Shared Ownership
Share the dream of homeownership and make it a reality. Buy a percentage of a property and rent the rest. A fantastic way to get on the property market.
What is Shared Ownership?
The shared ownership scheme is a game-changer for first-time buyers or those finding it challenging to get on the housing market. This scheme simplifies home ownership by allowing you to purchase a part of a property and pay rent on the remaining share.
- Affordable Entry: Start with buying a small share of a property, requiring a much lower deposit compared to traditional mortgages – often starting from just 5%.
- Staircasing: There is the option to increase your shares as time goes on if you want to, and you can buy up to 100% of the property in the majority of cases.
- Selling Your Share: When it comes to selling your home, you can sell it yourself if you own 100% of it or, if you own a share, the housing association has the right to buy it first. This is what is known as first refusal of the property. The housing association also has the right to find a buyer for the property.
How much can I borrow?
Check out how much you could borrow with our free online calculator.
Shared Ownership guide
Shared ownership is a fantastic scheme to get onto the property market. Get to know the scheme in some more detail with our expert guide.
First Time Buyers Guide
When you’re buying your first home it’s normal to have loads of questions! Our expert guide has all the answers.
Eligibility for Shared Ownership
Town & Country Mortgage Services are here to offer tailored advice and comprehensive support at every step of the way of your shared ownership journey.
- Age and Income Limits: You must be at least 18 years old and your household income needs to be less than £80,000 if you are outside of London, or less than £90,000 if you’re based in London.
- Applicability: While purchasers using the scheme are typically first-time buyers, you can be a part of the scheme if you already own another home, but you need to be in the process of selling it and you would be unable to afford a suitable home on the open market.
- Credit Requirements: A good credit history is crucial to any property purchase. It shows lenders that you’re able to repay the monthly payments.
FAQ: Shared Ownership
Is it a good idea to buy shared ownership?
Buying a shared ownership property is a great idea if it’s not an option to get a 100% mortgage for a home. It allows you to purchase a share of a property (typically between 25% and 75%) and pay rent on the remaining share. This scheme can make homeownership more accessible and manageable financially, especially in expensive housing markets.
How does a shared ownership work?
In a shared ownership scheme, you buy a portion of a property’s value and pay rent on the remaining share, which is often owned by a housing association. Over time, you may also have the option to purchase additional shares in the property through a process known as “staircasing,” potentially leading to you owning the property outright. The initial share you can purchase is usually between 25% and 75%, and the rent on the remaining share is typically set at an affordable rate.
Is it hard to sell shared ownership?
Selling a shared ownership property is as easy as selling a 100% mortgaged home, just with a few more steps. You are often required to offer the housing association the first opportunity to buy it back or find a buyer who also wants to purchase the property for the same shared ownership percentage that you own.
How to apply for shared ownership?
Your broker will be able to help you navigate purchasing a shared ownership property in a similar way to getting a traditional mortgage, via their lender network and ensuring your shared ownership mortgage is the right mortgage for you.
How much rent do you pay on shared ownership?
The rent you pay on the portion of the property you don’t own is usually capped at 3% of the housing association’s share per annum. For example, if you own a 50% share of a property and the housing association owns the other 50% valued at £100,000, you could pay up to £3,000 per year in rent, or £250 per month. This rate can vary, and one of our team members will be able to give you the exact information regarding your own situation.
How does Town & Country Mortgage Services work?
At Town & Country Mortgage Services, we streamline the home-buying experience with our expert guidance, ensuring your journey is in professional hands.
As an award-winning, FCA-registered broker, our free mortgage and protection advice is designed to cater to both first-time buyers and experienced investors. Trust in Town & Country Mortgage Services for a comprehensive and hassle-free experience.
Free Initial Consultation
We'll discuss your current situation and assess your borrowing potential to guide you towards suitable mortgage lenders.
Agreement in Principle (AIP)
An AIP is prepared, giving an estimate of your borrowing capacity. With an AIP, you can confidently search for properties within your budget and make offers.
Tailored Mortgage Advice
We can provide specific lender and mortgage product recommendations. We handle all aspects of your mortgage application, ensuring a smooth process.