Your questions answered
Can anyone buy a shared ownership home?
Shared ownership is available to purchasers who can’t buy a home on the open market because they don’t have enough deposit or can’t secure sufficient mortgage. So to qualify for shared ownership you must meet certain criteria:
- Have a household income of less than £80,000 per year
- Not be able to afford to buy a similar property on the open market
- Not already own a property; if you do it must be sold before or at the same time that you complete the purchase of your new home
What other costs are involved?
As well as your deposit, you will need to pay for your valuation and solicitor and depending on who arranges your mortgage, fees to your financial advisor and lender. We advise purchasers to use a solicitor who is experienced in shared ownership sales and can provide you with details of suitable legal firms.
Share/rent figures for illustrative purposes only. Shared ownership available to qualifying purchasers only. YOUR HOME IS AT RISK IF YOU DO NOT MAKE MORTGAGE, RENT OR SECURED LOAN REPAYMENTS
Who does the repairs?
Shared owners have full responsibility for repairs and maintenance themselves
Do I need a deposit?
Your share is usually purchased using a mortgage and you will need a deposit to get a mortgage. The amount will depend on your individual circumstances and the lender that you use. It can range between 5% and 20%.
You will only need a deposit for the share that you are buying, not the full value of the property. So if you are buying 50% share in a home with a full market value of £135,000 and require a deposit of 10%, you will need £6,750 (i.e.10% of £67,500).
We advise all purchasers to seek independent financial advice when looking for a mortgage as not all high street lenders offer shared ownership mortgages; we can provide details of financial advisors who are experienced in shared ownership.
Do I have to get a mortgage or can I buy my share using equity from a previous home or savings?
We understand that some people are unable to secure a mortgage but do have access to funds to buy a share of a home. So we consider every case individually, taking into account personal circumstances, including why you are unable to get a mortgage.
Providing that you meet the criteria for shared ownership, are buying the maximum share that you can afford and have an income to pay the rent and any service charges that may be applicable to the home that you are buying, you may be able to buy a shared ownership home.