How does Shared Ownership work?
Shared Ownership is a way of buying a home that lets you part-own, part-rent the property you live in. The great thing about Shared Ownership is that it requires a smaller deposit compared to buying a home outright.
During your financial assessment the independent mortgage advisor will help determine the size of the share you can afford to buy. The minimum share you can purchase is generally between 25% – 35% of the total cost of the home. As your income rises you can increase the share you own until you eventually own 100%. This is called staircasing.
You’ll need a deposit of around 5-10% of the value of the share you’re buying. This means you will need a much smaller deposit than if you were buying 100% straight away.
Once you’ve moved into your home you will pay a monthly mortgage on the share you’ve purchased, subsidised rent on the share you don’t own and a monthly service charge. The service charge goes towards maintaining the building and its environment to a high standard.