your individual circumstances and the terms of the scheme.

Many new Shared Ownership homes offer initial shares between 10% and 75% of the full market value.

Will I need a deposit?

You will usually need a deposit for the share you are buying rather than the full market value of the property.

Deposit requirements vary depending on the lender and your personal circumstances.

What costs will I pay?

You will normally pay:

• A mortgage on the share you own

• Rent on the share you do not own

• A service charge

• And household bills such as council tax and utilities

Service charges may include buildings insurance and the cost of maintaining communal areas.

Can I buy more shares later?

You may be able to buy additional shares in your property over time. This is known as staircasing.

The rules for staircasing will depend on your lease and housing provider.

Do I have to staircase to 100%?

No.

Some Shared Ownership leases may allow staircasing to full ownership, although this is not always the case.

Can I sell my Shared Ownership home?

You can sell your share in the property at any time, subject to the terms of your lease.

Your housing provider may have the right to nominate an eligible buyer for an initial marketing period.

Can I rent out my Shared Ownership home?

Shared Ownership properties are intended for owner occupation and subletting is generally not permitted under the terms of the lease.

Can I take in a lodger?

Some leases may allow you to take in a lodger, subject to permission from your housing provider.

Who is responsible for repairs?

You will usually be responsible for repairs and maintenance inside your home.

Responsibility for communal areas will normally rest with the housing provider and may be covered by your service charge.

Will my rent or service charge change?

Rent and service charges are usually reviewed annually in accordance with the terms of your lease.

Am I responsible for any service charge shortfalls?

Service charges are estimates based on anticipated costs.

If actual costs differ, there may be an adjustment in accordance with the terms of your lease.

What happens if the value of my home changes?

Property prices can rise and fall.

This may affect the value of the share you own and the price of any additional shares you choose to purchase.

What happens if I want to move?

If you wish to move, you may sell your share in the property and, if eligible, purchase another Shared Ownership home.

Can I buy a Shared Ownership home with bad credit?

Having a low credit score does not automatically exclude you from Shared Ownership.

However, mortgage lenders will assess your credit history when considering a mortgage application.

Can I buy a Shared Ownership home if I am self-employed?

Yes, it may be possible to purchase through Shared Ownership if you are self-employed.

Mortgage lenders may require additional documentation to verify your income.

Do I pay Stamp Duty on Shared Ownership?

You may be required to pay Stamp Duty Land Tax (SDLT) when purchasing a Shared Ownership property, depending on the share you buy and your individual circumstances.

You should seek independent tax advice if you are unsure how SDLT may apply.

Can I use a gifted deposit?

Some mortgage lenders may accept a gifted deposit from an immediate family member, subject to their criteria.

Can I use Universal Credit towards Shared Ownership costs?

Universal Credit may be used towards rent payments in some circumstances, subject to eligibility.

Can I buy a house through Shared Ownership?

Shared Ownership may be available on both houses and flats, depending on the development and housing provider.

Can I extend the lease on a Shared Ownership property?

It may be possible to extend the lease on a Shared Ownership property.

You should seek independent legal advice.

Can I remortgage a Shared Ownership property?

It may be possible to remortgage your Shared Ownership property, subject to lender criteria and the terms of your lease.

Who is responsible for Buildings Insurance?

For flats, buildings insurance is usually arranged by the freeholder and included within the service charge.

For houses, you may be responsible for arranging buildings insurance yourself.

What happens if I cannot pay my rent or service charge?

If you experience financial difficulty, you should contact your housing provider as soon as possible.

Where can I find Shared Ownership properties?

Shared Ownership properties are advertised by housing providers and affordable home ownership portals.

Neither Censeo Ltd nor PRIMIS is responsible for the accuracy of the information provided.