Purchasing a property by “Shared Ownership” is an alternative way for people to get their foot on the property ladder. It involves buying a share in a property at an agreed price and then renting the remaining share from the Housing Association involved. For example, for a property worth £120,000, you could buy a 50% share for £60,000 and take a lease over the remaining 50%; on which you would then pay a rent which would be a fair proportion of the rental value of the whole property. This is a great way for people to buy the type of property they like at an affordable price.
Another benefit of Shared Ownership is that once you have moved into your property, you can then buy additional shares (known as Staircasing) at a time which suits you; whether you can afford to do this by saving up some additional funds, receiving a gift from a family member or through a promotion so that you can afford to lend/save that bit more.
The minimum amount you can purchase at one time tends to be 10% upwards and you cannot normally purchase an additional share within the first twelve months after your initial purchase, however this is a great way to gradually work up to fully owning your own home. Your rent will decrease in line with the additional shares you own and in time, you could buy the whole property from the Housing Association. At this point, you would also be entitled to the Freehold interest in the property (unless the property is a flat).
If you would like further information about Shared Ownership property, please call a member of our Conveyancing Team on 0114 358 9009 who will be happy to discuss this with you. Prices for purchases of Shared Ownership properties start from £500.00 + VAT.