Five reasons to love shared ownership

February 12, 2021 | Laura Whittle

This Valentine’s Day, we’re sharing the love… for shared ownership.

Shared ownership is another way to buy your own home. You buy a percentage, and pay rent on the rest.

The part-buy, part-rent scheme is popular with first-time buyers who are looking to get on the property ladders but can’t afford the deposit and mortgage needed to buy a property outright. It’s also an affordable option for those who are starting again, perhaps after a relationship breakdown, or those in later life looking to downsize.

We know there are plenty of reasons to fall head over heels for shared ownership, so here are our top five…

1. Get on the ladder sooner with a smaller deposit

 One of the best things about buying a shared ownership home is that the deposits are usually much smaller than buying on the open market. With shared ownership, you’ll only need to raise as little as a 5% deposit of the share you’re purchasing, not for the full value of the property.

2. More money in your pocket each month

 On average, even with the cost of your mortgage repayments plus a reduced rent, we have found that shared ownership properties work out cheaper per month than renting privately. This means you might be able to reduce your monthly outgoings whilst building your equity.

3. Put your own stamp on it

One of the most exciting things about buying your dream home, is putting your own stamp on it. With shared ownership, you’re free to decorate your home any way you like – it is yours after all!

4. Buy more of your home whenever you’re ready

Shared ownership is incredibly flexible, so if and when you’re ready, you have the option to increase your shares over time (this is called staircasing). In most cases you can staircase up to 100% ownership and pay no rent at all.

5. A stake in the property market

If you buy a shared ownership home and decide to move on in the future, you can sell your share at any time. If your home has gone up in value, you will benefit from any rise in the value of your share when it is sold. (And if you own 100%, you will benefit from the full increase in the value of your home.)