Shared Ownership

Shared ownership schemes are provided through housing associations. You buy a share of your home, usually a minimum of 25% of the market value of your property, and pay rent on the remaining share. The remaining share is owned by the housing association, and the rent you pay can be up to 3% of the association's share of the property value.

Shared ownership properties are leasehold properties, meaning you will own the leasehold for a fixed period of time, typically 99-125 years. You also have to pay a service charge for the property, which is usually charged on a monthly basis.

Often you have the opportunity to buy additional shares in the property, ranging from 10% to 25% a time. This process is known as staircasing. The cost of your new share will depend on how much your home is worth when you want to buy the share. If property prices in your area have gone up, you'll pay more than for your first share. If your home has dropped in value, your new share will be cheaper. The housing association will get the property valued and let you know the cost of your new share. You'll more than likely have to pay the valuer's fee. With shared ownership homes, you may also have the option to purchase the freehold once you reach 100% share.

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