What types of Shared Ownership properties can I buy?

You can buy both existing and new-build Shared Ownerships properties under the scheme. Providing they are owned by an approved qualifying body. In most cases, the approved body will be a Housing Association or local authority. But you might also find properties available through housing action trusts, the Northern Ireland Housing Executive, the Commission for the New Towns and some development corporations.

How does stamp duty work on a shared ownership property?

Stamp Duty Land Tax (SDLT) on Shared Ownership properties can be a bit complex. Below we have done our best to simplify the options you will face and how it works. Your two main options are: Pay on the full value: You pay SDLT on the entire market value of the property as if you were buying it outright. This can be a higher upfront cost, but it avoids potential future SDLT payments when you increase your share through staircasing. Pay on your initial share: This option is usually cheaper upfront in the short term and it involves you paying SDLT only on the value of the initial share you’re buying. However, you will need to pay Stamp Duty again if you want to reach a share of 80%[3].

What is the minimum Shared Ownership share I can purchase?

The original Shared Ownership scheme stated you must purchase a minimum share of 25%. Although the updated scheme announced you can own as little as 10%.

What is the maximum Shared Ownership share I can buy?

The maximum share of the property you can buy under the Shared Ownership scheme is 75%. If you are an older person and reach this stage, you will not have to pay rent on the remaining share. If you increase your share to 100%, you will own the property leasehold outright. But you may still need to coordinate with the Housing Association, local authority, or other approved body if you plan to sell it. When you buy additional shares of your property, be aware that the cost will be at the prevailing market rate. If you already own 25% and buy another 25% then the price will be higher if the property value has gone up. Likewise, it will be cheaper if the property value has decreased.

When can I buy more Shared Ownership shares?

The Government does not place any time restrictions on when you will be able to buy a greater share. However, local authorities or Housing Associations may have their own individual rules. And they may impose other staircasing restrictions. On top of this, you will need to pass a mortgage lenders affordability checks again, as they will reassess your situation to ensure you can afford the new mortgage payments.

How is Shared Ownership rent calculated?

Individual local authorities or Housing Associations will each define their own methods to calculate your rent. But the typical annual figure is based on 3% of their ‘retained equity’ in your home. ‘Retained equity’ is the approved body’s portion of the Shared Ownership property.

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A Shared Ownership mortgage broker can help you navigate the unique complexities of this scheme, which allows you to buy a percentage of a property with a mortgage and pay rent on the rest. They’ll guide you through the process of securing a mortgage for your share and understanding the rental payments to the housing association, making homeownership more accessible.

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Want to purchase more of your property?

Ready to own more of your Shared Ownership home? Staircasing lets you buy extra shares, cutting your rent and boosting your equity. Learn how to staircase and if it’s right for you.

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Shared Ownership but you have bad credit?

Got bad credit but want a Shared Ownership mortgage? It’s often still possible! Specialist lenders can help. Discover how to navigate Shared Ownership with a less-than-perfect credit history.

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