Shared Ownership Eligibility Criteria

Whether or not you qualify for a Shared Ownership home – often called your ‘eligibility’ – is dependent on three separate factors. It’s important to understand the difference between them.  

General Shared Ownership Eligibility Criteria

This is defined by the government. You need to meet the general eligibility criteria to be accepted for any Shared Ownership scheme. Complete our Shared Ownership application form to confirm your eligibility  

Property Eligibility

Applications from Qualifying Armed Forces personnel, key workers and applicants in certain rural locations and sites are considered a priority for our homes. Local Authorities sometimes set their own rules in terms of allocating homes, prioritising people who, for example, already live or work in the area. This can affect whether or not we’re able to offer you a home. Where no priority criteria applies, homes within London will be allocated based on priority, whereas homes outside of London will be allocated on a first come, first served basis (Subject to any assessment or documentation required being complete.)  

Affordability

Affordability is different for everyone, and depends on your income, financial commitments and the value of the home you want to buy. In most cases, the housing costs of mortgage, rent and service charge should be no more than 40% of your net take home pay.   Our application form takes about 20 minutes to complete. It includes questions about your household income and savings, financial commitments, and your current living arrangements. Once your eligibility has been confirmed you will be assigned an LQSO number, which you will need to book a viewing or reserve a property. If you do not qualify for shared ownership, you may want to consider London Living Rent (LLR) – another route to home ownership. To find out more, visit our LLR homes page.

What is the minimum income for Shared Ownership?

There will be a guide minimum income for each of our homes for sale but often you can still proceed if you are below this minimum income if you have a higher deposit.   In general, you will need approximately £5,000 to cover the costs of purchasing a home. These costs cover things like; the reservation fee, mortgage valuation fee, mortgage arrangement fees, solicitors’ fees, removal costs and utility connection charges.  

Local authorities sometimes set minimum and maximum incomes for certain developments. Whichever home you choose you’ll need to earn enough to qualify for a mortgage and afford your monthly rent and service charges. So you’ll almost certainly need a salary or other form of regular income, for example, from established self-employment or pension payments. You need to have a good credit history with no outstanding mortgage or rental payments, and no defaults or County Court Judgments.   We recommend speaking to one of our mortgage advisors before you fall in love with one of our homes. They can help advise you on a suitable budget.

Who gets priority for Shared Ownership?

 Priority is given to members of the military. However, shared ownership is open to anyone who meets the eligibility criteria. Homes within London If the local authority does not set any specific allocation criteria applicants will be prioritised based on our allocation policy, looking at a variety of factors, including whether you are:

• already living or working in the same borough as the property;

• a first time buyer;

• an existing Local Authority or Housing Association tenant;

• going to be living in the property with children;

• MOD personnel.

Homes outside of London If the local authority does not set any specific allocation criteria L&Q will aim to offer their Shared Ownership homes on a first come, first served basis to support applicants in selecting their preferred shared ownership unit. The exception to this is for qualifying Armed Forces personnel, key workers, and applicants in certain rural locations and sites (As defined within the relevant Capital Funding Guide).