Shared Ownership

We’ll walk you through the process of getting your shared ownership home:

• step one: find a property you like and register your interest
• step two: we’ll send you details along with information on how to get financially assessed
• step three: once your affordability is confirmed, we’ll arrange a viewing of the property for you
• step four: if you like the property, you can reserve it by paying a reservation fee of £500
• step five: you’ll need to complete the sales pack sent to you once you’ve made a reservation
• step six: by now you’ll have your mortgage and solicitors arranged. They do their bit to turn a property into your new home
• step seven: exchange contracts and arrange a completion date
• step eight: completion day. Time to pick up the keys to your new home!

Our Sales team will be there to support you every step of the way, answering any questions you have. We recommend seeking professional advice from our mortgage advisor panel list to help you find a mortgage. Additionally, consult with solicitors to help you with the legal side of things.

On completion day, we’ll be there to give you a grand tour of your new home and walk you through all the important details you’ll need to know as a new homeowner!

The eligibility criteria is as follows:

• you need to prove that you’re over 18 and a resident in the UK
• there is a maximum annual household income limit to be eligible. To qualify, your combined household income (that could be you and your partner or you and your friend if you buy together) must be less than £90,000
• you can’t afford to buy a home on the open market
• you don’t own a property, or part of a property, at the time of completing on your purchase
• you have a good credit history
• you have savings to cover the costs of buying a property such as solicitors’ fees, charges, and deposits
• for some homes, you may have to show that you live and work in the area, or have a connection to the area where you want to buy the home

There are many benefits for owning your home through shared ownership. Here are a few:

• shared ownership homes often costs less per month than buying the same home outright or renting privately
• you only need a 5% deposit on the share you buy, making it more affordable to get on the property ladder. For a 25% share, this is often less than £8,000
• buying a new home through shared ownership allows you to buy chain-free. This means you aren’t reliant on another property deal going through to complete your own purchase
• you’ll also benefit from a 10-year build warranty. For re-sale homes, the build warranty will differ depending on how long the current leaseholder has lived there
• new homes come with a high specification and better energy efficiency compared to older properties. This makes them ready to move into straight away
• you can buy additional shares in your home over time, this is called staircasing. You can staircase as and when you can afford to. You can eventually own 100% of your property if you wish to

Deposit

• Typically, you’ll need 5% deposit on the share you’re buying. Your deposit may vary based on your personal circumstances
• For example, if you’re buying a 25% share of a property with a full value of £420,000, the value of your share will be £105,000. If a 5% deposit was required, you would need to put down a deposit of just £5,250

Solicitor fees

You’ll need a solicitor or licensed conveyance professional for the legal work involved. Solicitors’ fees are usually on a fixed cost basis and the solicitors on our

Mortgage broker fees

Most mortgage brokers will charge a fee for their services. These can vary from a fixed amount to a percentage of the purchase price. A mortgage broker should explain clearly what fees are charged and when, before they begin any work on your behalf.

Other moving costs

Additional costs, such as removal fees can vary. Housing associations recommend that you have between £3,000 and £5,000 in hand to cover all the fees and costs of moving, which includes the solicitors and broker fees.

Monthly costs

Besides utility bills and council tax, you’ll have the following monthly costs:

• mortgage: your mortgage is the loan you use to buy a property. When you buy a home, you’ll put down a cash deposit and pay for the rest using a mortgage from a bank or building society. You pay the mortgage, plus interest, back in monthly instalments agreed with your bank or building society, over a set number of years
• rent: you’ll pay rent on the portion of the property that you don’t own. For example, if you buy 25% share of a £420,000 property, you’ll pay rent on the remaining 75%, which is £105,000. With a rent rate of 2.75%, your monthly rent would be calculated as £721.87 multiplied by 2.75% divided by 12

• service charge: service charges are payments made by homeowners to the housing association for the services they provide. The charges include maintenance and repairs to common areas, as well as building insurance. In some cases, they also cover the provision of lifts, lighting, communal aerials, door entry systems, cleaning of common areas and grounds maintenance. Service charges can vary from year to year; they can go up or down without any limit, relative to the services provided and the building. Details of what can and can’t be charged by the landlord and the proportion of the charge to be paid by the individual homeowner will all be set out in your lease

• Insurance: buildings insurance is covered as part of the service charge. We strongly recommend getting contents insurance too, which covers damages to your furniture, carpets, white goods and personal belongings. Contents insurance is the responsibility of the person living in the property – it is not compulsory, but it is advisable