Question 1

How do I sell my shared ownership home?

Accepted Answer

Selling a shared ownership home means selling the share you own, and the process is a little different from a normal sale, so it helps to know the steps before you start.

First, tell your housing association you want to sell. Under most leases they have a set period, often up to eight weeks (check your own lease), to find a buyer through their waiting list before you can market the home yourself. You will also need a RICS valuation to set the price, and an Energy Performance Certificate.

If you have staircased to own 100% of a house, you can usually sell on the open market like any other home. Costs to budget for include the valuation, the EPC, a solicitor, and an estate agent fee if the housing association does not find a buyer. Some homes, such as those in designated rural areas, have restrictions on staircasing and resale, so your lease is always the place to check.

Thinking of selling and buying again, or staircasing first? We can talk through the mortgage side, whether that is porting your mortgage, a new purchase or a remortgage. Your home may be repossessed if you do not keep up repayments on your mortgage.

Question 2

Is it hard to get a mortgage for shared ownership?

Accepted Answer

Getting a mortgage for shared ownership is not necessarily harder, but it is more specialist than a standard residential mortgage. Not every lender offers shared ownership products, so the choice of lenders is usually smaller.
Lenders will still assess affordability in the normal way by looking at your income, outgoings, credit history and deposit. The key difference is that they also include the rent payable on the share you do not own, along with any service charges and other housing costs.
For many first-time buyers, shared ownership can actually make getting onto the property ladder more realistic because the deposit and mortgage are based only on the share being purchased rather than the full property value.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 3

What salary do I need for shared ownership?

Accepted Answer

There is no fixed salary requirement for shared ownership, as affordability depends on the property price, the share being purchased, your deposit and your existing financial commitments.
Lenders will assess income alongside rent, service charges and regular outgoings. For some buyers, a salary of &#163;25,000 to &#163;30,000 may be enough, while others may require a higher income depending on the property and area.
The most accurate way to understand your borrowing position is through a personalised affordability assessment rather than relying purely on salary multiples.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 4

How much deposit do you need for a shared ownership mortgage?

Accepted Answer

The deposit is usually between 5% and 10% of the share you are purchasing, not the full property value.
For example, if the full property is worth &#163;240,000 and you are buying a 25% share worth &#163;60,000, a 5% deposit would be &#163;3,000.
This is one of the reasons shared ownership can be a more accessible option for first-time buyers.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 5

How much can I borrow from a mortgage shared ownership?

Accepted Answer

Borrowing is based on affordability, just like a standard mortgage. Many lenders use income multiples as a starting point, often around four to four-and-a-half times salary, but this is then adjusted for rent, service charges and monthly commitments.
The final borrowing figure depends on income, deposit, credit history and the overall cost of the shared ownership property.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 6

Which banks lend on shared ownership?

Accepted Answer

A number of mainstream and specialist lenders offer shared ownership mortgages, although this can change over time. Common lenders in this area can include Halifax, Nationwide, Leeds Building Society, Santander and Barclays, among others.
The best lender depends on your circumstances, including income, deposit size, property type and credit profile. Some lenders are stronger for flats, new builds or first-time buyers than others.
Because criteria can vary significantly, comparing lenders through a whole-of-market mortgage broker often provides access to more suitable options than approaching one lender directly.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 7

Can you do 100% mortgage on shared ownership?

Accepted Answer

In some cases, it may be possible to obtain a 100% mortgage on the share you are purchasing, but this is less common and options can be limited.
Most shared ownership mortgages still require a deposit, often around 5% to 10% of the share price. The positive is that the deposit is based only on the share you are buying rather than the full property value, which can make it far more achievable.
Lender criteria and product availability change regularly, so it is important to review current options carefully.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 8

What is the 45% rule for shared ownership?

Accepted Answer

The 45% rule is a common affordability guideline used in shared ownership. It means that your total monthly housing costs should generally not exceed around 45% of your net monthly income.
This includes your mortgage payment, rent on the unsold share, service charges and any ground rent where applicable. For example, if your monthly take-home pay is &#163;2,500, total housing costs would usually need to stay below approximately &#163;1,125.
This rule helps ensure the property remains affordable and sustainable over the longer term.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 9

What is the downside to shared ownership?

Accepted Answer

The main downside of shared ownership is that you are responsible for both mortgage repayments and rent on the share you do not own.
You may also need to pay service charges, and these can sometimes increase over time. In addition, selling the property can be more complex due to housing association rules and leasehold requirements.
However, for many buyers it remains a practical route onto the property ladder when buying outright is not currently affordable.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 10

Can I be kicked out of a shared ownership house?

Accepted Answer

Shared ownership gives you legal rights as the leaseholder, so you cannot simply be removed from the property without cause.
However, serious mortgage arrears, rent arrears or breaches of lease terms could lead to legal action or repossession, in the same way as other mortgaged properties.
It is worth knowing all the facts and potential downsides to shared ownership, as well as what salary you need to get a shared ownership mortgage.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 11

Do you pay full council tax on shared ownership?

Accepted Answer

Yes, you are responsible for paying the full council tax bill, even if you only own a percentage share of the property.
Council tax is based on occupancy and property banding rather than ownership share.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 12

What happens when you own 100% of shared ownership?

Accepted Answer

Once you staircase to 100%, you own the full property interest under the lease and no longer pay rent to the housing association.
However, if the property is leasehold, such as a flat, service charges and leasehold obligations may still remain in place.
This is often referred to as full staircasing and can be a long-term goal for many shared ownership buyers.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Question 13

Is shared ownership for poor people?

Accepted Answer

No, shared ownership is not designed for any one type of person. It is intended for buyers who can afford monthly payments but may not yet be able to buy a home outright in their chosen area.
This includes first-time buyers, professionals, families and key workers. It is simply another route onto the property ladder and can be a sensible stepping stone towards full ownership.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.You may have to pay an early repayment charge to your existing lender if you remortgage.

Shared Ownership mortgage questions

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