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Flat purchase through 'Shared Ownership'.

How does this work?

Asked on Jan 5 2014, Home Finance in London | Report content

Answers (3)

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  • The Government's Shared Ownership scheme is for buyers who cannot afford to buy a home outright. The criteria to be eligible include: - Your annual income must be less than £60,000 (£66,000 in London), OR, in a family a household income less than £74,000 (£80,000 in London) - You must purchase a home from a participating Housing Association You buy a share of the property between 25%-75%, comprised of a cash deposit, which you must finance, whilst the rest is financed through a mortgage. The remaining share of the property is purchased by the Housing Association and you pay rent to the HA on the portion they own. The rent is normally at a discount to the market rate and increases at the rate of inflation each year. I have linked to a much more detailed article below that goes through the scheme and what exactly is involved, as it is too much to write here! The scheme is reasonably complicated, so be sure to know the ins and outs before committing. Here is another link to the Government site on shared ownership schemes:

    Web reference:

    Answered on Jan 7 2014, Report content
  • You part own, part lease. Some you can opt to buy the lot some you can't. There are many different types but that's the basics.

    Answered on Jan 15 2014, Report content
  • Hi Robj44, Shared ownership is essentially a scheme that works by giving those who cannot afford to buy a home the chance to purchase a portion of it. It means that you will pay rent on the part of the house that you do not own (typically ownership will be 50/50 in the first instance). The benefit of buying through shared ownership is that over time you are able to increase the proportion of your house that you own. It will mean that as you buy more and more shares, you eventually own the full house, even if you could not afford to at first. However, there are certain conditions that need to be adhered to. First of all, you need to be able to prove that you could not afford to buy a home through the normal methods without this assistance. You also need to meet the requirements for a normal mortgage, such as being employed with a wage good enough to allow you to afford the home and having a decent credit rating. Many thanks, Scott

    Answered on Jan 20 2014, Report content

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