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Shared Ownership New Build & Resales

Shared ownership is the longest established affordable home ownership products available and is available on new build and pre-owned properties (resale).

It is a government-backed scheme for people who are unable to afford to buy a home at full market value, usually first-time buyers or those who have had a relationship breakdown can buy a property that otherwise may not have been affordable. There is also a shared ownership option for those over the age of 55.

Shared Ownership, is a part buy/part rent scheme. On new build properties you can usually buy an initial share of 25% to 75% of the value of a property, although starting from April 2021 the government funding to help build affordable homes  has changed which will allow homes built using this funding will have initial shares from 10%. The properties will be advertised based on the funding used. With a resale you buy the share the seller owns or more up to 75%.

You’ll need to take out a mortgage to pay for your share of the property’s purchase price. To secure a mortgage you will need a deposit to put towards the purchase prices – generally a lender would require at least 5%. With shared ownership you will only need a deposit for the share you buy which will be significantly less than buying the property outright. You will then pay a subsidised rent on the share you don’t buy, and there will also be a monthly service charge payable.   

If you buy through shared ownership:

  • You will own part of the value of your home, rather than paying rent with no return.
  • You will pay a subsidised rent on the share you don’t own – The rent is based on up to 3% of the share you don’t own which is generally a lot lower than renting privately. The rent is paid in 12 equal monthly payments. (Rent is reviewed each April) ·Your monthly mortgage and rent can work out cheaper than buying outright, and often less than renting from a private landlord. You pay a monthly service charge for repairs, maintenance of the building and communal areas, sometimes an estate charge for external gardens and parking, building insurance and a reserve fund sometimes referred to as sinking fund which builds up funds for major long-term expenses. (Service charge is reviewed each April)
  • You can buy more shares in the property over time (known as staircasing) or sell your share and move if you want to in the future. Property prices can rise and fall, so buying more of the property is best when the markets are lower and sell when rising if possible. There are fees involved in doing this and you will need legal advice.
  • You only buy what you and we feel you can comfortably afford and sustain.
  • A new build property will be bought with a lease of at least 125 years but on resales, it will be the term left on the lease from when the property was first built. If a lease is less than 80 years, the lease is known as being short, which means some Lenders may not lend on the property. You can usually extend a lease, however if the lease falls below 80 years it can be more expensive, so it is better to extend the lease before then.

General shared ownership eligibility criteria:

  • You must be aged 18 or older.
  • Your annual household income up to £80,000 outside London (£90,000 in London).
  • You will normally be a first-time buyer or be in the process of selling your home. You must not own any other property at the time you buy your new home.
  • You should not be able to afford to buy a home on the open market which is suitable for your housing needs.
  • You must be able to show you are not in rent or mortgage arrears.
  • You must be able to demonstrate that you have a good credit history (no County Court Judgements or bad debts) and can afford the costs and regular payments involved in buying a home.

Priority for shared ownership

Shared ownership follows Government rules set in the Homes England / Greater London Authority Capital Funding Guide. For any type of shared ownership property, priority for a property will go to Armed Forces personnel – if you are serving or have left the Armed Forces within the last five years, or if you are required to leave your property after your partner has died through service.

After this priority group many local planning obligations will apply, this is usually prioritised to social housing tenants moving to shared ownership, those who live and or work within the local authority where the property is available and in some cases initial marketing has to be those local people and who have a household income below a set cap. After this initial marketing period it is usually available to anyone who qualifies to buy shared ownership.

Leading Affordable Home Portals – sharetobuy.com or https://www.london.gov.uk/what-we-do/housing-and-land/homes-londoners/search/

Censeo Limited is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. Censeo Limited is registered in England and Wales, company registration number 06453977, the Registered Address 11b Newton Court, Pendeford Business Park, Wolverhampton, WV9 5HB.

We will charge a broker fee of up to £495, payable on application. The amount we will charge is dependent on the amount of research and administration that is required.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

The Financial Conduct Authority does not regulate all Buy to Let mortgages.

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