Shared ownership FAQs
- What is Shared ownership?
- How does Shared ownership work?
- Could I be eligible?
- What do I need to know about the property?
- How can I be sure the home I buy under has been built to industry standards?
- Can I share the ownership of the lease with someone else?
- Can I increase my share?
- What costs will I have to pay at the start?
- What happens if I want to move home?
- What else do I need to know?
- What do I do next?
Shared ownership is offered to people who cannot buy a property outright in England without assistance. Government funds are made available enabling Sanctuary Housing Association, a registered social landlord, to provide new homes under the scheme.
The scheme allows you to purchase a share of a property, which can be between 25% and 75%. The size of the share you buy would be funded by a mortgage and is dependent on your savings and income. You will have to pay some rent on the remaining share; therefore the higher the share you purchase, the less rent you will pay. You should aim to buy as much as you can comfortably afford. Remember that whatever the size of your share, you will still be a home owner.
You will need to be assessed against the criteria for each individual scheme and full details of your finances will be needed. You could be a first time buyer, getting a foot on the property ladder, or needing to find a new home following a relationship breakdown, a tenant on a housing list with the local authority or a key worker who has to live in the locality.
If you have to borrow money for all or part of your share from a bank or building society, then repayments can vary as interest rates change. We advise that you take independent financial advice in this respect. To apply you will need to register with the local agent or authority; we can help you to do this.
Your home should suit your needs, depending on your financial and family situation. When you purchase your Shared ownership home you will be granted a lease setting out your rights and responsibilities. It will detail how we work out the rent and any service charges you are required to pay. As a home owner you will be responsible for running costs, such as council tax, maintenance, insurance and repairs.
We follow the mandatory requirements that all home builders must meet in the marketing, selling and after-sales customer service of homes, as set out in the Consumer Code. For further information, please see the Consumer Code for Home Builders PDF 194KB. The code documents and the scheme rules, can also be obtained at www.consumercodeforhomebuilders.com.
Yes, up to four people can become joint owners, though we would advise that you discuss this with your solicitor.
Yes, in most cases you can increase your share and, in effect, buy your home in stages, which is called ‘staircasing’. It is often possible to buy your home outright and full details of this can be found in your individual lease.
Your mortgage advisor will give you information on costs relating to application fees, a valuation, survey and deposit. You will also need a solicitor – it is a good idea to get an estimate of their costs and find out how much land registry charges, search fees and stamp duty (if applicable) will be. When a suitable property is identified, you will be asked to pay a non-refundable deposit.
You can sell your home at any time but you must advise us in writing. You can either sell the part you own to someone we nominate, or you can buy the remaining share and sell the property if the lease allows.
An independent valuation of the property will be made and you will benefit from any increase in its value, according to your share. You should also be aware that you would be affected if property prices fall.
We can provide you with more information on your eligibility and legal requirements but we strongly advise that you take independent financial and legal advice before buying a home. We can also give you more information on Sanctuary’s role as a registered social landlord and about terms and conditions that apply to this scheme.
If you are interested, please complete the form and return it to the address detailed on the application form.
Opportunities are limited so we recommend that you do this as soon as possible.
If you have any further questions:
- Please contact the Homebuy team FREE on: 0800 916 1520
- Or email: email@example.com