Shared Ownership
What is Shared Ownership?
Shared Ownership allows you to purchase an affordable share of a new build property rather than the entire property. The initial share that you purchase is usually between 25% and 75%. Further shares can be purchased at a later date to eventually own 100% of the property (this is known as stair casing).
A share of the property can be purchased with a mortgage, savings or both. The remaining unsold share of the property is usually owned by a Registered Provider and a reduced rent is charged on this share. As well as a rent charge, you may need to pay a service charge and ground rent.
Who can purchase Shared Ownership through Help to Buy?
Not everyone will qualify to buy through Shared Ownership. You will need to meet certain criteria to be eligible, the criteria includes:
- first time buyer or an existing shared owner moving to another shared ownership property
- employed with annual household income of less than £80,000
- sufficient income to cover the mortgage (if applicable), rent and service charges
- new build property Please note, the Registered Provider or developer may also have their own criteria
Where do I find Shared Ownership properties for sale?
Shared Ownership properties in South Ribble are advertised through Help to Buy North West (www.helptobuynw.org.uk). Help to Buy North West are the Government appointed agent for Help to Buy and Shared Ownership in the North West. Q. How do I apply? A. Apply for Shared Ownership through Help to Buy North West. Visit www.helptobuynw.org.uk or call 0300 790 0570.
Can I buy additional shares?
Yes. You can purchase additional shares at a later date to eventually own 100% of the property (this is known as stair casing). However, on some developments you are not able to staircase to the full 100%. As you increase your share in the property, the amount you pay in rent will decrease.
How much rent will I pay?
The amount of rent that you pay will depend on a number of things including the price of the property. This will be payable to the owner of the remaining share of the property, usually a Registered Provider. If you staircase to own 100% of the property, you may still have a service charge and/or ground rent to pay on the property.