Shared Ownership

Property Buying Guide

Shared Ownership

Shared ownership means owning part of a property with another party (usually a Housing Association) and paying rent to them for the part that they own but allow you to live in. They do not live in the shared ownership property with you. You can increase your share as time goes by, sometimes to 100%, this is called ‘stair-casing’.

To progress with shared ownership, you will need a shared ownership mortgage. Shared ownership means having to save for a smaller deposit and a taking out a smaller mortgage as you will only own part of the property. If you have some deposit saved, contact a mortgage advisor about the shared ownership mortgage.

The government’s shared ownership schemes are not exclusively key worker shared ownership schemes. These schemes are operated under the name ‘New Build HomeBuy’ and are open to first time buyers who have a household income of £60,000 pa or less. Most shared ownership schemes require you to have some sort of a deposit and costs of up to about £3000 may be charged. The main advantage of shared ownership is that it can make getting onto the first rung of the property ladder affordable. Another great advantage of shared ownership properties is that they tend to be new or refurbished. In some areas, stamp duty on shared ownership property is waived.

You will need a small deposit, a shared ownership mortgage to buy your share and a sum of money to pay for administration costs. Most shared ownership schemes are administered by local HomeBuy Agents. To find out who your local HomeBuy agent is, email

Request shared ownership mortgage advice here. To

Shared ownership mortgages are offered by many mortgage lenders and if you are considering taking out a shared ownership mortgage you should seek specialist, no-commitment, shared ownership mortgage advice. Buying your first home, you will also need a solicitor for conveyancing, wills, agreements etc.

Shared Ownership in a nutshell:

  • You own part of the property and pay rent to a co-owner in addition to your mortgage payments
  • Usually operated though local council or housing association
  • Brand new and refurbished properties available
  • Properties available on open market (see sites like Rightmove, Zoopla and Prime Location)
  • You can start owning as little as 24% of the property and buying more, known as staircasing. Rents decrease
  • The deposit and mortgage requirement will be lower as you are only buying part of the property
  • You still need 10% deposit but just of the share you are buying
  • Service charges can bump up monthly costs

You will You will need to contact an independent shared ownership mortgage advisor to assess your requirements and they may also put you in contact with the right HomeBuy agent. You are under no obligation when you contact a mortgage advisor.

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