Shared Ownership 101

January 2016



In light of the recent changes to the Shared Ownership scheme, we thought we would tell you exactly what the scheme involves.

Shared Ownership presents buyers with an opportunity to purchase a home they couldn’t otherwise afford.

Read our quick guide to the scheme and find out how you can apply.

What is Shared Ownership?

Shared Ownership gives you the opportunity to purchase a percentage of a property, ranging from 25% to 75%. This means you’ll only need to secure a mortgage for the amount that you wish to buy.

Here is an example to show how it would work:

The full purchase price of the property is £120,000, and the Registered Provider is offering a 40% share. All you will need to do is pay a £4,800 deposit and secure a mortgage of £43,200.

This has been worked out by basing the costs on £48,000 (40% of £120,000), which is what you would be purchasing.

Who owns the rest of the property?

The Registered Provider who offers the property for sale retains the remaining share in the house. You will then need to pay rent to them for the remaining share of the home; however this is at an affordable price as it will only be a percentage of the full market rent.

Here is an example to show how it would work:

If you have bought a 50% share in a property that cost you £82,500, you will pay a monthly rent of £189.00 to the Registered Provider.

You may also have to pay other charges such as a service charge, building insurance and management fees.

Can I purchase more shares?

Absolutely! The scheme allows buyers the chance to eventually own 100% of the property. Purchasing more shares is known as staircasing. To do this you must inform the Registered Provider that you wish to purchase further shares in your home, an open-market valuation will then be obtained so that a price can be agreed for the share increase.

Am I eligible?

There have been some changes to the eligibility criteria for this scheme. The new criteria is as follows:

  • You have a household income of less than £80,000.
  • You are unable to purchase a property suitable for your needs on the open market.
  • You are not in mortgage or rent arrears or in breach of your current tenancy agreement.
  • You can afford the purchase and sustain home ownership in the long term.

How do I apply?

You can apply for the scheme on the Help to Buy NEYH website here. You need to provide your personal and financial details and give details on the area that you want to live. You will then receive a confirmation email within the hour.

What properties are available on the scheme?

All types of properties are available on the Shared Ownership scheme. Currently on our website we have 143 homes available on the scheme all over the North East, Yorkshire and Humberside. To view all properties on the website, click here

Further changes to the scheme

  • Existing shared owners can now move from one grant funded property to another.
  • The only priority group will be serving members of the Armed Forces or those honourably discharged in the last 2 years.
  • The bedroom entitlement has now been dismissed; meaning the maximum number of bedrooms has been removed. 

Anita Forth, our Low Cost Home Ownership Officer added “Shared Ownership is fantastic for those struggling to get on the property ladder in the traditional way. From completing a lot of Shared Ownership cases, I have seen many that have eventually bought 100% of their home which is fantastic to see.”

For any further information about Shared Ownership, please contact Anita on 0113 636 6189 or email her on Anita.Forth@yorkshirehousing.co.uk.