Shared ownership is where the council or another social landlord such as a housing association sells a share of a home to a purchaser and then charges rent on the remaining share. This is also known as part buy/part rent. This allows people who cannot afford to buy on the open market the opportunity to get into home ownership. The idea is that shared ownership is a stepping stone to you being able to own your own home outright when you can afford to.
Eligible applicants will be able to purchase an initial share of the property ranging from 25% up to 75% depending on what you can afford. You can then purchase additional shares up to a total of 100% if you wish and can afford to.
In order to qualify for shared ownership, you generally need to:
- Have a household income of less than £60,000 per year.
- Be a first-time buyer (or you used to own a home, but can’t afford to buy one now).
- Be unable to purchase a home suitable for your needs without assistance.
- Be registered on the council's housing register, HomeChoice.
The landlord will provide you with a lease agreement which will set out the rights and responsibilities, but in effect you will have the same rights and responsibilities as an owner-occupier.
How are the properties allocated?
Allocations to these homes will in accordance with the council’s HomeChoice Allocation Scheme. This policy sets out how we will prioritise those in greatest need.
Shared ownership properties
Can I buy extra shares after my initial purchase?
Yes, this is known as staircasing whereby you purchase additional shares with the option to go all the way to 100%. The price you pay for any extra share is based on the market value of your home at the time you want to buy. This value can go up or down according to house prices generally. The value will be set by an independent valuer. There will be some costs involved in staircasing such as a valuation fee and solicitor’s fees, although it shouldn’t cost as much as buying your first share.
Selling your home
You can sell your home at any time. The terms of your lease may vary but normally the council or your landlord has eight weeks to find a buyer for your home. This helps you as it saves you the expense of going to an estate agent and doing all the hard work yourself. After the eight weeks, if we are unable to find a buyer, you can sell your home through an estate agent in the normal way.