Everything you need to know about how Shared Ownership works:
- What is Shared Ownership?
- How does Shared Ownership work?
- Am I eligible for Shared Ownership?
- Can I buy more shares in my Shared Ownership home?
- Is Shared Ownership affordable for first-time buyers?
- How does Shared Ownership work with L&Q?
- Shared Ownership FAQs
What is Shared Ownership?
Shared Ownership is a government-backed scheme that helps first-time buyers afford to get on the property ladder. Through part-buy/part-rent, buyers purchase shares in a property that would otherwise be unaffordable to them.
With a small deposit, you may be eligible for a shared ownership mortgage, which has a lower monthly mortgage repayment. You can buy a share in a home and rent the rest until you can afford to own it 100%.
How does Shared Ownership work?
With the government’s Shared Ownership scheme, you buy a share of your new home and pay rent on the rest. As you save money and your financial situation improves you can buy a larger share in your home until you own it outright.
You usually put down anywhere between 25% and 75% of the property value with just a small security deposit and then pay subsidised rent for the portion of the home you don’t yet own. You take a regular mortgage on the share value that you are looking to purchase, minus the deposit amount.
As your financial situation strengthens, you can move towards full ownership through a process called ‘staircasing’.
For many new buyers in London, where property prices are notoriously high, this is one of the best and most accessible ways to become a homeowner.
L&Q have Shared Ownership houses and apartments available across the country. In London shared ownership is available in areas including Acton, Barking, Walthamstow and Whitechapel. We also offer shared ownership in Buckinghamshire, Warwickshire, Essex and Berkshire.
Fill in our application form to get the process started.
Am I eligible for Shared Ownership?
To buy a home through Shared Ownership you will need to meet the following requirements to be eligible:
- Have a combined annual household income under £80,000, or £90,000 in London
- Not own a property or part of a property
- Over 18 years old
Can I buy more shares in my Shared Ownership home?
Through a process known as ‘staircasing’ you can buy more shares in your home at any time and move towards fully owning it.
You can also sell your share of the property at any time, and our dedicated resales team are able to assist at every step of the process.
Is Shared Ownership affordable for first-time buyers?
Since the scheme started in 1990, Shared Ownership has helped thousands of people get on to the property ladder.
You only need a small deposit and enough to cover the reservation fee and mortgage valuation fee to secure your property. The monthly mortgage repayments on the portion you own are much lower than if you owned the property outright. This makes it one of the most affordable options for new buyers.
If you are allocated one of our L&Q homes, you will then meet with our appointed mortgage advisor to check that the purchase is affordable to you. They’ll help you consider the deposit, monthly payments, mortgage repayments and any other upfront and on-going costs so that you can make the best decision for your finances.
How does Shared Ownership work with L&Q?
When you buy a Shared Ownership home with L&Q you are known as a ‘owner-leaser’ and L&Q acts as the landlord. Once you buy the home outright, the freehold is usually transferred into your name. Similarly, if you purchase an apartment and fully own it, the leasehold title is typically transferred to you.
However, on some developments this may not be possible, details will be provided by the sales representative at the time of sale.
Your deposit is between 5% and 10% of the share you are buying. You pay a mortgage on the share you own, and you pay L&Q rent on the share you don’t own.
Have a look at our available Shared Ownership properties in London and across England: