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Expert Mortgage & Protection advice in Uttoxeter, Staffordshire

Find a mortgage that's right for you at KMJ Mortgages in Uttoxeter. Staffordshire. Whether you are a first time buyer, looking to remortgage, move house or invest in a buy-to-let property, we can search thousands of mortgages to suit your individual needs.

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Shared Ownership

How does the scheme work?

Shared ownership homes are provided through a housing association. They work by offering first-time buyers a share of the property ownership.  

If you are struggling to save up the deposit to buy a home, then shared ownership may be for you. Shared ownership allows you to buy 25%-75% of a property and pay rent on the remaining share, with the option to buy up to 75% if you choose to. Your ownership on the property would be leasehold, and you will pay your rent to the building association that owns the freehold.


How does shared ownership work?

The government offers properties through a housing association, intending to give people who are unable to buy a property through the conventional means, an opportunity to get on the property ladder.

For a shared ownership property, you would only need 5% of the property value for your deposit and then a mortgage to buy the rest of your share. You will own the property with the housing association and pay rent on the share that you don’t own, alongside any mortgage repayment that you have. Over time you can increase your ownership share until you own the whole property.

Once you own the property completely, you can live in it or sell it as you please. It's worth noting that your housing association will have the first refusal for 21 years, this means they will have the opportunity to buy it from you before it has been offered to anyone else.

If you don’t own the property in its entirety, then you can still sell your share. The housing association will still own the remaining percentage and will have the first refusal on the property.


Is shared ownership for me?

The shared ownership scheme is aimed to benefit low-income households that would otherwise struggle to get onto the property ladder.

To be eligible for the scheme, your household income must be below £80,000, or £90,000 in the London area.

You could buy a home through Help to Buy Shared Ownership in England if:

  • Your household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London
  • You are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.
  • Similarly, to a regular mortgage, you will need a good credit history, and financial documentation will need to be provided to prove that you can afford the costs.

If you have the means to get a regular mortgage, we would recommend it; a shared ownership mortgage can work out more expensive in the long term.


What are the benefits and drawbacks of shared ownership?

As with most things, there are positives and negatives to shared ownership; if you think you would be eligible, then we would recommend speaking to a member of our team.


The scheme is aimed at households that have a lower income. It allows them to get on the property ladder and potentially own a property that they previously couldn’t afford.

You can gradually buy a larger share of the property in time, when you can afford it.

As you buy a larger share in the property, your rent will decrease so that it may decrease your current monthly outgoings.


If and when you choose to sell, the process is slower than selling an ordinary house.

If you only own a share of the property, then you won't be able to alter it without permission, and in some cases, not at all.

There will likely be limitations on pet ownership and sub-letting rooms.

The combination of rent and a mortgage may increase your monthly outgoings.


Selling a shared ownership home

Selling shared ownership housing is very similar to selling an average home; you will just have to work with the housing association to sell the property. As was said above, the housing association will have the first refusal on the property, as they may want to find their buyer. This will slow the process down, but you are still free to sell whenever you choose to.


Find out more about the Shared Ownership Scheme

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.

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