We are redesigning our website to make it easier for you to access our services online.
This is happening in phases so you'll start to notice some parts of the website looking different.
Shared ownership allows first‑time buyers and people who don’t currently own a home to buy a share of a new‑build or existing property. The homes can be houses or flats and are always leasehold, because buyers purchase a share rather than the freehold, which remains with the council or registered provider.
You pay a mortgage on the share you own and a subsidised rent on the remaining share, plus any service charges. As your mortgage only covers part of the property, the deposit required is usually lower than buying outright, making this a more affordable option.
You can increase your share over time through “staircasing” and in most cases you can reach 100% ownership. Once you own the property outright, you will no longer pay rent — only your mortgage and any relevant service and ground charges.
Shared ownership is an alternative and more affordable home-buying product for people who would like to own their home but can’t afford to buy on the open market.
The costs of shared ownership is usually lower than other housing options for several reasons:
You can start with as little as a 10% share on the new shared ownership model or 25% if it is the old shared ownership model
Your deposit will usually be somewhere between 5% to 10% of the share you are buying, not the full market value of the whole property
The rent paid on the unowned share is charged at 2.75%, usually less than the open market rate
Stamp Duty Land Tax (SDLT) can generally be deferred until your share reaches 80%.
New shared ownership model
In 2021, the Government launched a new national model for shared ownership which is intended to be fairer, more affordable and more consumer-friendly.
The new model applies to all new grant-funded shared ownership homes delivered through the £11.5 billion Affordable Homes Programme (AHP) 2021-2026. The AHP is expected to deliver up to 90,000 new shared ownership homes across the country.
The minimum initial purchase share in a property is reduced from 25% to 10%.
New shared owners can buy additional shares in their homes in 1% increments for up to 15 years with reduced fees, though it will still be possible to staircase in larger increments with minimum additional share purchase reduced from 10% to 5%.
The cost of repairs and maintenance is met by the landlord for the first 10 years after purchase of a new property (with some limits).
The minimum shared ownership lease term is extended from 99 years to 990 years.
There will be a crossover with the number of new model and old model shared ownership properties being built in the district, either by developers or us. Solicitors should make buyers aware of the type of model they are purchasing, as well as the buyer's obligations and responsibilities contained within the lease agreement.
Buying or selling a property
We aim to make the process of buying and selling a shared ownership property as easy and efficient as possible.
When buying, we advise you to speak to a mortgage broker and a solicitor before you submit your application to us.
You will still need to prove that you are eligible and have a full affordability assessment carried out by a qualified mortgage advisor.
Evaluate what you can afford
You should obtain an Agreement in Principle (AIP). This essentially shows that a lender will lend funds to you to purchase a property. You can do this independently, or through a mortgage broker who should do this free of charge. AIPs do not affect credit scores.
You should also consider what the costs of purchasing a property are, and whether you have enough available funds to pay for them. These can include the deposit amount, mortgage broker and solicitor fees, and mortgage fees
Submit your registration of interest
You should complete and submit a registration of interest form via the Shared to Buy website. Most of our properties will be advertised via this website.
Once we have received your registration of interest, we will send you an application form for you to complete and return to us with the supporting documents.
We will assess your application to check you are eligible for the scheme against the criteria. If you meet the eligibility criteria, your application will proceed to the next stage.
If you do not meet the eligibility criteria your application will be rejected, with reasons provided.
Affordability assessment
We will send an Affordability Assessment and Declaration Form to you to send to your mortgage broker. Your mortgage broker must complete an affordability assessment to make sure you can afford to purchase the property and meet our minimum surplus income requirements.
If you can afford to purchase the property and meet our requirements your application will progress to the next stage.
If you are unable to afford the purchase and/or do not meet our requirements, your application will be rejected, with reasons provided.
View the property and pay the reservation fee
We will arrange a time for you to view the property. You must pay a non-refundable reservation fee if you wish to purchase the property. Once you have paid the fee, the property will be reserved.
We will issue a Memorandum of Sale to you, your mortgage broker and your solicitor.
Apply for your mortgage
Once you have the go ahead, your mortgage broker can submit your mortgage application.
One your solicitor has conducted their legal undertakings and agreed a sale with our legal team, the contracts can be exchanged.
Lease agreement signed and sale completes
A completion date is agreed between our legal team and your solicitor on your behalf. You must sign the lease agreement. This is a legally binding contract between you and us.
We will hand over the keys to you on completion day.
Shared owners can sell their home at any time. If you own 100% of the home, you can usually sell it on the open market, for example, through an estate agent. However, if you do not own 100% of your home, you must inform us of your intention to sell before proceeding with selling the property.
Check your lease agreement
Check your lease agreement to see whether there are any restrictions or requirements during the resales process.
You must have an independent RICS-qualified surveyor to value your property. The cost of the new share will be dependent on this valuation. You are responsible for arranging and paying for this. The valuation lasts for three months – if the sale does not complete within that time you may be required to have the property revalued.
You can find a local RICS-qualified surveyor by using the RICS website.
It is important that you check through your valuation report. If you have any questions or concerns about the valuation, you should speak to the surveyor directly to resolve them before proceeding with selling the property.
Submit your intention to sell form
Once you are happy with the valuation, you must complete an Intention to Sell form.
Once received, we will assess your application and the valuation. We will confirm to you in writing whether we have accepted your valuation.
Selling your home
We will market your property for a set period, depending on your lease agreement. This is known as the 'nominations period' where we can nominate an eligible buyer to purchase your property.
If unsuccessful, you will be allowed to sell your property on the open market but at the amount specified on your valuation.
Once a buyer is found
Once an eligible buyer is found their mortgage broker will apply for their mortgage. A copy of their mortgage offer must be sent to us.
Conveyancing
Once your buyer’s mortgage has been offered, their solicitor will complete their legal undertakings.
You and your solicitor should be prepared to answer any questions or queries. We will issue the Licence to Assign to you and your buyer’s solicitors who must complete the form as instructed.
Exchange of contracts and completion
Your sale will only proceed to exchange and completion once your solicitor and your buyer’s solicitor have completed all their searches and reported back to you.
When the contracts have exchanged, your buyer will pay their deposit and both solicitors will draw down funding from mortgage lenders.
On completion you must hand all sets of keys to us. We will hand these over to the new owner.
Considerations
When is the best time to start property searching?
Generally, having a buyer for your property puts you in a stronger negotiating position when placing offers on new properties, however you can start searching for your future home when you want to.
If my sale doesn’t complete within three months, will I need a new valuation?
If your sale doesn’t complete within the valuation’s three months validity, you may need to obtain a new valuation. Some valuers may be able to extend a valuation report, however there may be an additional fee charged. We suggest that prior to instructing a surveyor you clarify with them if they can extend a valuations expiry date and if there will be a cost and what that is.
