Intro
Shared ownership is an easy way to become a homeowner without the high costs of a traditional property purchase. It gives you the flexibility to buy a portion of a property and pay rent on the remaining share, making homeownership more affordable. It’s particularly popular with first-time buyers, as it lowers the upfront costs while still offering the opportunity to eventually own your home outright.
What is shared ownership?
Shared ownership is a government-backed scheme that helps people get onto the property ladder when they might not be able to afford to buy a home outright. With shared ownership, you purchase a percentage (usually between 25% and 75%) of a property and pay rent on the remaining share, which is owned by a housing association or private landlord.
Over time, you have the option to increase your share in the property through a process called staircasing, which allows you to eventually own the home outright. It’s a more affordable way to own a home, especially for first-time buyers or those struggling to save for a large deposit.
The process usually starts by applying for a shared ownership property through a housing association or developer. Once you’ve secured your property, you’ll undergo the typical conveyancing process but with some added legal steps to account for the shared ownership agreement.
What is the process of shared ownership?
Buying a shared ownership property follows a slightly different path than a standard purchase. But with the right guidance, it’s a straightforward journey.
- Eligibility Check – To be eligible for a shared ownership property, you need to be a first-time buyer or someone who previously owned a home but can no longer afford to buy on the open market. You can check your eligibility on the government website here.
- Choose a Property – If you’re eligible, you’ll find properties available through the shared ownership scheme. These can be new builds or resale homes. Work with a housing association or developer to secure a property that fits your needs and budget.
- Secure Financing – You’ll need to arrange a mortgage to buy your share of the property. A mortgage advisor will help you understand your options. You’ll pay rent on the remaining share, which is owned by the housing association or landlord.
- Instruct a conveyancer – Here’s where we come in. Once you’ve chosen your property and secured financing, it’s important to work with a conveyancer who specialises in shared ownership conveyancing.
- Make an offer – Next, you’ll formally make an offer on the property. If the housing association or developer agrees, the property will be reserved for you.
- Conveyancing – After your offer is accepted, we’ll carry out legal checks, review the contract, conduct searches, and liaise with the housing association and your mortgage lender to ensure everything is in order.
- Exchange Contracts – Once the legal side is sorted, you’ll exchange contracts and pay a deposit, making the agreement legally binding.
- Completion and Move-In – On the completion date, you’ll officially become a homeowner, having bought your share of the property. You’ll start paying rent on the remaining share while you enjoy your new home. Over time, you may decide to staircase and buy more shares — reducing your rent and increasing your ownership.
How much does shared ownership cost?
Shared ownership is a great way to start your homeownership journey with lower initial costs and the flexibility to increase your stake in the property over time. The overall cost of shared ownership can vary depending on the property, location, and financial situation.
- Mortgage: For the share you’re purchasing (typically 25-75% of the property’s value).
- Rent: Paid on the remaining share, usually around 2.75% of its value annually, lower than standard market rent.
- Deposit: Typically 5-10% of the share you’re buying.
- Legal Fees: Speak to our team for a personalised quote.
- Stamp Duty: Payable on the share you buy, though first-time buyers may benefit from exemptions or reduced rates.
- Service Charges: Monthly charges for communal areas or maintenance, ranging from £100 to £300+.
- Ongoing Costs: Utilities, council tax, and insurance. If you later decide to staircase and buy more shares, there will be additional costs, including valuations and legal fees.
Why choose Cavendish?
With 40 years of experience, we know shared ownership inside out. We work closely with a lot of developers and housing associations, which means we can keep things moving smoothly and hit the required deadlines.
Specialising in shared ownership properties, we’re experts at navigating all the details so you don’t have to worry. Plus, with a 4.8-star Trustpilot score, our clients love our friendly, professional service.
Let us take care of your shared ownership purchase – stress-free and simple!
Our Team
Meena Daddar
Head of Shared Ownership & New Build
Meena Daddar heads up our shared ownership team and is a specialist in Property Law with over 15 years of experience. She began her career with a London City firm in 2006 and has since developed extensive expertise in handling complex property transactions.
Leading a dedicated team of shared ownership specialists, Meena ensures clients receive expert guidance throughout the process. Her team is committed to providing clear, practical advice and a seamless experience, no matter the complexity of the transaction.
Get a quote
Ready to get started? Get your free, no-obligation quote today, or reach out to our expert team for help and advice on your shared ownership purchase. Let’s get you moved.