A Guide to Shared Ownership
What is Shared Ownership?
Shared Ownership makes it possible to buy a property which otherwise would not have been affordable. It is a part buy/part rent scheme, where you buy a share in the property and pay rent on the share you don’t own. It is designed as a stepping stone for first time buyers to completely owning your own home, allowing you to buy further shares in your property (which is called Staircasing) when you can afford to. Download our complete Guide to Shared Ownership using the button below.
Shared Ownership helps many first time buyers get a foot on the housing ladder. Buying a home in the current market is very difficult for many people but Shared Ownership makes it possible to buy a property which otherwise would not have been affordable. You can usually buy an initial share from 30% to 75% of the value of a property and you'll need to take out a mortgage to pay for your share of the home's purchase price. You will then pay a subsidised rent on the share you don’t buy and there will also be a monthly service charge payable.
Watch our video - An introduction to Shared Ownership
If you buy through Shared Ownership:
- You will own part of the value of your home, rather than paying rent with no return.
- Your monthly mortgage and rent can work out cheaper than buying outright, and often not much more than renting.
- You can buy more shares (Staircasing) or sell your share and move if you want to in the future.
- You only buy what you and we feel you can comfortably afford.
Why buy with Family Mosaic?
- We help hundreds of people buy a home of their own each year, so we have lots of experience.
- We offer an excellent service before, during and after your purchase.
- We work with many national house builders and local contractors; building high quality homes in popular areas. All of our newly built homes come with a National House Building Council (NHBC) warranty or equivalent.
- We charge subsidised rents, so our homes are more affordable for you.
- We work hard to keep your costs low.
- We aim to sell to first time buyers who are able to afford the cost of Shared Ownership but unable to buy a suitable home by any other means. Household income requirements differ from scheme to scheme and reflect current house prices, equities for sale and in certain instances local authority policy.
When I buy through Shared Ownership, what am I buying?
Shared Ownership is a part buy/part rent scheme. It is designed as a stepping stone to completely owning your own home, allowing you to buy further shares in your home (Staircasing) when you can afford to. It is part funded by the government and aims to help first time buyers.
Buying through Shared Ownership makes you an owner occupier, not a part tenant. You start off buying a share in your new home on a 125 year lease. Your lease is a legal document that proves you own part of your home.
Since you will own a lease you will be a "Leaseholder" and we will be what is known as the "Landlord". You will have the same rights and responsibilities as a full owneroccupier.
If you decide to buy the remaining share of your home, you will own your home outright. Your solicitor will arrange for the freehold to be transferred to you like any other house owner. If you own an apartment, you’ll remain a Leaseholder like any other apartment owner. This is because your home is in a block of apartments and your lease sets out responsibilities for use and maintenance to all shared areas.
If you become a full owner of an apartment you will still be responsible for the ground rent and service charge, which includes the buildings insurance.
If you become a full owner of a house you may still be required to pay an estate charge if you are living in a development with shared maintenance areas. You will also need to arrange your own buildings insurance, as this will not be covered by service charge.