My Chase Evans
Shared ownership
What is Shared Ownership?
Shared Ownership is an alternative and more affordable route to property ownership that enables people to buy an initial share of the property at market value while paying rent to a landlord on the rest.
The scheme is government-backed and is provided through the Shared Ownership and Affordable Homes Programme 2016/2021 (SOAHP 2016/21). The Shared Ownership lease is also known as ‘Part-buy/Part-rent’.
Shared Ownership was introduced in the 1980s via the Housing Act 1980 and was last updated in 2020/21. It appeals to first-time buyers and those not able to secure a big deposit or afford a large mortgage required for a 100% home purchase.
All shared ownership homes (houses and flats) are leasehold properties.
HM Government’s resource page on Shared Ownership is available HERE here:
How does the Share Ownership work?
The share that a person can buy within the scheme can be between 10 - 75% of the total value of a property. The minimum deposit is 5%.
On the remaining share, owners/tenants pay subsidised, affordable rent. They also have the option to gradually buy more shares and move towards full, outright ownership.
Owners of a shared ownership property can increase the shares by as little as 1% (for the first 15 years) if paying for additional shares in cash, or 5% if paying with a remortgage.
Other charges payable include service charges, ground rent, and regular utility bills.
Who can apply to buy a Shared Ownership Property?
· buyers in England with a household income less than £80,000 (£90,000 a year or less in London)
· buyers who do not own a property or part of a property
· buyers have to be over 18 years old
What homes are available to buy through the Shared Ownership?
· a new-build home
· an existing home through a shared ownership resale scheme
· a home that meets specific needs, such as has a long-term disability (for example: a ground-floor flat)
The latest Shared Ownership updates:
· From 12 October 2023, any new Homes England shared ownership lease model that is granted to a buyer must include a Rent Review schedule that enables the ‘specified rent’ to be increased once a year by a permitted maximum of CPI plus 1%
· tenants are under no obligation to increase their shares and can continue to live in the property they own a share
· new shared owners have 10 years of repairs and maintenance covered by their landlord
Where to find Shared Ownership Property to buy?
· Housing Associations
· Local councils
· Homebuilders
· Portals, Zoopla and Rightmove
CLICK HERE to link to Own Your Home, a website listing a range of alternative government schemes for the first time buyers including Shared Ownership