L&Q Shared Ownership

L&Q at Victoria Riverside

What is Shared Ownership?

Under the Shared Ownership scheme you part-buy/part-rent your home, making it possible for first-time buyers and families to get on the property ladder.

The minimum share you can purchase is 25% and the maximum is 75%. You will usually pay a mortgage on the part you own and a subsidised rent on the part you don’t own. As your income rises, you can increase the share you own until you eventually own 100%.

Homes within London will be allocated based on priority whereas homes outside of London will be allocated on a first come, first served basis.

Shared Ownership Eligibility criteria

Shared Ownership is for anyone who doesn’t currently own a home. If you want to get on the property ladder, but can’t afford to buy outright on the open market, then Shared Ownership could be for you.

It doesn’t matter what your job is, but your income must be less than £90,000 within London and £80,000 outside of London. You’re no longer required to live or work in the area where you intend to buy, however there may be some exceptions to these rules where historic agreements have been made with local authorities about certain developments.

L&Q at Victoria Riverside Shared Ownership Eligibility Quick Check

The first step of the application for a shared home ownership mortgage is to speak to the housing association in your local council. They'll also help you determine whether you're eligible. However, the home doesn't have to be council-owned in most cases. The next step is to contact a lender. Often the housing advisor will assist you with this part of the equity share. There are strict affordability checks required by the lender. The lender will also require that you provide the deposit money at the time of loan origination. Ensure that you can afford the costs of ownership. You can complete a quick eligibility check by assessing yourself against these bullet points:

  • Must have a household income that doesn't exceed £80,000 per annum
  • Must have a deposit of at least 5% of the share-value of the home you’re purchasing
  • Must be a first-time buyer or someone who previously owned a home that can’t afford to purchase the property outright.
  • If living in a current Shared Ownership property then property must be the purchasers' only home
  • You must pass a financial assessment, proving financial capability to buy the minimum share value and monthly payments on the home
  • You must meet the local authority requirements