With Shared Ownership you don’t need a huge deposit. The way it works is simple. Under the scheme you part own and part rent your home. You’ll start with buying a share of a property (anything from 25% to 75%) on a 125 year lease – the length of the lease may vary. This means you’ll only need to find a deposit amount for the share that you’ve bought. You’ll also pay for a mortgage corresponding to the size of the share that you own, and you’ll pay rent on the rest.
So if for example you buy a 35% share in your home, your deposit will only be 5 – 10% of the share you purchase.
How much would you pay?
If you decide to buy 35% of a £400,000 L&Q home1:
You’ll need a deposit of at least 5% – £7,000
Mortgage – £777.50 (if you have 5%)
Rent – £595.83 (if you have 5%)
Service charge – £150 (may vary)
Note: If you have higher savings for a deposit your monthly payments will reduce accordingly or you may be required to buy a larger share.