Shared Ownership is an affordable purchasing option for people who would like to own their own home but cannot afford to buy on the open market.
It gives first-time buyers, those that do not currently own a home and people who need to downsize the opportunity to purchase a share in a property.
Basically, you buy a part of your home and you rent the other part. You pay a mortgage on the share that you own and pay rent on the remaining share. As you only need a mortgage for the share you are purchasing, the deposit is a lot lower when compared to the amount that would be required when purchasing outright.
You also have the option to increase your share via a process known as ‘staircasing’ and you can staircase all the way to 100%, so you then own the property outright.
Shared ownership properties are always leasehold but once you have staircased to 100% it converts to freehold and you pay no rent.
Find out if you’re eligible and how to apply below:
