What is Shared Ownership?
Shared Ownership allows you to buy a share of a property (typically 25-75%) and pay rent on the portion you don't own. You need a mortgage for your share and a deposit based on that share value, making homeownership accessible with less upfront capital than buying outright.
The scheme is offered by housing associations on new build and some resale properties. Over time, you can buy additional shares (staircasing) until you own the property outright.
How It Works
You buy an initial share (minimum usually 25%) with a mortgage and deposit. On the remaining share owned by the housing association, you pay rent - typically below market rates. Combined mortgage and rent payments should be more affordable than buying outright or private renting.
For example, on a £200,000 property buying a 50% share, you'd need a mortgage and deposit for £100,000. You'd pay rent on the remaining £100,000 share to the housing association.
Eligibility Criteria
Shared Ownership is for households earning £80,000 or less (£90,000 in London). Priority is given to first-time buyers, though existing homeowners who can't afford to buy outright may also qualify. You must not already own a home when you complete the purchase.
Some schemes are restricted to specific groups - key workers, local residents, or military personnel. Check individual development requirements.
Staircasing
Staircasing means buying additional shares in your property over time. You can typically purchase additional shares (minimum 10%) at current market value. As you buy more shares, your rent payments reduce proportionally. Eventually, you can staircase to 100% and own outright.
Staircasing requires a new valuation and potentially a remortgage to fund the additional share purchase. Some lenders offer specific staircasing products.
Shared Ownership Remortgages
You can remortgage your share just like a standard property. When your initial deal ends, compare options from lenders who accept Shared Ownership properties - not all do. Some lenders specialise in this area and understand the scheme well.
Our brokers have access to Shared Ownership-friendly lenders and can help you find competitive remortgage deals whether you're staying at your current share or staircasing.