What is Shared Ownership?

How does shared ownership work?

Shared ownership schemes work by enabling homebuyers to purchase a share in a new home and pay a subsidised rent to the Housing Association on the remaining share along with a monthly service charge.

For a comprhensive guide to the shared ownership process click here

More about shared ownership: 

  • Shared ownership properties are purchased on a leasehold basis and the lease is normally 125 years.
  • Home buyers will own an equity share in the property, anything from 25% to 75% dependent on what is being offered by the vendor and financial assessment has deemed the buyer as being able to afford.
  • Financial ability is assessed by an independent financial advisor and home buyers are required to buy up to their maximum affordability – there is no charge for the assessment.
  • Additional shares in the property can be purchased at any time; this process is known as staircasing. The price is always taken from the market value at that time which is determined by an RICS Surveyor.
  • Properties can be sold at any time. The housing association will normally have a 12 week period in which to find another person to purchase the property under the shared ownership scheme, however if they are unable to find a buyer, after that time the property can be sold on the open market – again the value is determined by an RICS Surveyor.

Am I eligible for shared ownership?

In order to qualify for shared ownership, applicants must fulfil the following requirements as stipulated under the terms of the scheme:

  • In London the home buyer's household income needs to fall below £90,000, outside of London the maximum annual income for those looking to buy a home through shared ownership is £80,000. Every property will have a minimum income level too, determined by its value, rent and service charge costs.
  • Access to a minimum deposit of 5% of the share being purchased.
  • Be employed on a permanent contract and have passed any probation or be able to provide three years audited accounts if self-employed.
  • British, EU or EEA Citizenship or have indefinite leave to remain.
  • £5000 towards legal fees, mortgage arrangement fees and stamp duty.

Each development will have an eligibility criteria of its own and this can be based on the area in which applicants currently live or work and the type of accommodation currently occupied.

How can Currell help?

Currell sell properties on behalf of various shared ownership providers and housing associations and can advise when eligible properties become available. For further information or to register your requirements, please contact a member of the Shared Ownership team on 020 7704 5618 or email sharedownership@currell.com

Just to note I have been impressed with Currell whenever I have communicated with them. Consider yourselves a diamond in the rough.

Alex Poulopoulos