Shared Ownership

Advantages:

• The rent paid on the share you do not own, is often cheaper than a mortgage payment would be, on the full purchase price.
• You can purchase a house with a smaller deposit.
• You could potentially buy a bigger or higher value home than if you weren't using shared ownership.

Disadvantages:

• You have to pay rent and a mortgage at the same time. The rent continues after your mortgage has been paid off.
• There may be restrictions on what you can do with the property, in terms of alterations.
• Your rent may increase over time.

In some areas of the country, housing associations may choose to waive the rent payment. For example, in areas like Keswick in Cumbria, where there are a high number of second homes, a housing association may waive the rent to encourage local occupancy.

Selling a shared ownership property can be a little trickier.

Before you market your shared ownership home, you must check with your housing association. They may wish to buy your share. If they do not, a potential purchaser will have to fit into their eligibility criteria.

Many shared ownership properties are earmarked to remain as shared ownership regardless of who buys it. This means that purchasing the whole property may not be an option. Therefore, you could be limited as to who wishes to purchase the property after you, which could lead to a longer sale time. However, ultimately, if you want to sell, you can.

• Your household income is £80,000 a year or less (£90,000 a year or less in London).
• You cannot afford all of the deposit and mortgage payments for a home that meets your needs.

• You're a first-time buyer.
• You used to own a home but cannot afford to buy one now.
• You're forming a new household - for example, after a relationship breakdown.
• You're an existing shared owner, and you want to move.
• You own a home and want to move but cannot afford a new home that meets your needs.