What am I buying?

Shared Ownership means you own a share of your home. You won't share it with anyone else. As a homeowner, you'll enjoy the benefits and responsibilities of property ownership.

Why buy a Shared Ownership Home?

Build equity, not just pay rent. Shared Ownership allows you to buy a share of your home while paying rent on the rest. This means a smaller mortgage and deposit, making it easier to get on the property ladder.

Who is eligible for Shared Ownership?

Eligibility for Shared Ownership can vary, but generally, you should:

• Have a household income below £80,000 (outside of London)
• Be over 18 years old
• Be unable to afford a home on the open market
• Be a first-time buyer or selling an existing home
• Have a good credit history

Want to know if you qualify? Check your eligibility for Shared Ownership.

Do I need to be a first time buyer?

Shared Ownership isn't just for first-time buyers. While primarily aimed at those new to the property ladder, it can also be an option for existing homeowners in certain circumstances.

How are the properties allocated?

Shared Ownership homes will be allocated on a first-come, first-served basis to approved buyers.

The exception is when Armed Forces personnel apply, and in circumstances of under supply, priority will be given to serving military personnel and former members of the British Armed Forces discharged in the last 2 years.

How does Staircasing work?

Staircasing is the process of buying additional shares in your Shared Ownership home.

What am I buying?

Shared Ownership doesn’t mean that you have to share your home with anyone else! Shared Ownership homes are sold on a ‘leasehold’ basis and when you buy a home with Shared Ownership you are a homeowner and will take on all the responsibilities and gain all the benefits with owning your home.

Why buy a Shared Ownership Home?

You are investing in your own home rather than paying rent with no return. You will only need to secure a mortgage for a percentage of the property price rather than the whole amount which makes it more affordable in the short term. You’ll need a much smaller deposit than if you took out a mortgage for the whole property.

The combined monthly mortgage and rent payments of Shared Ownership usually work out cheaper than buying the entire property straightaway, and often less than renting a similar property privately. In most cases you can buy additional shares of your home if you want to, meaning that as your income increases, you can buy more of your home. The more of your home you own, the less rent there is to pay. You only buy the share you can afford so you don’t overstretch yourself financially.

What’s the eligibility criteria for Shared Ownership?

You may be eligible for Shared Ownership if:

• Your household income is £80,000 a year or less
• You are unable to buy a suitable home on the open market
• Over 18 years old
• First-time buyer (or you used to own a home, but can’t afford to buy one now
• Be registered on the council’s housing register, HomeChoice.
• Able to afford the payments for your share

Priority for Shared Ownership is given in the following order:

• Existing Social Housing Tenants and MOD Personal Local Priorities as set by Warwick District Council (these may vary from development to development).
• Other first-time buyers.

Although Shared Ownership is usually aimed at first-time buyers, applications from non-first time buyers may also be considered in some circumstances.

Check if you are eligible to buy a Shared Ownership here.

How are the properties allocated?

Allocations are made on a first-come, first-served basis to approved buyers.

How does staircasing work?

Staircasing is the term given to buying extra shares in your Shared Ownership property up to 100%. Most leases allow you to buy extra shares after you have owned your initial shares for 3 months. You may choose to go up another step on the home ownership ladder by buying some of the remaining shares in your home; this is known as partial staircasing. If you choose to purchase all of the remaining shares in your home, it is known as final staircasing.

If you are thinking of partial staircasing, you can usually buy shares in tranches of 25%. However, most leases issued after July 2004 allow you to staircase in multiples of 10%. If you are considering staircasing, you will need to find out from your lender whether they are willing to lend you a further amount. The amount you are able to borrow will help you determine the size of the further share you are able to purchase. If you are considering changing mortgage providers, you need to consider if your current mortgage has any redemption penalties.

How much will I pay for extra shares?

The shares will be sold at the current market value, disregarding any improvements to your home that we have consented to. The assessment of the current market value will be made by a qualified surveyor valuer, by way of an open market valuation of the property.

What happens if I can’t afford to buy more?

You will always have your share, which you can sell on at any time at market value.  Warwick District Council have the right to buy back the property before it is marketed to anyone else.

Will my property become freehold when I fully Staircase?

This depends on the type of property you have and what is contained in the lease. If you live in a flat, the property will remain leasehold. If you live in a house, it is likely that the freehold interest will transfer to you on completion, unless we do not own the freehold or your lease does not allow us to transfer the freehold.

Please note that some leases state that the freehold will not transfer until three months after completion. Your solicitor will be able to advise you on this.

Can I share ownership of my home with someone else?

Yes! A maximum of 4 people can become joint owners on the property. But this would need to be discussed with your solicitor.

Who is responsible for maintaining my home?

As a homeowner you will be responsible. If you are buying a new build property, you should undertake a snagging survey, this is in place to check for problems and issues that may arise with a new build home and these problems should be resolved by the developers before you move in. Additionally, you usually have a guarantee of at least 2 years for these kinds of things.

Can I decorate my house my way?

Of course! But if you’re thinking of making structural changes you must check the terms of your lease and you may need to get permission before any changes are made.

Does Shared Ownership mean sharing with another person?

That’s a plain and simple no, and one of the most common myths about Shared Ownership. You own a share of a property, and the other share is owned by the developer, not another individual. You’re the only one who lives there (except from family you live with) it works in the same way as buying outright.

How do I sell my Shared Ownership lease?

You can sell your home at any time. The terms of your lease may vary but normally the council or your landlord has eight weeks to find a buyer for your home. This helps you as it saves you the expense of going to an estate agent and doing all the hard work yourself. After the eight weeks, if we are unable to find a buyer, you can sell your home through an estate agent in the normal way.

Assignment is the term given when you sell your shared ownership lease. When you sell your shared ownership lease, the purchaser is agreeing to take on the terms and conditions within the lease. This transfer of responsibilities from one party to another is the ‘assignment’. You can only sell your share of the lease. For example, if you own a 50% share, then you can only sell 50%.

As you buy more shares, you own a larger portion of the property, and you pay less rent on the remaining share. Eventually, you could own 100% of your home.

Want to know more about staircasing? Let us know!

What happens when I want to sell my Shared Ownership home?

Selling your shared ownership home is called a resale.  You have the right to sell your share of the property at any time.

Want to know more? Get in touch by filling in this form - Shared ownership application 

Can I sublet?

You cannot sublet your Shared Ownership home.

This means you can't rent out the entire property. However, you can take in a lodger to share your home. A lodger rents a room and shares common areas like the kitchen and bathroom.

Can I have pets?

Pet restrictions vary depending on your property.

Generally, there are no pet restrictions for houses. However, apartments often have pet policies outlined in the lease. Always check the lease of the property you're buying to understand any pet rules.

I have further questions to ask…

Our team is here for you. Get in touch by filling in this form - Shared ownership application