How to buy a shared ownership home
Shared ownership gives first time buyers and those that do not currently own a home the opportunity to purchase a share in a new build property. You pay a mortgage on the share you own, and a subsidised rent on the remaining share. Because you only need a mortgage for the share you buy, the amount of money required for a deposit is a lot lower when compared to the amount that would be required when purchasing outright.
You have the option to increase your share during your time in the property via a process known as ‘staircasing’, and in most cases you can staircase all the way to 100%, thereby owning the property outright. Shared ownership properties are always leasehold.
Take the journey with us and follow the steps below through our buying process...
Further criteria may apply depending on the development where you want to buy, for example: priority for those living or working in the borough of the development, priority for those earning the least or priority for serving Ministry of Defence staff.
To qualify, your household income must be £80,000 or less for homes outside of London boroughs and £90,000 for homes within London boroughs, and you can’t already own a home.
If there is any change to the information you provided when you registered, please tell us straightaway as this could affect which homes you’re eligible to buy.
If you meet the criteria on the left, register here and you’ll be the first to know when we have shared ownership homes come up which you’re eligible to buy.
We’ll ask that you to get an affordability assessment with an IMA (Independent Mortgage Advisor) before we offer you a viewing, just to make sure that the home purchase is affordable.
As shared ownership homes are usually in great demand, we will hold open house events where we invite all eligible and affordable buyers to look at our available homes.
If we have more buyers than homes, we will prioritise applicants according to guidelines agreed with the Local Authority.
Once you’ve registered with us, when there’s a launch or viewing day at a development where you’re eligible to buy we will invite you by email to look at one of our homes. If you want to check on when this might be have a look at our developments or call us on 020 3675 9933, or email us.
A reservation fee of £500 is payable at this stage in order to secure your home, which goes towards the purchase price of the property. We will also suggest carefully-vetted IMAs and solicitors who are familiar with the shared ownership lease.
- We’ll ask you to submit a range of documents to support your shared ownership home application. This will be detailed in our offer letter to you but if you need assistance please ask our sales advisor.
Our sales advisor will ask you to complete an application form to check that you’re eligible to buy. If we are able to offer you a home, the sales advisor will take you through the reservation process and will answer any questions you may have.
- Ensure you have registered on the Electoral Roll before applying for a mortgage.
- You’ll be asked to provide a range of documentation to support your mortgage application.
- If you’re self-employed, you’ll need to submit 2 years of audited accounts.
- Based on government guidelines you’ll need to buy the maximum share you can afford purchase based on your household income and outgoings.
We have a panel of partner IMAs that are experienced in arranging shared ownership mortgages. Usually your mortgage application meeting will take place between 9am and 5pm Monday to Friday so be sure to allow time to attend this.
When you exchange contracts you’ll need to pay a deposit to your solicitor, who will transfer it to us. Normally this is 5% of the share value.
Once your lender has provided a mortgage offer and your solicitor has received replies to their questions on the lease, you will exchange contracts, which means you’re legally committed to buying your home and we’re committed to selling it to you. Usually this occurs whilst the home is being built and should happen 28 days after you have instructed your solicitor to go ahead.
- We will demonstrate how your home works prior to your move in day.
- You’ll need to contact utilities providers such as electricity, gas (if applicable), water, council tax and telephone/broadband to let them know you have moved in and to set up an account.
- You may need to pay stamp duty on your purchase, for more information please ask your solicitor.
- Any issues in your new home that relate to faulty workmanship or materials will be rectified for 2 years after you moved in
Once your home has been built and all building documentation received, your solicitor will confirm a date that your purchase will go through and you can move in to your new home. This is also when your solicitor will contact your mortgage provider to release monies for your home and provide you with a statement of fees associated with the purchase.
How do I get started?
- Register with us, if you haven’t already
- Complete this form and get your affordability confirmed by our partner IMA
- Call us on 020 3369 0115 or e-mail us on [email protected] to reserve your slot at our launch event
- If you want to reserve a home on the day, you’ll need to bring along the below information
Things you'll need
- Photo ID (for example passport or driving licence)
- Proof of address (for example council tax bill or recent utility bill)
- Last three months’ payslips or if you are self-employed, your audited accounts for the last two years from a certified or chartered accountant or the last 2 years tax assessments from the inland revenue
- Last three months’ bank statements
- Proof of savings and covering letter, if it’s a gift
- Proof of occupation
- Proof of registration on the electoral roll
- Debit or credit card to pay the £500 reservation fee
We will then issue you with written confirmation of your new home purchase and the next steps.