How affordable is Shared Ownership?

Buying through Shared Ownership gives you access to properties in lots of great locations in London and the South East. It’s a much more affordable way to own a home compared to buying your home outright.

See all new L&Q Shared Ownership properties as they are released by visiting our property page.

Affordable properties in great locations across London

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.

Paul bought a Shared Ownership flat with L&Q in Stadium Place, Walthamstow.

“I was really impressed when I first went on the L&Q website because they have such a wide variety of locations for their Shared Ownership properties. I would have been keen to live in any one of the areas that I saw listed.”

I bought a 25% share in a home worth £380,000. I was able to pay a deposit which was £4,7501.

So my monthly payments are:
Mortgage – £400
Rent – £650
Service charge – £250
That’s a total of £1,300 a month.

Some things to remember

Applying for Shared Ownership doesn’t need to be an overwhelming experience. L&Q are here to guide you every step of the way. Before you start the process, have a read through this checklist.

Have your documents ready for the Shared Ownership application form

First and foremost, you will need to complete our Shared Ownership application form before you can register your interest in our properties. The form will take around 20 minutes to complete.

It will ask you things such as:

  • Your personal details
  • Annual household income and savings
  • Financial commitments

Please have this information ready to help make your application easier.

Write down your reference number

Once accepted, you’ll be sent an acceptance email with a reference number. Take note of this number and have it handy, as you’ll need it throughout the home buying process.

You’ll need to register your interest for individual properties

Following a successful outcome from your application for Shared Ownership, you will need to register your interest in our properties. The property form takes less than a minute to complete, and it ensures that you receive an email alert when property prices go live. You need to repeat this process for every property you’re interested in.

Do your research

Read up on what Shared Ownership is all about, and how the process works.

Remember, L&Q are here to guide you through if you have any questions.

Have your reservation fee ready

Once you’ve found a property you love and have organised a viewing, a reservation fee of £500 is required to secure your interest. This fee is refundable if you change your mind before you’ve been offered the property.

Have your deposit ready

You’ll need around 5-10% of the value of the share you’re buying.

There will be an identity check before an offer is extended

An identity check is one of the last checkpoints before your offer on a property is accepted. This identity check will be carried out in accordance with UK money laundering regulations. Once your identity is verified, an offer will be extended to you.

You can find out more about the home buying process by watching our video guide to buying a Shared Ownership home.

Next Steps

Check whether you are eligible for Shared Ownership by completing the Shared Ownership application form.

(1) The figure quoted is a percentage share and is a guideline and may vary according to individual incomes and circumstances.