Stepping onto the Property Ladder with a Friend

When it comes to buying your first home, it’s easy to assume that purchasing solo or buying as a couple are the only ways onto the property ladder. However, here at L&Q, we have buyers across the country who have stepped on to the ladder as friends, colleagues and family members through the Shared Ownership scheme, proving that there’s more than one way to own a home.

Danielle and Joe, two London-based content producers, went from co-workers, to friends, to first-time buyers. Aged 27 and 23, they met while working at a production company in Shoreditch and bonded over a shared ambition: to put down roots in the capital.

“Having grown up in London, I knew I wanted to stay here,” says Danielle. “But buying alone just wasn’t an option. On my income, I couldn’t afford the kind of deposit that would get me anywhere near the areas I wanted to live in.”

Joe, who had also been saving while living at home, was in a similar position. “We started talking about pooling our savings and buying somewhere together. It was a big decision – we’d only known each other for nine months – but we both knew it was time to move on from our parents’ houses!”

After a few weeks of house-hunting on the open market, they began to feel disheartened. The properties they could afford didn’t meet their needs, and the homes they liked were well over budget. Then they discovered Shared Ownership: “Once we came across Shared Ownership, everything changed,” says Joe. “We realised we could afford a modern, well-connected flat in East London — and with a much lower deposit than we thought we’d need.”

Whether you’re buying with your best friend, a colleague, a sibling or a parent, Shared Ownership can offer a more affordable, flexible way to own your home. You can apply jointly as long as you both meet the eligibility criteria: for example, you must have a combined household income under £90,000 in London (or £80,000 outside London), a good credit history, and enough savings to cover your deposit and other buying costs. Your finances will be assessed together, and you’ll need to submit a joint application for your chosen home.

If you’re in the position to step onto the property ladder solo, but still want the perks of living near your pal, L&Q’s Refer a Friend scheme might be the perfect solution. If you refer someone who goes on to purchase a home with L&Q, both of you could receive a £500 reward.*

Another purchase inspired by friendship after over a decade of renting in southeast London saw best friends Monika and Marta make their respective moves to homeownership with L&Q at Kidbrooke Village – in apartments directly opposite each other.

For both women, Shared Ownership was the key to unlocking homeownership. “On the open market, there’s no way we could’ve afforded to buy in London, especially with how high rents are. I could have never saved enough for a deposit,” Monika explains. “Even renting was becoming unsustainable – Shared Ownership offered us a more affordable alternative while also letting us invest in a home of our own.”

Your questions answered:

Can I buy a Shared Ownership property with a friend?

Yes – friends looking to buy together can make a joint application for a Shared Ownership home as long as you each have a good credit history with no outstanding mortgage or rental payments, and no defaults or County Court Judgments.

What’s the Shared Ownership eligibility criteria?

To be eligible for Shared Ownership, you should have a combined annual household income under £80,000, or £90,000 in London; not own a property, or part of a property, at the time of completing on your purchase; have a good credit history; have a minimum of £5,000 to cover the costs of buying a home; be over 18 years of age and be able to obtain a mortgage. This applies whether you’re buying solo, with a partner, with a friend or with a family member. Find out more about Shared Ownership eligibility here.

What if we want to sell our Shared Ownership home?

You can sell your home at any time. Under the terms of your lease, L&Q have eight weeks to find a buyer for your home so your property can remain as a Shared Ownership property. You can then instruct an estate agent on the open market.

My friend isn’t a first-time buyer, but I am. Can we still apply?

Shared Ownership isn’t just for first-time buyers. While the scheme is mainly associated with helping people get on the property ladder, it is not limited to this group. Individuals who have owned a property before may qualify for Shared Ownership if they are in the process of selling their current property.

Find out more about buying with a friend through Shared Ownership: https://lqhomes.com/shared-ownership/

*T&Cs apply.