What is Shared Ownership?

Shared Ownership is a housing scheme designed to help home buyers who are unable to afford to buy a property outright on the open market. It is governed by the Greater London Authority in London and the Homes and Communities Agency outside London.

How Does Shared Ownership Work?

Shared ownership schemes work by enabling home buyers 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.

More about shared ownership:

  • Affordable homes are purchased on a leasehold basis. The lease is normally 125 years.
  • Home buyers will own an equity share in the property. This will be anything from 25% to 75%. The exact percentage will be dependent on what is being offered by the vendor and the amount the buyer is able to afford (as determined by a financial assessment).
  • 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 the time, as determined by a 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 within that time, the property can be sold on the open market. Again, the value is determined by a RICS Surveyor.
  • Each development will have an eligibility criteria. This may be based on the area in which applicants currently live or work and the type of accommodation currently occupied.

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:

  • The home buyers' household income needs to be below £66,000 for one and two bedroom properties and below £85,000 for three bedrooms. 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.
  • £5,000 towards legal fees, mortgage arrangement fees and stamp duty.

How can Currell  help?

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