Shared Ownership Properties
Shared ownership information is provided by Share to buy ltd.
Shared ownership homes offer a low cost way to get on the home ownership ladder. Shared ownership makes housing affordable.
Latest News
100% shared ownership mortgages and great 90% open market deals
20th January 2012
We now have access to 100% shared ownership mortgages. Customers can access zero deposit mortgages for part buy part rent but they must have no adverse credit history. More details here. We have also cut our open market 90% exclusive discount rate with no fees or early repayment charges. Read about our 10% deposit option for young professionals and first time buyers.
Shared ownership 2012
9th January 2012
We look forward to an exciting year for first time buyers in 2012. At Share to buy, we are optimistic that 2012 will bring new products and opportunities in shared ownership and affordable housing. As always, we will reguarly be adding properties tn our shared ownership property website. We also hope to bring forward exciting new mortgages for part buy part rent and open market first time buyer 90% mortgages.
Shared ownership housing: three key things to know:
Shared-ownership makes home ownership more affordable because you can part buy and part rent your home
Homebuy is the Government's range of shared ownership housing schemes including part rent part buy, rent to buy and shared equity or equity loan schemes such as FirstBuy and HomeBuy direct.
Sharetobuy.com provides a property portal for the following types of properties: shared ownership (inc part-rent part-buy); shared equity (including First Buy and homebuy direct) as well as retirement homes and rent to buy. If you are interested, please search for shared ownership properties in your area. If you have already been offered a shared ownership home, please contact Share to buy who can help arrange a shared ownership mortgage for most part rent part buy schemes.
- To find out about shared-ownership and part-buy part-rent in your local area, please visit www.sharetobuy.com where you can find a beginners' guide to shared ownership schemes as well as part buy part rent and shared equity properties in your area.
- For information on shared ownership mortgages, go to our mortgages page or visit Share to buy's shared ownership mortgage calculator to see how much you can borrow. The calculator uses daily updated shared ownership mortgage rates to provide a robust estimate of how much a shared ownership mortgage might cost.
What is shared ownership housing?
Shared-ownership is a great way into home ownership and is the main affordable housing scheme. If you can't afford to buy outright, you can part buy part rent your home. You can find more information about part rent part buy at www.sharetobuy.com.
You might buy a 25%, 50% or 75% share in your home. You pay a rent on the share that you don't buy normally set at an 'affordable' rate of, say, 2.75%. The bigger the share that you purchase, the less rent you have to pay. The shared ownership properties displayed at sharetobuy.com show you how the rent changes when you vary the size of the share (unless it's a resale in which case the share available is fixed). When you can afford to do so, you can buy more shares until you own your home outright in a process known as 'staircasing'. If you already own a shared ownership house or flat and are looking to staircase to a higher share, or even full ownership, contact the Share to buy mortgage team for more information on staircasing and remortgaging, or use Share to buy's staircasing calculator. There are even shared ownership schemes for disabled people and those over 55 years old. Indeed, you can find shared ownership retirement properties at sharetobuy.com.
The other share in a shared ownership property is usually owned by a 'housing association'. Alternatively, some shared ownership homes are provided by house builders directly on schemes called 'shared equity'. The HCA refers to such schemes as 'Equity Loan' schemes because the Government provides a loan to buy part of the home. First Buy is the latest Government equity loan scheme, following on from homebuy direct. Share to buy are also familiar with shared equity mortgages. Most shared-ownership homes are found in the major conurbations, with big schemes in towns like Milton Keynes and Swindon, and the biggest concentration of shared owneship flats to buy is in London, but there are rural schemes available in some areas though you should be aware that rural schemes are more likely to have a cap on the maximum equity you can staircase to. You can find out more about shared-ownership properties by clicking here. This includes shared ownership in London and other parts of the country. We are expecting to add more part buy part rent homes across England in 2011.
