Shared Ownership Scheme

A Shared ownership property is essentially a combination of buying and renting. You will own a share of the property and pay rent to a Housing Association on the part you don’t own. To qualify for Shared ownership the combined salary or other earnings of both you and your spouse or partner must not be more than £80,000 a year or £90,000 a year if you live in London. In addition, any of the following must apply:

• You are a first-time buyer
• You used to own a home, but cannot afford to buy one now; or
• You already own a Shared ownership property

You will be required to undertake an affordability assessment which will be carried out by an Independent Financial Advisor. They will assist you in assessing the share you are able to purchase and the affordability of mortgage and rent payments. Once you have bought a property you are able to buy additional shares by a process known as ‘staircasing’. The price for additional shares will depend on the value of the property at the time you buy that extra share. This means it will cost more than your first share if property prices have increased. There are also additional costs which will be payable in addition to the price. Shared ownership properties are always leasehold. This applies irrespective of whether the property is a house or a flat. The lease will contain restrictions which you will need to follow. The rent on the share you don’t own will be reviewed every year and will usually increase. Although you will only own a share of the property, in addition to your mortgage & rent, you will be required to pay the entire cost of items such as:

• Council Tax
• Gas, Electricity, Water & phone bills
• Repair & maintenance costs for both the inside & outside of the property
• Buildings & contents insurance
• In some cases, a contribution to maintenance of shared areas

Your Local Housing Association will be able to provide more detailed information or you can visit: www.gov.uk/affordable-home-ownership-schemes/shared-ownership-scheme