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Shared Ownership in South Holland

If you can't quite afford the mortgage on 100 percent of a home, shared ownership offers you the chance to buy a share of your home, which is typically between 25 and 75 percent of the property value, and then you pay rent on the remaining share.

You can increase your share at a later date when you can afford to, and in most cases can staircase up to full ownership.

How shared ownership works

You buy a percentage of the open market value based on what mortgage your income allows. You then pay rent on the remaining share to a Registered Provider (housing association). In some cases, you may have to pay a service charge.

Using an example of estimated monthly costs for purchasing a 50 percent share (estimated in December 2019), you could expect to pay around £645 a month, as detailed below:

Open Market Price£150,000
Share Value£75,000
Deposit Required£3,750
Mortgage£71,250
Unsold Value£75,000
Monthly Rent£156.25
Service Charge£80
Estimated mortgage per month£409
Estimated monthly cost£645         

Shared ownership eligibility

You might be eligible for shared ownership if:

  • your household income is less than £80,000 per year (if you have a large deposit and earning towards the higher end of the income threshold, you may be refused if applying in a lower value area)
  • you are a first time buyer, or current/previous home owner with a legitimate reason for requiring affordable housing
  • you must be at least 18 years old
  • you have a good credit rating
  • you have at least £1500 in savings
  • you have a minimum of 5 percent deposit.

Apply for shared ownership

In most cases, you will need to apply through the Help to Buy website or you may have to apply directly through the Housing Developer or local Estate Agent. There are a number of new shared ownership homes and re-sale opportunities across the district, check online or speak to local estate agents to register your interest.