Shared ownership is a part-buy/part-rent scheme. It is intended for people who want to get onto the property ladder, but who can’t afford to buy a suitable home outright on the open market.

For example, if the property you are interested in is worth £100,000, you would arrange a mortgage for £50,000, to purchase a 50% share in the property, and would pay a rent of no more than 3% per annum on the 50% remaining in Aspire Housing’s ownership.

Shared ownership enables the purchase of a share in a property. The purchase is usually funded through a mortgage, arranged with a bank or building society. The initial purchase is most often for 50% of the value of the property, however in some case this can be as low as 25 % or as high as 75%. The remaining share will be owned by Aspire Housing. The customer’s share is bought on a leasehold basis, with Aspire Housing retaining the freehold in the property until the property is purchased outright. Further shares in the property can be bought (in a process known as “staircasing”) until in most cases the home can be bought outright. There are some exceptions where properties cannot be purchased outright – you will be notified of these prior to purchase through the marketing materials and within the lease.

Aspire Housing will charge a rent of up to 3% per annum on the value of the share remaining in their ownership. The purchaser is responsible for all maintenance to the property. In schemes where there are communal areas the maintenance will be carried out by Aspire Housing and a service charge will be applied. Aspire Housing will take out building insurance, this will be recharged and taken with the rent. The customer will be responsible for taking out insurance to cover their contents.

Although Aspire Housing owns a part share in the property our only involvement will be to collect rent, provide maintenance to communal areas where applicable and annually inspect the property to ensure it is being maintained. Aspire will apply a monthly management charge for providing these services, which will be taken with the rent.

Priority will be given to:

  • People on the Local Authority waiting list
  • First time buyers
  • Other people who can demonstrate that they are unable to buy a property on the open market

Your must;

  • Demonstrate that you cannot buy a suitable home without help from the shared ownership scheme
  • Have sufficient income to be able to afford the combined mortgage / rent for the scheme
  • Be a member of the EU or have your passports stamped ‘Indefinite leave to remain in UK’.
  • Not be in rent arrears or breach of tenancy agreement
  • Be a first time buyer (or first time in own right after marriage break-up, vary to account of medical needs, increased family size etc).
  • Have satisfied any CCJs or be clear of bankruptcy / creditor agreements.

There are also limits on the amount of income that an individual/family may have in order to be eligible for the scheme.

The upper limit for family income is £80,000, This may vary according to number of dependents and amount of savings. Further criteria are applicable based on housing need. It is important to note that Shared Ownership properties can’t be used for buy-to-let. Once purchased the property must become your residential home.

You will need to have some money/savings available to at least cover the cost of:

  • Professional fees associated with the purchase
  • Stamp duty where applicable
  • Mortgage arrangement fee where applicable

Mortgage lenders

Mortgage lenders

Shared ownership is aimed at people who can’t afford the mortgage on 100% of a home. There are various banks and building societies offering specific shared ownership mortgages, however, it is important to understand the income limitation on on applying. Your household income has to be less than £80,000 if you live outside of London. You also have to:

  • Be a first-time buyer, or have owned a home but can’t afford one now
  • Live in the property and not rent out any part of it
  • Have the permanent right to live in the UK

Your home may be repossessed if you do not keep up repayments on your mortgage.