Shared ownership is a scheme that helps you buy your own home if you can't quite afford the mortgage on 100% of a property. It enables people and families to take the first step towards buying a home that meets their needs that they could not otherwise afford.
The Government will be funding a new model of Shared Ownership through the Affordable Homes Programme 2021-26. Up to 50% of homes delivered through this programme will be for the new model of Shared Ownership. The new model should be available to purchase from 2022 (a limited number of homes will be available before that).
This means there will be an overlap with the present Shared Ownership model which will continue to be funded until 2023 through the Affordable Homes Programme 2016-23. When you enquire about a property, you should check what model you are purchasing through.
How it works
All shared ownership homes (houses and flats) are sold as leasehold. This is because the landlord has an interest in the remaing share.
The initial share purchase for shared ownership homes is between 25% and 75%. However, under the new model for shared ownership, shares will be available from 10%. There are a limited number of new model shared ownership homes in 2021, however it is expected that more will be built and become available in 2022.
As part of the scheme you will also agree to pay rent on the remaining unsold share which is usually around 3%. You may also be charged a monthly or annual service charge.
When you have found the home you want to buy, you should speak to a mortgage or independant financial advisor. They will conduct a financial affordability assessment to make sure you can afford the repayments of the mortgage, rent and service charge. They will also tell you the maximum share of the poperty you can afford at the time of your application.
It is possible to buy more shares in your home up to 100% ownership. This process is commonly refered to as 'staircasing'. When you buy more shares in your home you will pay less rent as the landlord's share in the property will have decreased.
If you reach 100% ownership the freehold will transfer to you, and the shared ownership lease will no longer apply. For most flats, the leasehold will remain but the obligations under the shared ownership scheme will fall away. In such cirstmstances, this will be explained to you during the sales process
Who can apply?
You can buy a shared ownership home if the following apply:
- you are 18 years or older
- your household income is £80,000 a year or less
- you are a first-time buyer, or you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move
- you are not able to afford the deposit and mortgage payments for a home that meets your needs
Members of the Armed Forces
Only serving and former military personnel will be exempt from any local connections criteria.
More infrmation on the shared ownership scheme can be found by visiting the Own your Home website.
Shared ownership in the district
A number of Registered Providers operate in the district and may have Shared Ownership properties for sale. Click the links below to find out more about the properties and how you can apply, on their webistes.
Keep up to date with all things shared ownership
Sign-up to our Keep Me Posted email bulletin service to keep up to date about all things shared ownership by selecting 'Affordable Housing' as an interested topic.
Dover District Council is a Data Controller under (UK) GDPR. We process your personal data in compliance with data protection legislation. The personal data you provide will be used to process and assess your application, your data will be kept for the minimal period necessary to meet our purpose. For further information on your Rights and how the Council processes your personal data, please view our Shared Ownership and Corporate Privacy Notice.