What is Shared Ownership?

In simple terms, shared ownership is a mixture of buying and renting a property and is something primarily aimed at first time buyers. As such, it can be a way for you to invest in a first home that you may have previously thought was out of reach.

Shared ownership: how does it work?

With shared ownership in England, you will purchase between a quarter and three-quarters of a property’s market value. You then pay rent on the remainder of the amount you owe at a rate set by the provider involved in the scheme.

It is important to note that when you use this scheme the property will be leasehold.

The Shared Ownership scheme is a part buy, part rent way of owning your own home for a smaller upfront payment. Purchase between 25-75% of the home's market value and pay subsidised rent on the remainder calculated at 2.75% per annum. You will also need a deposit of at least 5% of the share purchased.

*Shared Ownership – Terms and conditions apply. Our schemes are subject to qualifying criteria and status. Minimum and maximum share values will differ depending on the provider and rent is payable on the unsold share. Only available on selected properties.

Shared ownership mortgages

If you don’t have the cash available, you’ll also need to apply for a shared ownership mortgage to cover the amount you intend to borrow.

Not all lenders offer these mortgages though so you may need to shop around. Also the deposit rates required can vary – however as a rule of thumb you’ll typically need a 5% deposit for these mortgages.

You can use our Mortgage Calculator to calculate how much you can afford and to see how much the monthly payments would be for your dream home.

Who is eligible for shared ownership?

The eligibility criteria for shared ownership can vary depending on the provider and property, but here are some of the more common examples:

  • Your combined yearly income must be below £80,000 to be eligible for the Shared Ownership scheme.
  • You do not currently own a home.
  • You must be at least 18 years of age.
  • You must have proof you’re not in mortgage or rental arrears.
  • You have a good credit history.
  • You’re not able to purchase a home suitable for your needs on the open market.

Other considerations for first time buyers

Alongside the typical mortgage fees and charges you get with home buying, there are also things like Stamp Duty, solicitor’s fees and your moving costs that you should factor in as well.

Shared ownership with Tilia Homes

If you’re interested in purchasing one of our quality new build properties at one of our developments, then you’ll be pleased to know we also have our own shared ownership schemes for you to consider.

We have partnerships with two providers, Sage Housing and Heylo with whom we have shared ownership schemes available. With the latter, the part-buy-part-rent option is called Home Reach and you can click on the two providers below to find out more

Heylo
Sage Housing

If you have any more general questions about the shared ownership of property, you’d like to know more about our offers or you simply want to make an enquiry then don’t hesitate to get in touch. Our teams will assist you with your queries and you can find our contact details here.

Check out the next guide in our series looking at Mortgages for First Time Buyers.