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  • Writer's pictureAga - Mortgage Broker

Shared Ownership Programmes: A Pathway to Homeownership

As property prices rise, shared ownership scheme offers a solution for those unable to buy a home outright. The programme enables buyers to purchase a portion of a property, typically between 10% and 75%, and pay rent on the remaining share. Over time, they can buy additional shares, eventually owning the home fully.


How It Works?

  • Aimed at first-time buyers or those with a household income below £80,000 (£90,000 in London).

  • Buyers secure a mortgage for their share and pay a smaller deposit calculated on the price of the share bought.

  • Reduced rent is paid on the unsold share, lowering monthly costs.

  •  Buyers can purchase more shares as their finances improve in future. This is called Staircasing.


Benefits

  • Lower Costs: Smaller deposit and mortgage reduce the initial financial burden.

  • Path to Full Ownership: Provides a structured way to own a home outright.

  • Security: More stability compared to private renting.

  • Flexibility: Buyers can increase their ownership stake over time.


Considerations

  • Charges: Buyers may need to pay 100% of service charges and ground rent.

  • Valuation Costs: Staircasing and resale involve valuation fees.

  • Restrictions: Criteria for buying more shares or selling can limit flexibility.


Shared ownership programmes can help turn the dream of homeownership into reality by making it more accessible and affordable.

If you would like to ask us about a Shared Onwership Mortgage - give us a call or email us.





GRN Financial Services Limited is an Appointed Representative of PRIMIS Mortgage Network, a trading name of Personal Touch Financial Services Ltd. Personal Touch Financial Services Ltd is authorised and regulated by the Financial Conduct Authority.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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