Shared Ownership is becoming an increasly more popular way to purchase a property. This may be because lender affordability calculations cannot be met or not having a deposit to purchase a property in the conventional way.

Shared Ownership bridges the gap between renting and purchasing a property in the conventional way. Shared Ownership offers the opportunity to purchase a share of a residential property (between 25% and 75% of the full market value). The unpurchased share is rented from a registered authority or a housing association. As the majority of new build properties for Shared Ownership are on housing developments, there is typically a monthly service charge payable to the housing association. This charge covers buildings insurance, street lighting, maintenance of communal areas (grass areas, playgrounds etc. as well as a lift, if the property is a flat). The service charge will vary across each development and will be dictated by the type of property, location and size of the development.

The deposit for a Shared Ownership purchase is as little as 5% of the share price, which makes for an affordable option for so many.

You can purchase more of the property in the future, which is known as 'staircasing' and is allowed by the majority of Housing Associations and lenders. You can purchase up to 100% of your property, subject to lender affordability checks and criteria requirements at that time.

It is important to know that when you purchase any additional share of the property, the cost of this additional share will be based on the current market value of the property and not the initial purchase price. The rent payments to the Housing Association will be adjusted depending on the additional share purchased. Rent is subject to an annual increase, the Housing Association or local authroity can provide more information about this.

Over the last 9 years I have worked with several Housing Associations, including West Kent Housing Association, Moat Homes, Orbit, Optivo, MHS Homes and Hyde New Homes.

 Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. 

Please note that some mortgages, such as commerical Buy-to-Lets, are not regulated by the Financial Conduct Authority (FCA).

The actual interest rate available will depend upon your circumstances. Please ask for a personalised illustration.