Shared Ownership

You can take advantage of the Shared Ownership scheme if you are unable to afford all of the deposit and mortgage payments for a home that meets your needs.  You buy a share of the property and pay rent to a landlord on the rest.  Shared ownership homes are usually offered by Local Authorities Housing associates and some building developers.

As a buyer you would purchase between 25% and 75% of the property and pay rental on the remaining share, as the buyer you are granted a lease on the element of the property that remains with the landlord.

The percentage you purchase will be determined by several factors and the seller will usually work with you to assess the most affordable split of ownership.  You will need a deposit and the ability to obtain mortgage finance as well as being able to afford the balance in rent due.  You are able to purchase further shares in the property you partly own, this will reduce the rental you pay to the landlord, this is called staircasing.

The property value is recalculated when you decide to staircase and so if property prices are rising you may find that buying another share of the property is more expense than continuing to pay rental and it important to seek professional financial advice.

There are certain criteria to meet to be eligible for Shared ownership and these are available at: https://www.gov.uk/shared-ownership-scheme/who-can-apply.

You can sell your home at any point, and sometimes the landlord will ask for first refusal and sell the property for you.

Help to Buy (Lifetime ISA)

A Lifetime ISA (L-ISA) is the new UK Government Scheme to replace the old Help to Buy ISA. Those under 40 can open one to help save a deposit for a home, some providers allow you to view you and your partners L-ISA together for combined goals.

You can save upto £4,000.00 per year until you’re 50 and gain a 25% bonus from the UK Government. You can only withdraw money for purchasing a house or a few other limited execptions. withdrawing for another reason will incurr a penalty fee & loss of the bonus.