Shared Ownership Fact and Fiction

So, you’ve heard about shared ownership but you’re not sure how it works? Well, you’re in the right place to find out more.

There a lot of confusion, and plenty of misconceptions, on the subject of shared ownership. In fact, over the years, we’ve heard the lot.

So, let’s look at some facts and put the fiction to bed!

Fiction: It’s only for first time buyers

Fact: Whether it’s your first home, a bigger home or you’re downsizing, as long as you’re over 18, earn less than £80,000 and don’t own any other home, shared ownership could work for you.

Fiction: Shared ownership means sharing the home with a stranger

Fact: The term ‘shared’ in ‘shared ownership’ refers to the fact that you’re sharing ownership of the property with us. So, if you’re looking to buy a home for your family, a place with your partner or a new home just for you, you can!

Fiction: I can’t afford the deposit on a new home

Fact: With shared ownership your deposit could be as little as 5% on the share you are buying, not the full value of the property. So on a 25% share of a home that costs £100,000, your share would be £25,000 and your deposit just £1,250.

Fiction: I can’t afford to pay rent and a mortgage each month

Fact: Your mortgage only covers the share of the home you own and the rent is reduced. In many cases, the monthly costs of a shared ownership home can be less than renting privately.

Fiction: I won’t own all of it, so I can’t decorate it the way I want to

Fact: The only time you need permission from us is if you’re doing structural work like fitting a new bathroom or adding an extension. Otherwise, it’s your home so you can decorate it to suit you.

Fiction: You’ll always be a shared owner and can’t purchase up to 100%

Font: You can choose to buy more shares in your home, whenever you’re ready to. This is known as staircasing. You continue to buy shares until you own 100% of your home.

Fiction: You can you ask me to move out at any time

Fact: Once you’ve purchased your shared ownership property your interest in the property is registered. As with all mortgages, as long as you maintain your mortgage payments you will not be asked to leave your home at any point. Please be aware your home is at risk if you do not keep up your mortgage and rental payments.

Fiction: You’ll charge me a high fee to purchase the leasehold

Fact: Most housing associations will gift shared owners their interest in the property (which may include the freehold of the property) once you staircase to 100%.

Fiction: Shared ownership homes are difficult to re-sell

Fact: If you want to sell your shared ownership property in the future, you must first offer it back to your housing association, but then are free to sell your share on the open market using an estate agent to someone who qualifies for shared ownership.