Shared Ownership Mortgages

eligibility considerations staircasing selling

Introduced by the government, the shared ownership scheme is designed to help families on lower incomes on to the property ladder.

Shared ownership homes are provided through a housing association. You can buy a share from 25% to 75%, and then pay rent on the remaining share.

Shared ownership eligibility

Eligibility varies with each local housing association selling the property.

To purchase a shared ownership home your maximum household income must be less than £80,000 or less than £90,000 in London.

If you are self-employed you must be able to show 3 years accounts.

Shared ownership is only available to first-time buyers and will be required to complete an affordability test pass credit history checks.

You should be in need of a shared ownership home, ie. You are unable to buy a home of suitable needs in the normal way.

You should have savings or access to at least £4000 to cover the costs of buying home.

Shared ownership Mortgages

Arranging a mortgage is the same as any other mortgage, although the market is limited as not all lenders offer shared ownership mortgages.

It is worth contacting us to research all available products on offer including Fixed and Discounted rates.

Important considerations

The deposit you pay is based on the mortgaged amount. So if the property is valued at £150,000 and you are buying a 50% share; you will need 5% of £75,000 = £3,750. For a 25% share you will need £1,875

You can choose to pay Stamp Duty Land Tax (SDLT) on the full property value to or you can choose to pay based on the share that you are buying. If you choose the latter please review the details on the HMRC website. You would only consider paying stamp duty on the full amount if you were considering staircasing (slowly increasing you share to eventually own the property).

You will need to instruct a solicitor and pay all the usual fees when purchasing a home.

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Staircasing is the term used to increase your share of the home. Each time to increase you will need to have the property valued and instruct a solicitor. If you have not paid the full SDLT you may be required to pay again on the increased share. You will be required to pay all costs involved.


You will need to contact your Housing association to discuss selling your share. Even if you own 100% of the home the housing associate have first refusal to buy back the home for 21 years after you gained 100% ownership.

You will be asked to contact a surveyor to value your home and will need to pay for the valuation before proceeding.