What is Shared Ownership?

Shared ownership is a way of part-owning and part-renting a property. It is designed for people who simply can’t afford to buy a home outright. Because you buy a share, the deposit you need for a mortgage is lower than if you were to buy the full amount.

With shared ownership, you can buy a share, between 25% and 75% of the market value of your property, with a mortgage. You pay rent to us on the remaining share of the property.

Shared ownership properties are leasehold properties, meaning you will own the lease, for a fixed period of time. You also have to pay a service charge for the property, which is usually charged on a monthly basis.

Shared ownership is a government-funded low-cost home ownership (LCHO) initiative which is aimed at helping people take that first step into home ownership.

Why is it called shared ownership?

Ownership of the property is shared between you and the registered provider (RP). The RP keeps the remaining percentage share in the property that you have not bought. You may buy your share with a partner, but sub-letting is not allowed under the terms of the lease.

Am I eligible?

PA Housing will give priority to:

  • Existing tenants of the local authority or a housing association (this is only applicable if you are the tenancy holder and your home will become available if you leave)
  • Certain categories of staff employed by the Ministry of Defense (MoD) as specified by the Homes and Communities Agency (HCA)
  • Those who live or work in the borough where the property is for sale

Other eligibility criteria

  • When purchasing a property in London, a maximum household income cap of £90,000 per annum applies, £60,000 outside of London
  • Your name, or the name of any joint applicant, must not be on the deeds of another property at the point of exchange. Whether in the United Kingdom or abroad
  • You must not have been in rent arrears during the last 12 months
  • The percentage of the home you can own is linked to your income and is subject to a financial assessment from an independent Financial Adviser (IFA)

Viewing your new home?

Once you have registered with us, we will send you details of our developments and invite you view the property suited to you.  We would expect that you would have spoken with a Financial Advisor to ascertain your affordability, and we can provide contacts for you with the initial assessment being free of charge

When we meet, you will be given information about the buying process and this will give you the opportunity to ask any questions.  If you decide you want to proceed a reservation form is readily available at the viewing

To ensure that all interested applicants are given ample opportunity to express an interest in a property, PA Housing will allow a period of 5 working days for you to provide the relevant documents.  At this point the holding fee of £500 to secure the unit will be required

If you accept the offer, we will provide you with our bank details to pay your reservation fee and upon receipt of funds a formal offer letter will be sent to you. The offer letter will include a list of recommended solicitors who have experience with Shared Ownership Sales. And also a confirmation form.  You will be required to complete and return the attached form which requests your solicitor’s details.  At this point the legal process will begin

Please note if the property is a new build, the completion date may be subject to change but you will always be kept updated

A valuation will need to be done prior to your mortgage offer being issued. The Surveyor working on behalf of the mortgage lender will contact our sales team to make arrangements. Once your mortgage offer had been approved, the next step will be exchange of contracts followed by an agreed completion date.  Upon completion you will receive your keys for your new home……..congratulations!!!