In a property market where many people find themselves being outpriced out of property ownership, Shared Ownership may be a practical alternative. Here we take a closer look at what is involved and how the scheme can help individuals and families, particularly first-time buyers, get onto the property ladder.
What is Shared Ownership?
Shared Ownership allows buyers to purchase a percentage of a home, usually between 10% and 75%, while paying rent on the remaining share to a housing association or similar provider. The property is leasehold, and over time, buyers can increase their share in a process known as “staircasing”. Over months and years, they can eventually work towards full ownership.
Because only a portion of the property is initially purchased, the deposit and mortgage requirements are lower, making it a more accessible option for those with limited savings. For example, someone buying a 25% share of a £200,000 home would only need a deposit and mortgage for £50,000. The remainder is paid through monthly rent to the housing provider.
Who is Eligible?
To be eligible for the scheme, your annual household income must be less than £80,000 (or £90,000 in London), and you must either be a first-time buyer or a previous homeowner who can’t currently afford to buy outright. The scheme is also open to existing shared owners looking to move. Some housing associations may have additional criteria depending on the property or location.
Benefits and Considerations
One of the key benefits of Shared Ownership is affordability. With a smaller initial financial commitment, the scheme makes owning a home more achievable. It also offers stability and long-term security that renting can’t always provide. Buyers have the flexibility to increase their share over time as their circumstances allow.
However, there are some important points to consider. Buyers are responsible for 100% of the maintenance and repair costs, even though they may only own a small portion of the property. As these homes are leasehold, there may also be ground rent and service charges to pay.
Reselling a shared ownership home can also involve additional steps, as the housing association usually has the right of first refusal to buy the property back or to nominate a buyer.
How Lea Hough Can Help
At Lea Hough Chartered Surveyors, we regularly work with clients navigating Shared Ownership. Our professional advice includes:
- Valuing a property for the initial purchase,
- Helping clients looking to staircase
- Providing valuations for resale purposes
Our experienced team ensures that buyers have the information and professional advice they need. We offer clear, accurate Valuation Reports to help clients make informed decisions throughout the Shared Ownership process.
Get in Touch With our Valuation Surveyors
Shared Ownership can be a manageable step into homeownership, especially when guided by professional advice. For more information about our Shared Ownership Valuation Services or to speak to a member of our team, please get in touch.
