Buying a Shared Ownership property
Am I eligible?
To be eligible for Shared Ownership your total annual household income must not exceed £80,000 (or £90,000 in London) and you must not own another property at the point of completing on your Shared Ownership home. You must also be able to meet the costs of purchasing and owning your home. Full details of the eligibility criteria can be found here.
Can I purchase a Shared Ownership home if I currently own another property?
Your home must be under offer before you can apply for another Shared Ownership home. If you’re ready to move on, your first step is to get in touch with the Shared Ownership team.
What is an affordability assessment?
When you have identified a home you are interested in, an independent financial advisors (IFA) will need to conduct an affordability assessment. The advisor talks through your finances, such as your incomings, outgoings and savings. Then they let us know the share we can offer you. It is important to give the advisor accurate information because if you forget to include all information, this could impact your ability to buy.
Can I use my own Independent Financial Advisor (IFA)?
You are free to use your own IFA, however we would recommend that you choose one who is familiar with Shared Ownership and the affordability assessment tools which they will need to complete. See our list of panel IFAs here.
Do I need a good credit rating?
A poor credit rating does not automatically rule you out from buying a home, but you may find it hard to get a mortgage. Before you apply for a home, you need an affordability assessment – this will help you and us understand your financial situation.
Are there any up-front costs?
If you are buying a newly built property, you will be required to pay a reservation fee to secure your home and will also be responsible for any costs associated with securing your mortgage, deposit and your legal fees.
If you are buying a share of an existing shared ownership home you will be required to pay the cost of a RICS valuation as well as any costs associated with securing your mortgage, deposit and your legal fees.
What will the monthly costs be?
Each month you will be responsible for paying:
- your mortgage (if applicable)
- Rent – paid to Your ReSI Home
The monthly rent may include cost for buildings insurance and service charges. Service charges cover the costs of looking after communal areas in your building such as cleaning of shared areas, repairs to the building, gardening and window cleaning.
Each property will have different arrangements – please check your lease for details.
Why can I only purchase my home as leasehold?
All Shared Ownership homes are sold on a long leasehold basis, with your registered provider landlord (ReSI Housing Ltd or ReSI Homes Ltd) in most cases owning the freehold. If you staircase to 100% ownership, the freehold would usually be transferred to you, unless you live in a flat which will remain a leasehold property without the shared ownership provisions.
What is the maximum share I can purchase?
You purchase between 10% and 75% of your home. The maximum share you can purchase will be determined by the affordability assessment which will consider your savings, income and outgoings.
Why do I need to pay a service charge or estate fee?
Service charges may apply if you live in an apartment or where there are costs associated with the upkeep of common areas. They are sometimes called communal costs and can include items like buildings insurance, cleaning of shared areas, repairs to the building, gardening and window cleaning.
Estate charges can apply to houses and apartments. Estate charges relate to the upkeep of the wider estate (for example open spaces and unadopted roads).
Not all developments will have estate charges, however the developer or your solicitor will be able to confirm whether an estate charge applies.
Can I purchase a Shared Ownership home as a buy-to-let property?
You will not be able to purchase a Shared Ownership property if you don’t plan to live in the home yourself.