Buy for less with shared ownership
Imagine being able to buy a home of your own after years of renting. It might feel like a pipe dream right now, especially with house prices continuing to rise. But getting onto the property ladder could be easier than you think.
Shared ownership is a well-established route into home ownership. You buy a percentage share in a new home and pay rent on the rest. So if you could afford to buy a 25% share, you’d pay rent on the remaining 75%.
It’s ideal for first-time buyers because you’ll have a smaller mortgage and you won’t have to find a big deposit.
In most cases, you can go on to buy more shares until you own your home outright.
After a year, you have the option to sell your share of the property based on its value at the time of selling.
Why buy using shared ownership?
- Your monthly costs could be lower than if you rent privately
- You own part of your home rather than paying rent with no return
- Your deposit will be lower than if you were buying a home outright as it’s based on the share you’re buying
- You buy a share that’s affordable to you, so you’re not at risk of stretching yourself financially
- You might be able to buy up to 100% of your home after your initial purchase – just check before you buy
- Shared ownership is a government-backed scheme that’s helped thousands of people buy their first home
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Am I eligible?
Shared ownership is for anyone who’d like to own a home but can’t afford to buy one outright. You may qualify if:
- Your household income is less than £80,000 a year, or less than £90,000 a year in London.
- You don’t currently own a home or have a legal interest in a property.
- You cannot afford all of the deposit and mortgage payments for a home that meets your needs.
- You’re forming a new household – for example, after a relationship breakdown.
- You can secure a mortgage or have funds to buy the property.
- You can afford to buy a share of the property — the monthly mortgage, rent and service charge payments should be less than 45% of your household income after tax.
How does it work?
Shared owners hold their share of their home through a lease with us, so you’ll become a leaseholder with Riverside.
Please contact our Sales Advisor who will advise you with the most up to date information.
How do I apply?
Shared Ownership is one of a number of schemes offered by the government as part of its Help to Buy initiative. To check whether you’re eligible for shared ownership, you can contact your local Help to Buy agent.
Visit www.ownyourhome.gov.uk/scheme/shared-ownership to find your local agent. Read more on how to apply.
If you’re eligible, you’ll need to instruct an independent financial advisor (IFA) to carry out an affordability assessment. This is to make sure you can manage all the costs of home ownership. If you pass the assessment and your application is approved by us, we’ll confirm what percentage share you can buy.
Need more info?
We’re here to help you through the whole process. If you’ve got any other questions, email us at sales@riverside.org.uk or fill in our contact form.