Shared ownership

Shared ownership is a government backed scheme that is designed as a stepping stone to completely owning your own home; it allows you to buy what you want when you can afford it.

Buying a Home Group shared ownership property makes you an owner-occupier, not a part tenant.

 

 

Even though you pay a low-cost rent on the part of the property you have not yet bought this rent is used by Home Group to meet loan costs for the original build.

 

 

You start off buying a share (usually between 25 – 75%) in your new home on a 125-year lease.

 

 

Your lease is a legal document that proves you own part of your home and it also sets out certain conditions such as:

 

  • How much rent and service charge you pay
  • When your rent & service charge goes up and by how much it will increase
  • What you should expect from us
  • Your rights and responsibilities as owner-occupier
Since you’ll sign a lease you will be a ‘leaseholder’ and Home Group will be what is known as the ‘freeholder’.

 

 

Whilst there is a full list of criteria for shared ownership, there are two key elements that all applicants need to fulfil:

 

1. You are not currently a homeowner - or you will have sold your current home before you purchase.

 

2. You have a household income of: 
  • Less than £80,000 if buying a home outside of London
  • Less than £90,000 if buying a home inside London
Furthermore, as you’re applying for a mortgage on a percentage of the property, you must also:

 

  • Have a sufficient deposit (a minimum of 5%) for the percentage of the home for which you're applying for a mortgage for;
  • Be able to prove you can afford the monthly mortgage repayments.

Buying more shares

 

 

You can buy more shares in the value of your home when you are able to afford to do so.

 

 

If you decide to buy the remaining share of your home, you will own your home outright.

 

 

If your property is a house, you may be able to arrange for the transfer of the freehold like any other house owner however this will be confirmed at the time.

 

 

If you own a flat, you’ll remain a leaseholder like any other flat owner. This is because your home is in a block of flats and your lease sets out responsibilities for use and maintenance to all areas used in common with other owners.

To check your eligibility for shared ownership, contact us today and one of our friendly and knowledgeable advisors will be in touch.