Understanding Shared Ownership

Shared Ownership is another way to buy your home. You buy a percentage and pay rent on the rest. We own just part of it – but you’re living there, you can decorate it and decide when to sell.

Buying a share may mean you need a lower mortgage and deposit than purchasing a property outright. This makes it a cost-effective way to own your own home and ideal for first-time buyers. Shared Ownership may work out less per month than renting privately.

You can buy a home through the shared ownership scheme if you cannot afford all the deposit and mortgage payments for a home that meets your needs. The maximum household income is £80,000.

You’ll buy a share ranging from 10% to 75%, we’ll tell you in the property listing on this website the minimum percentage that can be purchased.

You’ll need to be able to get a mortgage or have savings to cover the price of the share. You should remember that you need to pay your mortgage and rent payments each month as well as the usual household outgoings. To help you, we’ll carry out an affordability check.

Costs

Just like if you were buying any home, you should consider these costs:

  • Mortgage Deposit – from 5% of the share price, rather than the full value of the property
  • Legal Fees – check with your solicitor
  • Mortgage & Valuation fees – check with your mortgage broker
  • Stamp Duty Land Tax  – check with your solicitor

Once you’ve bought your home, the monthly cost will include:

  • A monthly mortgage payment
  • A monthly rent payment
  • A monthly service charge payment
  • Household bills – gas, electricity, water, council tax, TV licence, contents insurance


Mortgages are some of the biggest commitments you’ll make in your financial life. And with all the options, it can be hard to work out what they’ll cost you. Our Shared Ownership mortgage calculator can help.

Our Shared Ownership mortgage calculator

It’ll give you a simple, ballpark figure to show you the monthly payments you would pay on a typical Shared Ownership property.

You can also adjust the mortgage term, interest rate and deposit to get an idea of how those affect your monthly payments.

To get started all you need is the full price of the property you are interested in and the amount of deposit you have available.

Need professional mortgage advice?  You can see our recommended mortgage brokers here.