What is shared ownership?

Shared ownership is an opportunity to buy some parts or shares of the property, and if you are living in the property, you have to pay the rent for the other part of the property, and in most cases, the rent you pay is also at a discounted rate as compared to market rate. Shared ownership homes are usually between 25% to 75% of the property. The remaining shares can be owned by housing associations or another individual.

Benefits of shared ownership

It is like a dream for many people to own a home, but many people cannot simply afford the high prices of properties and massive deposits. Therefore, the shared ownership scheme is an affordable option for people who want to own a house but can't afford to buy, as shared ownership properties are mostly at a lower property value as compared to the open market. 

Also, you don't need to save for huge deposits that are mostly required for property purchases but only need to pay a deposit according to your shares and mortgage payments.

With the increase in income, you can also increase the It gives you the option to buy the other parts of the property when you into.

The downside of shared ownership

Although shared ownership is becoming increasingly common among those wishing to buy a home, there are some challenges that come with it. Because you have limited ownership of the shared ownership property if you want to sell it, you must tell your landlord, and he can either acquire the part or find a buyer within a certain time period.

You may be responsible for your contribution to any alteration in the building. Sometimes it may be a significant expense if the property needs any repair work.

Also, sometimes, the mortgage options are limited in the case of shared ownership, and buyers have to pay rent for the remaining property. 

Eligibility criteria for shared ownership

In order to meet the shared ownership eligibility, you must meet these conditions.

  1. First-time buyer
  2. Income less than £80000 (£90000 pounds specifically in London) per annum
  3. Deposits are unaffordable for you
  4. Good credit history of being able to afford monthly payments
  5. Some housing associations might require you to have some local connections in the property area.


If you want to talk to our experienced conveyancing solicitors for advice, contact us at   08082503516. We are also pleased to provide you with an advanced conveyancing tool that delivers transparent and competitive pricing.


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