What is Shared Ownership?

Shared Ownership properties are where a buyer acquires only part of the property they are intending to purchase. It allows for example first time buyers and those that do not currently own a property a more affordable option when buying. It can apply to both existing property and new build. The purchase will only buy a certain percentage of the property with normally a housing association owning the remaining percentage. The buyer pays rent to the housing association on the percentage they don’t own. It means a mortgage is required on the share being acquired and also a lower deposit. The remaining percentage not owned can always be brought in the future. This process is known as staircasing. There are many reasons to buy a shared ownership property which are summarised as follows –

  • Allows people who can’t’ afford to own their own home, an option to buy
  • Stamp duty can be deferred until more than 30% of the property is owned
  • You can purchase sometimes as little as 25% of the property
  • Lower borrowing required
  • Lower deposits

If you have any questions regarding shared ownership property or the process of buying, please contact sharedownership@pcslegal.co.uk or any of our offices by phone.