01322 223331
Book a Chat
Home
Mortgage Advice
Protection
Resources
Contact
Shared Ownership Mortgage Specialists
Caveat
Shared ownership, made simple.
What is Shared Ownership?
Shared Ownership is a government-backed scheme that lets you buy a share of a property and pay rent to a housing association on the share you don’t own. It’s designed to make home ownership more accessible if buying on the open market isn’t affordable.
Over time, you can buy additional shares in your home, a process known as staircasing, until you own 100%* of the property.
Lower Deposit
Staircase to 100%*
Increase your ownership over time and eventually own 100%* of your home
Expert Support
Specialist advice to navigate the unique requirements of Shared Ownership mortgages
*Most properties allow you to staircase and own 100%, but some leases restrict this. Your solicitor will confirm the terms of the specific lease before you exchange.
Shared Ownership Mortgage Advice You Can Rely On
Shared Ownership mortgages work differently from standard residential mortgages, and not every broker understands the nuances. We do. From navigating housing association requirements to finding lenders who actively support the scheme, we handle the complexity so you don’t have to, leaving you free to focus on finding the right home.
We Can Help You With
First Share Purchases
Getting on the ladder with the right Shared Ownership mortgage from the start.
Staircasing
Expert advice when you’re ready to buy a larger share of your home.
Shared Ownership Remortgages
Reviewing your options when your fixed rate ends.
Moving to a New Property
Specialist guidance on porting or replacing your mortgage for a new Shared Ownership home or moving on without using the scheme.
Questions People Frequently Ask
Clear, straightforward answers to the most common shared ownership questions.
How does shared ownership work?
Shared Ownership is a government-backed scheme that lets you buy a share of a property and pay rent to a housing association on the share you don’t own. It’s designed to make home ownership more accessible if buying on the open market isn’t affordable.
You buy a share of a property, typically between 10% and 75% and pay a mortgage on that share. You then pay rent to the housing association on the remaining share, along with any applicable service charge.
Over time, you can buy more shares through staircasing*, reducing the rent you pay as your ownership grows. Eventually, on most schemes, you can own 100%* of the property.
*Most properties allow you to staircase and own 100%, but some leases restrict this. Your solicitor will confirm the terms of the specific lease before you exchange.
Who is eligible for shared ownership?
To qualify, you will usually need to meet the following:
- You can be a first-time buyer, a home mover or a previous homeowner.
- At the point of completion, you must not own another property.
- Your household income is typically capped at £80,000 (or £90,000 in London)
- You can afford the mortgage, rent and service charge, but you couldn’t realistically afford a suitable property on the open market.
Each housing association may have its own criteria in addition to the scheme rules, and we can help you navigate these.
Is Shared Ownership a good option?
Like any route into home ownership, Shared Ownership offers real benefits but also has some important points to weigh up. Here’s an honest look at both sides.
Some of the benefits:
- You need a smaller deposit, as it’s based only on the share you’re buying.
- Because you’re borrowing less, your mortgage payment is typically lower.
- You can buy additional shares over time through staircasing, to own 100% of the property*
- You may be able to afford a larger or more suitable property through the scheme than you could on the open market.
Points to consider:
- You’ll be paying a mortgage, rent on the unowned share and a service charge.
- Shared Ownership properties are leasehold.
- Rent can increase over time.
- Service charges apply and can change year to year.
- When selling, your lease may require you to give the housing association a period of time to find a buyer before you can market the property more widely.
- For many clients, buying a suitable property on the open market simply isn’t achievable. Shared Ownership can be a strong option, provided you meet the eligibility criteria and understand the ongoing commitments.
*Most properties allow you to staircase and own 100%, but some leases restrict this. Your solicitor will confirm the terms of the specific lease before you exchange.
How much does shared ownership cost, and can I afford it?
Your monthly costs with shared ownership will typically include:
- Mortgage repayments on the share you own (less your deposit)
- Rent to the housing association on the share you do not own (for new build properties, this is usually set at 2.75% at the unsold share value)
- A service charge for maintenance of communal areas and the building, which will also normally include business insurance.
- Building insurance (usually included in the service charge)
- As a rough guide, you will need a deposit of at least 5% of the share price. For a 40% share of a £250,000 property (i.e., £100,000), the minimum deposit is £5,000.
- Most housing associations use an affordability assessment to determine the maximum share you can buy. You can use our shared ownership calculator to get a clearer picture of your likely monthly costs before applying, or get in touch, and we will walk through the numbers with you.
Can you staircase shared ownership, and is it worth it?
Yes, staircasing is one of the key features of Shared Ownership. It’s the process of buying additional shares in your home over time, increasing your ownership percentage until, in most cases, you can own the property outright*. You’re not obliged to staircase; it’s always your choice.
Under the current Shared Ownership model for new-build properties, you can buy shares in increments as low as 1%, giving you much more flexibility than older schemes. For resale Shared Ownership properties, the minimum increment can vary and is often higher, so check the specific terms of your lease.
Is it worth it? In most cases, yes, if you can afford it. The main benefits are:
- Your rent reduces as you own more of the property
- You build equity faster, particularly if property values are rising
- You gain more control, and in some cases can potentially convert to freehold once you own 100%*
- The costs to factor in include a property valuation (typically £300-£500), legal fees, and potentially stamp duty, depending on how much you’ve already paid and the value of the additional shares.
- We’d strongly recommend a review of your circumstances, goals, and future plans to confirm whether staircasing is the right option for you.
*Most properties allow you to staircase and own 100%, but some leases restrict this. Your solicitor will confirm the terms of the specific lease before you exchange.
Is shared ownership leasehold, and does it matter?
Yes, Shared Ownership properties are sold on a leasehold basis. These leases were typically 99 to 125 years, but in recent years, we’ve seen leases of 900+ years become more common on new schemes.
The main considerations with leasehold are:
- Lease length: A lease below 80 years can make a property harder to mortgage and sell, and can be expensive to extend
- Service charges: As a leaseholder, you’ll pay these to the freeholder or managing agent, and they can increase over time. With Shared Ownership, these will normally include your buildings insurance.
- Ground rent: Under recent legislation, ground rent on new leases is now set at zero
- Control: You’ll need permission from the freeholder for certain alterations
- The key is to go in informed: check the lease length, review the service charge, and make sure a solicitor experienced in Shared Ownership reviews everything before you exchange.
How do I find and apply for shared ownership properties?
There are several ways to find shared ownership homes:
- Housing association websites – many list their available properties and maintain waiting lists.
- Homes England – can signpost you to available properties and eligible schemes in your region.
- Rightmove and Zoopla both have shared ownership filters in their search tools.
- Once you’ve found a property you’re interested in, the application process typically involves registering your interest with the housing association, completing an eligibility and affordability assessment, and then being offered a property if you meet the criteria and one becomes available.
- If you’re considering Shared Ownership, get in touch for a review of your circumstances and future plans. We’ll help you decide whether it’s the right option for you.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage.
Ready to Take the Next Step?
Book a consultation with our Shared Ownership specialists today.