What is shared ownership?
Shared Ownership is a government-backed scheme, typically offered through housing associations, that allows you to buy a portion of a property — usually between 25% and 75% — instead of purchasing it outright. You take out a mortgage for the share you own, and then pay subsidised rent on the remaining share retained by the housing association.
For example, if a property is valued at £100,000 and you purchase a 25% share, you would pay a minimum 5% deposit of £2,500, arrange a mortgage for £22,500, and then pay rent each month on the remaining 75%.
It’s a popular route onto the property ladder as it offers a lower deposit and smaller monthly mortgage repayments compared to buying a home outright.
Many housing associations also give you the option to buy additional shares over time — known as staircasing — with the potential to eventually own 100% of the property.
However, the scheme comes with specific legal terms, and not all mortgage lenders support Shared Ownership, which is why it’s essential to get proper legal advice before moving forward.
What are the criteria to be eligible for Shared Ownership?
To qualify for the Shared Ownership scheme, you must meet certain eligibility criteria. You may be eligible if any of the following apply:
- Your household income is below £60,000 per year
- You are a first-time buyer
- You previously owned a home but cannot afford to buy one outright now
- You are currently renting from a council or housing association
- You are aged 55 or over
- You have a long-term disability
If any of the above apply to you, you may be able to purchase a home through Shared Ownership. To speak with one of our specialist property lawyers about your eligibility and next steps, call us on 0121 803 4665— we’ll be happy to help you get started.
