Shared Ownership Guide

Shared Ownership

To help individuals and families take the first step on the property ladder, housing associations and private developers have helped buyers by setting up a shared ownership scheme, whereby you would initially purchase a share between 25% – 75% and pay rent for the remaining share.

Shared ownership requirements

Shared ownership properties are always leasehold properties and the requirements for eligibility are as follows:

• your household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London

• you are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.

What types of properties can I buy?

You can buy a new build home or an existing home through the resale programmes offered by housing associations.

Where do I start?

Firstly, search for your local Help to Buy agent. They will give you advice as to how to meet the criteria for shared ownership. Secondly, you will need to secure a mortgage, specify that it’s for a shared ownership agreement. You could also use savings or borrow the money needed.

Priority groups

• Military personal are the only group who will be given priority access to shared ownership through government funded programmes. Nevertheless, individual councils in some regions will have their own shared ownership priority groups to meet the needs of local people.

• Home Ownership for People with Long-Term Disabilities (HOLD) can help you buy properties using shared ownership. HOLD can be used when the homes available to you don’t meet your requirements such as access.

• If you’re over 55 there is a specific scheme called ‘Older People’s Shared Ownership’. It works in the same way however, you can only buy up to 75% of your home and once you own 75% you no longer have to pay rent.

Staircasing and shared ownership

During your ownership of the property, you can purchase more shares in the property, this known as ‘staircasing’ in shared ownership. For most customers, staircasing is likely to involve a new, larger mortgage. The value of the additional share will depend on the value of the property at the time. There are additional costs involved in staircasing including, valuation fee, legal expenses, stamp duty and mortgage fees.

Selling the property in shared ownership

If you wish to sell the property, with shared ownership you can only do so if you own 100% of the shares in the property. However, during the first 21 years of ownership, you will need to provide the housing association first refusal of the property. This means that if they want to, they will purchase the property from you. If you do not own the full 100% share, the housing association will find a buyer for the property.

We are very familiar with the shared ownership scheme process at Arrow Conveyancing and our Property team will be more than happy to guide you through the process.- will we be showing the same property team?

To get the ball rolling with shared ownership, get a quick, instant conveyancing quote today.


The materials on this website do not constitute legal advice and are provided for general information only. Whether express or implied, no warranty is given concerning such materials. We shall not be liable for any technical, editorial, typographical, or other errors or omissions within the information provided on this website, nor shall we be responsible for the content of any web images or information linked to this website.

The information contained in this article does not constitute financial advice or recommendation and should not be considered as such. Arrow conveyancing does not offer financial advice and is not regulated by the Financial Conduct Authority (FCA), the authors of this article are not financial advisors and are therefore not authorised to offer financial advice.

Published on :  

January 29, 2024

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