A buyers guide to Shared Ownership properties



Reading time: 2 Minutes

Shared ownership schemes are designed as a form of low cost, affordable homeownership, whereby purchases obtain a share of a property-usually between 25-75% -often a new build property.

As an Estate Agent, we are often asked to sell such properties for vendors and here is a guide for prospective buyers to answer the questions we are often asked:

Who is it for?

It is designed for FIRST TIME BUYERS to take the first step on the property ladder, and a criteria includes:

  • The buyers single/joint household income does not exceed £60000 per year.
  • The buyers do not own another property so not available to investors.
  • In some circumstances, divorcees may apply
  • Housing association or council tenants

How do I fund it?

Mortgages are available as normal for shared ownership properties (subject to usual credit referencing and lender terms), and the Governments recent implementation of the help-to-buy mortgage guarantee does apply with most housing associations.

You will pay a subsidised rate of rent to the housing association on the share of the property that you don’t own. The rent is calculated on the value or the property, the higher the share purchased the lower the rent payable to housing association becomes. These costs are separate to any mortgage re-payments and service charge costs for leasehold properties.

Can I buy a bigger share?

Yes, further percentages will be able to purchase-called “staircasing” (under each housing associations terms), usually after a set period of occupation. You can continue to staircase until you own the property 100%.

The cost of further shares are determined by up to date valuations at each relevant time of applying for further share.

How will I sell the property at a later date?

As the price of the property increases or decreases so does the share you own! The housing association involved will have terms to remarket the property on your behalf as well as contacting your local Estate agent to see if they have a database of buyers for you.

Call us at James Laurence Estate Agents with further questions on 0121 604 4060 and check out the latest shared ownership properties we have available at www.jameslaurenceuk.com

Similar Posts

The people we've helped
  • 5 star review  We recently switched from another letting agency to James Laurence, as we found their team so warm and friendly and loved the local aspect of the agency. The team have absolutely exceeded our expectations, making the changeover feel so seamless and finding new tenants for our apartment at really short notice. Lotti could not have been more wonderful to work with, going completely above and beyond to ensure our tenants could move in just before Christmas. We felt an immediate affinity with her and have so appreciated her attention to detail, quick thinking and creativity. She has made us feel so at ease, supported and like our property is in the safest of hands. Charlotte and Melissa have also been so helpful and lovely to deal with during the process. Having worked with several other agencies in Birmingham, I cannot recommend James Laurence highly enough. Look no further, they are the best!

    thumb Julia Collins Andreu
    12/28/2022
  • 5 star review  The team at James Laurence was very helpful when I tried to find an apartment in Birmingham. I was in contact with a different letting agency but things fell through and they couldn't help me. A colleague of mine recommended James Laurence Lettings so I emailed them immediately since I was was moving from Sweden and the move would take place in less than a week. The team at James Laurence responded within 5 minutes and managed to offer me a few different apartment-options. Things proceeded quickly and smoothly and just a few days later I had they keys to the apartment. James Laurence helped me every step of the way and went above and beyond to accommodate my requests. The only minor negative thing I can say is that the interntal communication could be improved a tiny bit. I received slightly different information depending on who I was speaking with at the time. When I said I received different information earlier the person I spoke to said she would talk to her colleagues and then get in contact with me later with the "correct" information which she did and the issue got solved very quick.

    thumb Elias
    10/15/2022
  • 5 star review  Our experience with James Laurence Estate Agents was absolutely fantastic! Melissa Wilson made the application and referencing process smooth and easy with excellent communication. Everyone we spoke with from the office was kind, helpful, and welcoming. To top it all off, the loft we moved into was even better than the pictures! We are thrilled with our new home and we would absolutely recommend James Laurence to anyone looking for a place to live!

    thumb Dominic James
    10/02/2022
  • 5 star review  I have been very impressed with James Laurence, who have recently sold my property. Having previously had a poor experience with Purple Bricks, I instructed James Laurence to help sell my property. I have worked with Henry throughout the whole process and have found him to be very professional and knowledgeable as well as being efficient. It can't be stressed enough how important this is to have an estate agent that responds quickly, negotiates well and truly understands the market (especially during uncertain times like recently with the cover pandemic). I have briefly worked with Caroline and some of the other team members who also seem to be very efficient and friendly. Thanks again to James Laurence who I would fully recommend to anyone looking to Buy/Sell in Birmingham.

    thumb David Jolly
    6/16/2022
  • 5 star review  I recently sold my property with James Laurence, and the overall experience was great. They demonstrated a good knowledge of the Birmingham property market when discussing sales strategy, marketing and pricing (more than I was expecting) towards the beginning of my experience with them. This showed when we achieved 2 asking price offers within the first couple days of showings. Once an offer was accepted, their support did not stop there, Caroline (Sales Progression) did a fantastic job at liaising between myself and the buyers side, helping to progress items and remove any potential blockers. I would fully recommend James Laurence to anyone looking to Buy/Sell in Birmingham.

    thumb Jack Darby
    5/20/2022