If you are interested in buying low cost affordable shared-ownership housing, including part buy part rent, you can use the drop down menu below to find information that is local to you - please note that we are currently constructing distinct local content and in the meantime some of these pages will simply transfer you to our shared ownership property website:
Select your local authority or county
This website, www.shared-ownership.org.uk provides general information on shared ownership housing. For details of actual shared ownership housing, including shared ownership flats and shared ownership houses available in your area, as directed above, please visit www.sharetobuy.com where you can find information on shared-ownership schemes that you might be eligible for. In areas where a lot of shared ownership housing has been built and sold, (e.g. Milton Keynes) estate agents advertise 'second-hand' shared ownership homes known as 'resales'. Note that there is generally more mortgage choice when purchasing a shared ownership property on a second hand resale basis.
To find out more about shared-ownership in general, click on the shared ownership information link.
The Government has recently introduced new types of shared ownership housing called HOMEBUY. To find out more about the Government's Homebuy scheme, click on the HOMEBUY link.
Who can buy shared ownership housing?
Shared ownership housing schemes are usually intended for people who cannot afford to buy a suitable home in any other way. However, the way in which this is defined will vary considerably with some shared ownership schemes merely being restricted to first time buyers and others to applicants living within a certain borough. Generally, priority goes to the following groups in the first instance, in order of priority: existing social tenants; serving military personnel; and then on equal priority ranking, local priorities as set by Local Authorities.
When a new housing scheme is developed that includes shared-ownership homes for sale; housing associations will usually advertise shared ownership properties for sale. If you are interested in shared ownership housing apply to the local authority or a housing association that offers shared ownership housing in your area as soon as possible.
You don't have to find a new housing development to be able to buy a shared ownership property. When shared owners want to move home, their property will either be offered to the housing association to find a buyer, or will be advertised in the local estate agents (i.e. as a second hand 'resale' property as described above).
Who does the repairs on shared ownership properties?
The shared ownership lease between you and the housing association will set out your rights and responsibilities as a shared owner. Although you have not bought the property outright, you will generally have the normal rights and responsibilities of a full owner-occupier. In particular, you will generally be responsible for the cost of repair and maintenance to your home, paid through a monthly fee known as a 'service charge'. Take care when researching shared ownership properties for sale to ask how much the service charge is, as well as the rent. Arrangements may be different on FirstBuy, Homebuy Direct and other shared equity schemes with developers.
What is 'FirstBuy'?
FirstBuy is a type of shared equity or equity loan product. This type of scheme is where the purchaser buys a home in the usual legal way, taking 100% ownership of the property from the outset. However, part of their deposit is in the form of an 'equity loan'. With First Buy, the equity loan makes up no more than 20% of the deposit and the customer would usually put down their own 5% deposit. The remainder of the purchase is a mortgage for 75% of the price giving the customer access to potentially competitive 75% LTV mortgages yet putting down just a 5% deposit of their own. The 20% equity loan is shared equally between the developer and the Government. Hence, FirstBuy is a Government affordable housing scheme because it includes a Government equity loan for home purchase. FirstBuy equity loan follows on from a prevoius shared equity scheme with a Government equity loan called homebuy direct. This had a slightly different arrangement but was broadly similar to FirstBuy.
What is 'First Steps'?
First Steps is the Mayor of London's brand to promote low cost home ownership throughout Greater London. First Steps London will have its own branding for London equity loan/shared equity and shared ownership/part buy part rent in the capital.
What is 'shared equity'?
Shared equity is not the same thing as shared ownership. With shared equity, you generally use an 'equity loan' to form part of a deposit but the person buying the home owns the whole property (though the provider of the equity loan usually has an agreement to share in any appreciation). From a customer's perspective, the main difference between the two schemes is that you are likely to need a larger deposit on shared equity as the shares typically start from 75%, compared to as little as 25% on shared ownership. Also, the main providers of shared equity and other equity loan schemes tend to be major housebuilders. The main shared equity schemes are both for new build homes and are First Buy and homebuy direct.
