Shared Ownership is a housing scheme provided through housing associations aimed at helping people get on the property ladder that cannot afford a large mortgage or have a small deposit. There are government backed and private schemes available.
The way it works is that you buy and own a share of the property i.e. 50% and the housing association owns the other per cent. You only need to mortgage your share and pay the deposit for your share and pay rent on the other share. The rent on the remaining percentage of the property is subsidised by the housing association.
The scheme is available for first time buyers as long as your combined income is £60,000 or less. It is also available to people who have previously owned a home but cannot afford to now, and also people renting a council or housing association home.
You are able to buy more shares of your shared ownership property at any time after you have purchased it. The shares are worked out by valuing the property at the time you buy the share and working out the share amount from that. The housing association will arrange the valuation and they will inform you of the amount of the share, although you will have to pay the cost of the valuation.
You can buy more and more shares until you own 100% of the property if you wish to. This means you would own the property outright and no longer pay any rent to the housing association.
Selling your Shared Ownership Home
If you have staircased to 100% and own the property outright then you can sell the property yourself as you wish. The housing association have a right for 21 years after you own your home outright to have first refusal on the property. They have the option to buy back the property first.
However if you own a share of the property it is the job of the housing association to market it for sale. They will often have a list of people looking for shared ownership properties and the property will be offered to these people first. The property will then be a shared ownership resale and the new buyers will have to purchase whatever share amount you have on the property.
Do you qualify?
Your income is less than £60,000 (combined)
You currently rent a property from the council or housing association
Your a first time buyer or;
You previously owned a home but cannot afford to buy a home now