Buying a home through a shared ownership scheme works in the same way as buying a traditional property. The difference is that you will only finance part of the value yourself. We will own the remainder. We then rent this part to you at a subsidised rent.
As per guidelines from Homes England (our regulator), you will be encouraged to buy as much of the property as you can comfortably afford, but always more than the minimum 25% (although for many properties the minimum share available will be 40%) and maximum 75%.
You will need to fund the purchase of your share by taking out a mortgage, or through capital that you already have, for example from the sale of a previous property.
Once you’ve signed on the dotted line you will be responsible for repairs and maintenance of your new home just like any other home owner. As part of the leasehold agreement you may also be required to pay service charges to cover maintenance of communal areas, depending on the type of property you select.
Can I choose my own house?
Yes, to some extent. If you want to go ahead, you’ll need to choose from our available properties. You will be able to add three to your application and we’ll do everything we can to offer you one of these.
You will never be ‘allocated’ a house. If you don’t feel there is anything that meets your needs, you’ll be added to a register to wait until something appropriate comes along.
After all, different people like different houses. We would never expect you to buy a house you don’t fall in love with.
Does shared ownership make a house purchase cheaper?
Yes and no. Although we provide affordable housing, the price you will pay for your home is a percentage of the full open market value as assessed by an independent valuer. There is no discount on this price.
The benefit of shared ownership is that the combined monthly cost of part-buying and part-renting will be cheaper than open market rents in most cases. This should allow you to buy and start paying for a house sooner. You’ll also get the benefit of any increases in market value of the part that you own in the meantime. Although unfortunately the reverse applies too – as with all house purchases, you should be aware that if house prices go down, the value of your share may decrease.