Where can I find research on shared ownership and affordable housing?
Various papers have been published on affordable housing over the years, by organisations such as the Chartered Institute of Housing, National Housing Federation and various housing associations. If you are looking for research material on low cost home ownership, your best bet is probably to contact the Homes and Communities Agency in the first instance.
How can I get a mortgage on my shared ownership home?
Go to sharetobuy.com to contact the Share to buy mortgage team, who are experts in shared ownership mortgages and don't charge any fees. Or click here for Share to buy's shared ownership mortgage calculator to see what you could borrow on a Shared Ownership Mortgage, and how much it might cost.
Questions and answers
What is shared ownership?
Shared ownership was introduced to help people who cannot afford to buy a home outright. Through shared ownership you buy a share of the property and pay a rent on the remaining share you do not own. Gradually you may buy further shares and eventually own your home outright.
What is a housing association?
They are non-profit making organisations who provide and manage homes for rent and sale for people in housing need who cannot afford to rent privately or buy. Most housing associations provide housing with the help of public money given by the Government or a local authority; in some cases, the association may provide housing using its own money.
Who can buy through the shared ownership scheme?
The scheme is intended for people who cannot afford to buy a suitable home in any other way. Shared ownership schemes will vary in their eligibility but generally, priority will normally be given to existing public sector tenants or those on local authority or housing associations' waiting lists.
Although you have not bought the property outright, you will have the normal rights and responsibilities of a full owner-occupier.
You are advised to ask your legal adviser as well as the housing association if there are terms you do not understand.
Can I buy a shared ownership home with someone else?
The term ‘shared ownership’ refers to sharing ownership with a housing association, not another individual. But joint applications are generally fine!!
What kind of property can be bought through shared ownership?
Shared ownership homes may be new or renovated flats or houses which are sold through housing associations. Prices vary according to location but are expected to be within the means of those people who cannot afford the prices of properties available for sale in the open market. Just note that mortgage availability can sometimes be more restricted for shared ownership new build flats than on shared ownership houses or second hand shared ownership properties ('resales').
How does shared ownership work?
The scheme allows you to purchase a share of a property usually from a housing association. The share you purchase is funded by a mortgage which you will need to arrange with a bank or building society. The remaining share you do not own is rented from the housing association.
The size of the share to be purchased will depend on your income and savings and you can buy as little as 25% or as much as 75%. You will also have to pay a service charge when you buy a flat. Later on, if you wish and can afford to do so, you can buy further shares until you own the property outright.
Remember that house prices can go up or down. This means that sometimes you might pay more for buying additional shares or have to sell at a price less than you originally paid. When you purchase through shared ownership, the housing association will grant you a lease which sets out your rights and responsibilities.
What does the shared ownership lease entitle me to?
Whether you buy a house or flat under shared ownership terms, the housing association will grant you a lease usually for a period such as 99 years. It will entitle you to live in your home as an owner-occupier. It will also entitle you to buy further shares in the property and sets out how you can do this. It also states that you can sell your property.
Other points covered in the lease set out your responsibility for repair and payment of rent and service charge. Although you have not bought the property outright, you will have the normal rights and responsibilities of a full owner-occupier.
If you have any questions on how the scheme operates ask the housing association selling the property. You are also advised to take your own legal advice on the terms and conditions of the lease, so please consider obtaining a quote from our shared ownership solicitors
This site includes information about shared ownership housing and homebuy schemes including:
shared ownership
shared-ownership
shared-ownership housing
affordable home ownership
low cost part buy rent
housing association
RSL Registered Social Landlord
share
home-ownership
homebuy
home buy
Shared ownership mortgage calculator
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Share To Buy
We specialise in shared ownership. On our website you can find part buy part rent homes and mortgages!
If you have any difficulties in making payments on your shared ownership mortgage, please contact your mortgage provider or housing association immediately.