Shared ownership is a good way to get a stake in a property when you can’t afford or can’t borrow enough to buy outright. The schemes allow eligible buyers to buy a stake (usually between 25% and 75%) in a property, whilst paying rent on the remaining share to the property developer or housing association that own the building. The rent you pay on the remaining share is charged at a discounted rate.

You are eligible to buy a home through shared ownership if your household earns £80,000 a year or less and either you’re a first-time buyer, you used to own a home, but cannot afford to buy one now or you’re an existing shared owner.

It is possible to later buy more of the home by increasing your share through ‘staircasing’. Shares can be bought in 10% increases, which will in turn reduce your rent. The cost of your new share will depend on how much your home is worth when you want to buy the share. It is important to note that purchasing additional shares in your property can be expensive, as you may have to pay a valuation fee, legal expenses, and additional stamp duty and mortgage fees each time.

If you decide to sell your shared ownership property, the developer or housing association has the right to buy it back off you first. They also have a right to find a buyer for your home. 

If you would like any further information or advice in relation to buying or selling a property, please contact us on 01384 410 410 or send an email to residentialconveyancing@georgegreen.co.uk. You can also get a free quote by using our conveyancing quote tool on our website.