How shared ownership works is simple in principle: you buy a share of a home and pay rent on the rest. It is a government-backed scheme that helps people buy when a full mortgage is out of reach. This guide explains how it works, what it costs and what to watch for, and our advisers are here if you want to talk it through.
What is shared ownership?
Shared ownership lets you buy a share of a property, usually between 10% and 75%, and pay a reduced rent to a housing association on the share you do not own. Because you only need a mortgage and deposit for your share, the upfront cost is far lower than buying outright. Over time you can buy more shares, a process called staircasing, often up to full ownership.
How does shared ownership work?
You take a mortgage on the share you buy, put down a deposit on that share, and pay rent on the remaining share to the landlord. You live in the home as if you owned all of it, and you are responsible for it as a leaseholder.
Buying your share
On the current scheme you can usually start from a 10% share and buy up to 75% at the outset. Your deposit is a percentage of your share, not the full property price, which is why so many buyers can get started with a small deposit.
Paying rent on the rest
You pay rent to the housing association on the share you do not own. It is charged at a set percentage of that share’s value each year and rises over time. We break the full monthly picture down in our guide to shared ownership costs, and you can estimate it with the shared ownership calculator.
It is usually leasehold
Almost all shared ownership homes are leasehold, so you own the property for the length of a long lease and pay a service charge for the upkeep of the building and shared areas. Newer schemes come with much longer leases and a period where the landlord helps with essential repairs.
Who shared ownership is for
It is aimed at people who cannot afford to buy a home outright, including first-time buyers and those who no longer own a home. There are income limits and a few other rules. See who qualifies in our guide to shared ownership eligibility.
What it costs each month
Your monthly cost is the mortgage on your share, plus rent on the share you do not own, plus a service charge. Together these need to be affordable on your income. Our costs guide explains each part, and the calculator gives you a quick estimate.
Buying more of your home later
You can buy further shares over time until, in most cases, you own your home outright. This is called staircasing, and each step means a larger mortgage and less rent.
Is shared ownership a good idea?
For many people it is the most realistic route onto the ladder, but it is not right for everyone. We set out the honest trade-offs in is shared ownership worth it.
Shared ownership in Lincolnshire
We are Sleaford-based and help buyers use shared ownership right across Lincolnshire, from Lincoln and Grantham to Boston and Bourne. You can browse current shared ownership homes near you, and as former bank managers we know which lenders support the scheme locally.
Talk to a shared ownership mortgage adviser
If shared ownership looks like a fit, we can check your budget and match you to a lender that offers it. See our shared ownership mortgage advice or book a free chat. The scheme rules can vary by housing association and change over time, so we will confirm exactly what applies to your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
