I can't afford the deposit on a property! What are my options?

Shared Ownership is an alternative home-buying product for people who would like to purchase a property but can’t afford to buy on the open market. Shared Ownership costs are usually lower than other housing options.

Shared Ownership allows you to buy a percentage of a property, paying a mortgage on the share you own, and paying rent to a housing association on the remainder. You will be buying a leasehold house or apartment, and this will be either a new build or resale home.

How does it work?

Shared Ownership offers you the chance to buy an initial share of a home worth between 10% and 75% of its market value. You will pay rent to the housing provider on the rest.

The rent is less than the rate charged on the open market and usually charged at 2.75% of the property value per annum.

You will pay a mortgage on the share you own.

How much deposit will I need to find?

Your deposit will be 5-10% of the price of your share, not of the full market value of the whole property.

Will I have to pay Stamp Duty?

Stamp Duty Land Tax (SDLT or simply ‘Stamp Duty’) can generally be deferred until your share reaches 80%.

Can I buy further shares over time?

You can buy further shares via a process known as ‘staircasing’ – and in most cases can staircase all the way to 100%, if and when you choose to do so. The price of buying further shares will be based on an independent valuation at the time that you purchase the further share. 

Do I qualify for Shared Ownership?

To qualify for this scheme the following criteria must be met.

•    You must be at least 18 years old.

•    You should not be able to afford to buy a home suitable for your housing needs on the open market.

•    You must have a good credit history.

•    You need to have a deposit for the share that requires a mortgage which is usually 5-10% of the share you are buying.

•    Outside of London, your annual household income must be less than £80,000.

•    In London, your annual household income must be less than £90,000.

How do I find a property?

You can find an organisation that sells shared ownership homes in England (excluding London), through your local authority or, if within London, on the Homes for Londoners website.

Other places to look for a shared ownership property include housing associations, local councils and homebuilders. Depending on the area, there may be additional eligibility criteria. For example, homes reserved for people who already have a local connection to the area.

A good place to start your search is the Gov.UK website.

How do I find a mortgage?

Speak to our qualified independent mortgage brokers who may be able to assist you.