Shared Ownership

If you can’t afford to buy a home of your own on the open market, shared ownership gives you a chance to get your foot on the property ladder by buying a home in stages on a part buy/part rent basis.

How does it work?

You buy a share of a property between 25% and 75% initially and then pay a subsidised rent for the remaining share.

Shared Ownership properties are usually new build although resale properties do become available when shared owners sell their property.  All available properties are advertised with the Help to Buy Agent (www.helptobuyese.org.uk).

An example of how it works:

Property value £140,000.00
25% share purchase £35,000.00

Minimum deposit you would lend (5%)

(Based on a 95% 'Loan to Value' mortgage products)

£1,750.00

Monthly mortgage payments

(Based on a 6% interest rate over 25 years mortgage)

£228.00
Subscribed monthly rent payments £223.00
Total monthly cost £451.00

Please note:

These figures are for guidance only; interest rates and other charges are subject to change. Building insurance, management fees and service charges may also be payable. Costs may vary depending on individual circumstances

 

The percentage of share that you purchase is worked out by the Association, according to what you can afford. The bigger the share you buy, the less rent you pay. You will need to raise a mortgage for the share you buy unless you have sufficient savings of your own to buy the share outright.