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What is Shared Ownership?

Shared ownership is a way of part-owning, part-renting a property that is designed for people who can’t afford to buy a home outright. It is available through housing associations and there are both government-backed and privately-operated schemes.

With shared ownership, you buy a stake between 25% and 75% of the market value of your property with a mortgage. You pay rent on the remaining share of the property, which is owned by the local housing association.

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 lease on them for a fixed period of time, typically 99 years.

You also have to pay a service charge for the property, which is usually charged on a monthly basis.

Where can I get a shared ownership mortgage?

Not all lenders offer mortgages for shared ownership. Some of the major mortgage lenders that do include Nationwide, Santander and Halifax.

You may not be able to borrow 100% of the share you are buying and there may be extra restrictions for buying a new-build property. For example, Santander will only lend first-time buyers 90% of the share they are buying, if it’s a new-build house and 80% if it’s a new-build flat.

The more money you have to put down as a deposit, the better the mortgage deal you will be able to get.

Police Mortgages are recommended by a large number of housing associations as we have a wealth of experience at supporting first time buyers into a shared ownership property.

Shared Ownership FAQs

What shared ownership schemes are available?

There are a range of government schemes under the umbrella title HomeBuy. The best-known is New Build HomeBuy. There are also schemes specifically for social tenants and those who want to first save for a deposit.

Some properties are only available to key workers, such as nurses and teachers, and there are certain criteria you must meet on income, residency and other measures.

Can I buy extra shares in my home later?

Yes. Shared ownership schemes offer you the option of increasing your percentage stake in the equity of your home as and when you can afford to. This is called staircasing. The cost of increasing your share will depend on the value of the property at the time.

To do this you will need to pay for the housing association to carry out a valuation of the property and arrange a mortgage to buy the extra share.

What happens if I want to sell the property?

You can sell your shared ownership property at any time but the housing association has the right to find a buyer for your home, if it still owns a share of it and to buy it back first.

If you bought your home through Social HomeBuy and sell it within five years, you’ll have to pay back all or some of the discount.