Shared ownership is a government-backed scheme designed to help people get onto the property ladder when buying a home outright isn’t financially possible. It offers a middle ground between renting and full homeownership, but it’s important to understand how the process works before diving in.
Here’s a clear step-by-step guide to the shared ownership process in the UK.
What is Shared Ownership?
Shared ownership allows you to buy a share of a property (usually between 10% and 75%) and pay rent on the remaining share, which is owned by a housing association. Over time, you can increase your ownership share through a process known as “staircasing”, potentially working your way up to full ownership.
This scheme is available for:
First-time buyers
People who used to own a home but can’t afford to buy now
Existing shared owners wanting to move
You’ll usually need a household income of less than £80,000 a year (£90,000 in London) to qualify.
Step-by-Step: The Shared Ownership Process
1. Check Your Eligibility
Before starting your property search, ensure you meet the criteria:
Your income is within the threshold
You’re at least 18 years old
You have a good credit history and can get a mortgage (or pay cash for your share)
You can afford the deposit and monthly costs
You’ll need to register with a Help to Buy agent in your region or visit the housing association's website offering the property.
2. Find a Shared Ownership Property
Shared ownership homes are typically new-builds or resales of existing shared ownership homes. You can find them via:
Local housing associations
Property portals like Share to Buy or Rightmove
Developer websites
When you find a home you like, express your interest and complete an application with the housing provider.
3. Affordability Assessment
The housing association will carry out a financial assessment (often through an independent financial advisor) to determine what share you can afford. They’ll look at:
Your income and expenses
Your deposit and mortgage potential
Ongoing costs (rent, service charge, maintenance)
4. Apply for a Mortgage
Once your share amount is confirmed, you’ll need to apply for a mortgage for that portion of the property. Some lenders offer specialist shared ownership mortgages.
You’ll also need to instruct a solicitor experienced in shared ownership to handle the legal side.
5. Exchange Contracts and Complete
Once your mortgage offer and legal checks are complete:
You exchange contracts with the housing association
Pay your deposit (usually 5–10% of your share’s value)
Set a completion date
On completion, you get the keys to your new home and officially become a shared owner.
6. Monthly Payments and Responsibilities
Each month you’ll pay:
Your mortgage (on your share)
Rent to the housing association (on their share)
Service charge and ground rent (if applicable)
You’re responsible for repairs and maintenance, even though you don’t fully own the property yet.
7. Staircasing: Buying More Shares
You can increase your ownership over time by purchasing additional shares—this is called staircasing. With each staircasing step:
Your rent decreases
You may pay additional fees (valuation, legal, mortgage arrangement)
You might reach 100% ownership (depending on lease terms)
Bear in mind that the cost of additional shares is based on the property’s current market value, not the price you originally paid.
Pros and Cons of Shared Ownership
✅ Pros:
Lower deposit required
More affordable route to homeownership
Opportunity to increase your share over time
⚠️ Cons:
You still pay rent
Limited control over resale (housing association usually has first refusal)
Full ownership may not be possible in all cases. You’re still responsible for all maintenance costs
For more insights and options, contact Victoria Bennett at victoria@hdconsultants.net
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