Shared ownership is another way to buy your own home. You buy a percentage, and pay rent on the rest. We own part of it - but you're living there, you decorate it, and you decide when to sell.
Buying a percentage means a smaller deposit and smaller mortgage. We'll help you work out what share you can comfortably afford, but you can increase your share later if, for example, your income goes up (this is known as staircasing).
Can I choose the kind of property I want to buy?
We offer range of different property types and sizes, you an see the full range of what is currently available in the Shared Ownership section of the site.
Can I choose where I want to live?
Local Authorities across London have different priorities when it comes to the people they want to house; such as those who live or work in the borough already. You can tell us which borough you'd prefer to live in on your application form and we will be able to tell you if any eligibility criteria apply for that area.
How much will a Shared Ownership home cost?
On a monthly basis, owning with a Shared Ownership is usually equivalent to the cost of renting a similar home privately, with the added benefit that you own a share in the home’s value.
What do I have to pay each month?
Each month you pay:
- Your mortgage (on the percentage of the property you own)
- Your rent
- Your service charge
- And, annual ground rent.
Your mortgage payment
Each month you’ll make your payment to your mortgage lender, usually by direct debit. The mortgage payment is between you and the lender
On the first day of each month you’ll pay your rent to us by direct debit. This makes payment simple and convenient for everyone as the payments are taken directly from your bank account. Your rent will go up on April 1st each year by a set amount as agreed in your lease. We’ll tell you the amount you will have to pay for your new rent every February/March.
Your service charge
Your service charge is calculated as a monthly rate and covers all of the following:
- Cost of general repairs to communal areas
- Costs of repairing and replacing communal lighting
- Cleaning communal areas (typically once a week)
- Maintenance and repair of communal entry door systems
- Gardening and grounds maintenance
- Lift maintenance (if applicable), servicing and repair including emergency telephone
- Management charge and audit fees
- Buildings insurance
- Reserve fund for cyclical decorations and major works
- Additional services, such as concierge service or amenities (if applicable).
This is the money held in an interest gathering bank account and is put aside to contribute towards the cost of any cyclical decorations and or major works to the block or estate. The aim of the fund is to fully cover major works so that leaseholders are not given large bills for their share. There may be a shortfall at times and these will be recharged to Leaseholders in accordance with the terms of their lease.
Are there any restrictions on these homes?
Yes, we’ll explain the terms of your purchase in more detail when you apply. Examples include –
- You can’t sub-let your home
- You need permission to make any structural changes to the property
- Permission may be needed for pets if you’re buying an apartment
Do I have to share my home with anyone else?
No! That’s not what Shared Ownership means! The shared part just means we own a share of your home and so do you.
You can, of course, apply to make a joint purchase – shared ownership – shared home – shared chores 😉