Shared ownership is a government scheme giving homebuyers, the opportunity to purchase a share of a property. The scheme is designed to help people who are unable to afford to buy a property in full gain a foothold on the property ladder.

Shared ownership homes are offered by housing associations, local councils and other organisations known as providers or landlords. 

Shared ownership allows buyers to purchase a percentage of a property and rent the remaining share. When you buy a home through shared ownership, you can buy a share of the property between 25% and 75% and will pay rent on the remaining share. In some cases, you may also need to pay ground rent and service charges, which goes towards the maintenance cost of communal areas. These charges are common for properties on newer estates.

You can buy through shared ownership on a new-build home, or an existing home through a shared ownership resale scheme, allowing you to find a home to meet your specific needs.

The share of the property you can usually buy is between 25% and 75%, however you can buy more shares in your home in the future which increases the amount of the property you own. This is known as ‘staircasing’. As you increase the share you own, the amount of rent you pay will decrease. There can be costs involved when you are looking to staircase, from mortgage, to conveyancing, or administrative fees, so it is important to check this when looking to increase your share of the property. Many will allow you to staircase up to 100% property ownership, meaning you will own the property outright with no rent left to pay.  

There is no obligation to staircase when you buy a shared ownership property. If you look to sell the property without staircasing, you will sell the portion of the property you own. 

Many mortgage lenders will have different criteria for shared ownership applicants. At the Tipton, we will consider the below criteria:

• All applicants must be aged 18 years or over;
• We will consider lending up to 95% of the share you are buying;
• We will only consider applications where the Housing Association will allow you to buy more share in the property, up to 100% of the property value;
• We will only consider applications in England; and 
• The lease on the property must have a minimum of 85 years remaining at the point of application.

To check if you are eligible for our shared ownership products, simply talk to us! You can do this via our online contact form, calling us on 0121 557 2551, or our live chat facility on our website.

If you are looking at shared ownership mortgages, you can consider some of the potential advantages below:

• Shared ownership is designed for those who need a helping hand getting onto the property ladder; 
• You can increase your share of the property by staircasing, meaning you can gradually increase the amount you own and your rent payments overtime will decrease; and 
• As you'll be buying a share of the property, the deposit required will be smaller. 

If you are looking at a shared ownership mortgage, it is important to consider some points which may be a disadvantage:

• When you increase your share (staircase), this can involve more costs such as mortgage, legal, or administrative fees;
• In some cases, you may be limited on the changes you can make to the property. Some housing associations have rules relating to the property which will be enforced until you own the property outright; and
• Shared ownership properties are leasehold, meaning you will likely pay ground rent and service charges on top of your mortgage and rent.

Do you need a deposit for a Shared Ownership mortgage?

By taking out a Shared Ownership mortgage, you are purchasing a share of the property, therefore you will put down a deposit based on the amount you are looking to buy. This is usually between 5-10% of the share you are buying. At the Tipton, we require applicants to have a deposit of 5% of the share they are purchasing.

Who is responsible for repairs in a Shared Ownership property?

You will need to pay for repairs and the maintenance of the property. Some costs may be covered by the building warranty, if it is relating to the building structure, or any new build guarantee scheme.

Can I sell my share? 

You can sell your share in a Shared Ownership home at any time. If you own 100% of your home, it can usually be sold on the open market through an estate agent. If you own a share of the home, you must tell the housing association or landlord when you want to sell your home, and give them the opportunity to find a buyer for your share.

Can you decorate a Shared Ownership home?

You can paint, decorate and refurbish a Shared Ownership home. However, for any structural changes, you may need written permission from your landlord or housing association.

Can you have pets in a Shared Ownership home?

It’s important to get written permission from your landlord or housing association to check if pets are allowed in your Shared Ownership home. 

Whether you are a first-time buyer looking for a shared ownership purchase product, or if you are looking for a shared ownership remortgage option, you can view our options available.

At the Tipton, we will consider lending up to 95% of the share you are buying. We will only consider applications you can buy more shares in the property to allow 100% of the property value, known as ‘staircasing’. We will only consider applications in England and require the lease to have a minimum of 85 years remaining at the point of application.

To get in touch with one of our Mortgage Advisers, you can do this via our online contact form,  calling us on 0121 557 2551, or our live chat facility on our website.