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There are a number of schemes available to make buying a home much easier, including Shared Ownership. It’s nice to have so many options, but it can be difficult to know which one is right for you and your lifestyle. Your choice may also depend on your budget and future plans, so it’s important to understand the ins and outs of each scheme. So, who is Shared Ownership for?
Shared Ownership is an alternative home ownership scheme, allowing you to purchase a share in a new-build or resale property. This scheme is designed for first-time buyers and those getting back onto the property ladder. The smaller initial payments make owning a home accessible earlier, with the goal of staircasing to full ownership.
Read on to find out more about who Shared Ownership is for and decide if it’s the right choice for you.
Put simply, Shared Ownership allows you to buy shares of a home, at whichever amount you can afford. You’ll then pay rent, usually to a housing association, on the remaining share you don’t own. As time goes on, in most cases, you’ll then be able to purchase more of your home, in a process known as ‘staircasing’, up to owning 100% of the property.
Shared Ownership status can only be given to new-build properties, constructed as part of a development using government subsidies. You could also buy a property that is being resold by another Shared Ownership home owner.
You can find out more about the process of Shared Ownership in our information hub, or contact our friendly team with any questions.
Shared Ownership Information Hub
The Shared Ownership scheme is designed for first-time buyers and those who don’t currently own a home. For example, if you’re buying a property after the breakdown of a relationship, this is an ideal option for you.
A minimum level of income and savings will be required to begin the process of Shared Ownership. This will be determined by the following criteria:
Your deposit could be as little as 5% of the share value of the home, so why not use our affordability calculator to see what could be available to you?
Buying a home using the Shared Ownership is typically suitable for first-time buyers or those getting back onto the property ladder. However, there are also requirements that you must meet in order to be eligible for this government scheme:
One of the following statements must also be true:
Shared Ownership is a popular option for first-time buyers or those looking to expand their home, but the scheme is also open to older people. Known as the Older Persons Shared Ownership (OPSO) scheme, people aged 55 or over are able to buy part of a new home and pay rent on the remaining share. This makes it an ideal option for older people looking to downsize their family home or find a new property that is suitable to their current needs.
The OPSO scheme differs from Shared Ownership not only in its age criteria, but also the maximum share available for purchase. Typically, you can purchase up to 100% of a Shared Ownership home. Under the OPSO scheme, the maximum share available for purchase is typically 75%. However, on the majority of OPSO homes, once you own 75%, you don’t pay rent on the remaining 25% share. Not all Shared Ownership homes will be available for OPSO, you will need to speak to your Housing Association to find out which properties are eligible.
For over 20 years, Plumlife has been making home ownership easier in the North West, Yorkshire and beyond. With a number of options available to you, our helpful team is bound to find a property that suits your needs, budget and lifestyle, so get in touch today!
Shared Ownership is often cheaper than buying a property outright, but it may not be the best choice for you. You can read more about the comparisons between outright purchase and Shared Ownership in our helpful blog, or contact our team with any questions!
No, you can’t make an offer on Shared Ownership properties. They are purpose-built for the scheme by housing associations, using government subsidies. The homes are then valued by a RICS-certified specialist surveyor, and this is the figure your payments are based on. This does have a positive side, however, as it removes the need for any bidding wars and sells homes on a first come, first served basis.
Yes! You can sell your Shared Ownership home at any time, but the process is dependent on the shares you own. If you now own 100% of your home through staircasing, you can typically sell just as you would with any other home; on the open market.
If you own less than 100%, the housing association or local authority that owns the remaining share will get ‘first refusal’, meaning they have the right to buy or sell your shares before the process moves on. After this, if an eligible buyer is not found within the specified nomination period, you’re free to advertise on the open market through an estate agent.
Important: Make sure to check your contract to be sure of the agreed nomination period. This should also tell you if your home cannot be sold the usual way at 100% ownership.
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