Shared Ownership

Shared Ownership has been in the headlines a great deal recently.  It is a scheme by which you can purchase a percentage of a flat or house from a Housing Association.

Housing associations in the United Kingdom are independent not-for-profit bodies that provide low-cost housing for people in housing need. Any profit they make is used to maintain existing homes and to help finance the provision of new ones. They are now the United Kingdom's main providers of new homes for rent; while many also run shared ownership schemes to help people who cannot afford to buy their own homes outright.

When you purchase a house or flat using a Shared Ownership Scheme, the part of your home that is not purchased is rented. Thus if you purchase 35%, rent is paid on the other 65%. It is usually possible to buy further percentages in your property with a minimum of a 10% share. The part rented then decreases. This is called staircasing. Some schemes allow staircasing to 100% but some limit this to less than 100%. Even after staircasing there is usually a provision that the property must be offered back to the Housing Association but this is at market value so you shouldn’t lose out.  There are some mortgage lenders who will lend money on shared ownership schemes but this is a specialised area so expert advice is needed. FJG can put you in touch with someone who can help.

It is a more complicated way of purchasing a house but it works particularly if you cannot afford to buy a house or flat outright.  Fisher Jones Greenwood can help you through the process so if you are considering Share Ownership call us on 01206 835220.  We can also recommend an experienced Shared Ownership financial adviser for your mortgage.