Is shared ownership right for me? Your questions answered
Nick Lieb, head of operations at Share to Buy, explains who is eligible to buy a shared ownership home and what they should consider before they do
Who is eligible for shared ownership?
To be eligible for shared ownership, you must either be a first time buyer or you must not currently own a property. Purchasers must be over 18 years old and have an annual household income of less than £90,000 to buy in London (or under £80,000 outside of London). Schemes may have specific criteria, such as giving priority to those who already live or work in the borough, so for full eligibility you should check with the housing association.
What kind of properties are available – is it just new build flats?
There are a wide range of properties available through shared ownership. On Share to Buy, the UK’s best-established property portal for first-time buyers, we list thousands of properties, from new-build apartments and houses to resale shared ownership homes. You can purchase a family sized home in the suburbs or a one bedroom apartment in the heart of the city!
Can I get a mortgage?
Once you have chosen your shared ownership property, you will need to look into getting a shared ownership mortgage. The housing association will put you in touch with an independent financial advisor who will assess you and advise you through the process. You can appoint your own financial advisor to guide you through the process after your assessment, but you should use a financial advisor with specialist shared ownership knowledge.
Will the rent increase over time on the portion I don’t own?
Normally, the rent on your shared ownership is reviewed once a year by the housing provider. If your rent increases it will be in relation to the Retail Price Index and will typically be between 0.5 and 2 per cent.
Can I make improvements to my home, and who pays for maintenance?
While you’re able to decorate your home as you please, you should always consult the terms of your lease before undergoing any major home improvement projects. Any home improvements, maintenance, or repairs will be your responsibility. However, your housing provider is responsible for maintaining any communal areas – for which you will usually pay a service charge. The terms of this will be detailed in your lease.
Can I sub-let a shared ownership property if I need to, or take in a lodger?
Shared ownership leases do not allow you to sublet your home, and it may also be a condition of the mortgage. If you’re thinking about taking in a lodger, you should check your lease and with your housing association first.
Will it be difficult to sell my home on?
Should you decide to move on from your shared ownership home before you have staircased to 100 per cent, your housing association will be able to help you navigate the process. When selling your shared ownership home you will be selling the shares you have previously purchased, meaning that the new buyer must purchase a share equal to or higher than yours. You can sell whenever you like, and there is no minimum share percentage you must reach.