How does Shared Ownership work?
You find a Shared Ownership property that you wish to buy, sometimes on the Help to Buy website or via an estate agent. You then purchase a share in that home, normally between 25% and 75%, but you can buy 10% of some homes, although this varies depending on the property. The share available for sale will be specified in the property listing.
For the remaining share of the property, you would then pay the property landlord, such as ourselves, a monthly rent. In many cases, the monthly cost of your mortgage, rent and any service charges can be much more affordable than paying rent on a private property.
Will I ever own the full property?
You may read about staircasing and wonder what it is. Well, staircasing is the term referring to buying more of your home in small parts until you potentially own the whole house. So, for example, if you own 50% at the start of your home buying journey, you could continue year on year to buy more shares of your home’s equity until you own the property outright.
Each time you buy a new share in the property the rent cost of your home will reduce but remember things like service charges may remain static, depending on the home and any maintenance costs involved.
It’s worth also noting that some properties have local restrictions placed on them to stop them being able to be bought outright. You can find out any limits on staircasing when you enquire about buying a property. If you know you want to own the home fully make sure it isn’t a property with this restriction in place.