How does Shared Ownership work?
There are slightly different schemes for Shared Ownership UK-wide, but this information focuses on Shared Ownership in England.
If you’re eligible, you can apply for the Shared Ownership property that you’d like to buy. It’s easier than you may think; you purchase a share of between 25-75% of your new home, using your deposit and a mortgage, and pay subsidised rent on the remaining share.
The other part of the home is owned by a housing association or housing development company, like Places for People, this is who you’ll pay rent to, and Shared Ownership homeowners can buy more shares in their property later, if you wish, in some instances up to owning 100% of your home. This is called ‘staircasing’. The more shares in the property you own, the less rent you need to pay on the remainder.
With Shared Ownership, the lower deposit and mortgage repayments helps people get onto the property ladder sooner, rather than later.