Shared Ownership


Shared ownership purchases are becoming an ever-more popular way for individuals to get on to the property ladder. Indeed, many recently completed new developments in north London and South Herts are exclusively reserved for shared-ownership applicants.

The concept behind shared-ownership is that the purchaser buys only a certain percentage of the property. The remaining percentage is owned by the housing company or association. The purchaser then pays rent to the company for this outstanding portion. The portion of the property which is purchased is mortgaged in the usual way. However, not all lenders will provide mortgages on shared-ownership properties.

‘A Foot On The Ladder’

The advantage of this arrangement is that the purchaser can gain a ‘foot on the housing ladder’ when they might not be able to afford to buy a property outright. If the value of the property goes up, then their ‘stake’ also goes up. In the past, many of our clients have sold their shared-ownership properties and used any gain in equity to place a deposit on a home, which they can purchase without having to share ownership.

In-House Expertise

We will guide you towards the lenders who are most comfortable with this type of lending and walk you through the process of getting the keys to your new home. If you have a question about getting a shared-ownership mortgage or remortgaging a shared-ownership property, contact us today.


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About Clifford Davis

Clifford Davis is a premier provider of property-related financial advice. Based in Barnet, North London, we pride ourselves on being able to advise and to provide guidance in all areas of property-related finance.

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Frequently asked questions

Answers to the most common question we get asked
What is Shared Ownership in the UK?
Shared Ownership is a government scheme that allows individuals to buy a share (usually between 25% and 75%) of a property and pay rent on the remaining share. It's designed to help people get on the property ladder who might not otherwise afford it.
Who is eligible for Shared Ownership in the UK
Eligibility criteria can vary, but generally, you need to be a first-time buyer, have a household income below a certain threshold, and not currently own a home. Some properties may also be designated for key workers.
Can I get a Shared Ownership mortgage for a new-build property in the UK?
Yes, Shared Ownership is commonly associated with new-build properties, but it can also apply to existing homes. Developers often work with housing associations to offer Shared Ownership options on new builds.
Can I sell my Shared Ownership property in the UK?
Yes, you can sell your Shared Ownership property at any time. However, the housing association has the right of first refusal, meaning they have the option to find a buyer before you do.
Can I remortgage my Shared Ownership property in the UK?
Yes, you can remortgage your Shared Ownership property to get a better mortgage deal or to release equity for staircasing. Keep in mind that the housing association may need to give consent.
How does Shared Ownership work in the UK?
With Shared Ownership, you purchase a share of a property and pay a subsidized rent on the remaining share to a housing association. Over time, you can buy additional shares, a process known as "staircasing," until you own the property outright.
What is the minimum deposit required for Shared Ownership mortgages in the UK?
The deposit required for Shared Ownership is typically based on the share you are buying. It's usually a percentage of the share's value, which can vary but often starts at around 5% to 10%.
What are the ongoing costs of Shared Ownership in the UK?
The ongoing costs include the mortgage payments on your share, rent on the remaining share, service charges, and utility bills. Additionally, you may have to pay ground rent if the property is leasehold.
How do I apply for a Shared Ownership mortgage in the UK?
To apply for a Shared Ownership mortgage, you typically need to contact a housing association or developer offering Shared Ownership properties. You'll also need to get a mortgage offer from a lender who offers Shared Ownership products.
What happens if I want to buy more shares of my Shared Ownership property in the UK?
If you want to buy more shares of your Shared Ownership property, you can do so through a process called "staircasing." The price of the additional shares is based on the property's current market value.
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