Property Buying Guide

Shared Ownership

Shared ownership means owning part of a property with another party (usually a Housing Association) and paying rent to them for the part that they own but allow you to live in. They do not live in the shared ownership property with you. You may be able to increase your share as time goes by, sometimes to 100%, this is called 'staircasing'.

Since 2005 when housing in the UK has become a real issue for the government, shared ownership has become a buzzword.

The government's shared ownership schemes  are primarily but not exclusively key worker shared ownership schemes. These schemes are operated under the name 'New Build HomeBuy'.

The main advantage of shared ownership is that it can make getting onto the first rung of the property ladder affordable. Another great advantage of shared ownership properties is that they tend to be new or refurbished. In some areas, stamp duty on shared ownership property is waived.

You will need a shared ownership mortgage to buy your share and a sum of money to pay for administration costs.

Shared ownership mortgages are offered by many mortgage lenders and if you are considering taking out a shared ownership mortgage you should seek specialist, no-commitment, shared ownership mortgage advice.

You will need to contact an independent shared ownership mortgage advisor to assess your requirements and they may also put you in contact with the right HomeBuy agent. You are under no obligation when you contact a mortgage advisor.

As well as taking mortgage advice you could contact your local HomeBuy agent to find out if you might be entitled to a shared ownership property - keep your options open at this stage. 
 
When people talk of 'do it yourself shared ownership' they usually mean buying property with another investor, taking out a shared ownership mortgage on the part you own and paying rent to the other private property investor for the remainder.

Most of the schemes on offer are government-sponsored and available only to key workers and others in priority need, but there is now at least one private scheme available, whereby a first time buyer is paired up with an investor under a shared equity scheme. Unlike the government's schemes which operate only with new or refurbished properties, this one can be used for any type of property in any area.  Again, the government schemes are almost wholly concentrated on flats and apartments rather than houses.

If you are thinking of buying a property with a friend, family member, stranger or co-investor, this is known as joint ownership or joint equity.

More about shared ownership in our guide: 

What is New Build HomeBuy and how does it work?  l Who is eligible and what are the selection criteria?  l  Special features and how to apply l What is involved with shared ownership and who can apply? l How do I increase my share and how much do properties cost?  l  What rights and responsibilities do I have? l Are there restrictions on resale? l Can I buy with someone? And what about finance and legal issues?  l Where do I start and what happens next?  l  What questions should I ask?  l  Will shared ownership really enable more first time buyers to buy a home? l Shared Ownership Mortgage basics l Benefits and pitfalls of shared ownership l Shared ownership schemes run by house-builders l The First Time Buyers Initiative/English Partnerships

Some local shared ownership HomeBuy agents:

Search UK shared ownership HomeBuy Agents for shared ownership in London,  Guildford, Brighton, Bath, Cambridge, Oxford, Manchester, Liverpool, Leeds, York, Newcastle, Northampton,  Birmingham,  Bristol,  Camden, Croydon,  Dorset,  Essex,  Hampshire,  Kent,  Berkshire,  Surrey,   Sussex,  Oxford,  Hertfordshire,  Bedforshire,  Scotland,  Edinburgh,  Northern Ireland , rest of UK

Useful external links:

www.direct.gov.uk
www.communities.gov.uk
www.englishpartnerships.co.uk
www.housingcorp.gov.uk
www.housing.wales.gov.uk
www.communitiesscotland.gov.uk
www.nihe.gov.uk


Most useful and most popular pages on this site:

Look for your First Property l Seek First Time Buyer Mortgage Advice l See our Best First Mortgages Comparison Table l Find out about First Time Buyer Mortgages l Find out How to Buy a House l Learn all about The First Time Buyer Mortgage 

If you're looking for a short cut to your first home, we recommend you look closely at the following three options.
 
1   Consult a mortgage advisor to see if you can afford it on your own.

2   See if there are any new-build bargains in your area

3   If you still can't afford what you want, speak to your parents about how they can help and revisit the above options with their input taken into consideration.