What is shared ownership?
Shared ownership is the affordable way to get your foot on the property ladder without the restrictions of the large deposit requirements of outright sales.
Shared ownership enables you to purchase a share in a home and pay a discounted rent to Brighter Places on the part you don’t own.
It also provides you with the freedom to purchase more equity (called Staircasing) when you can afford it, so eventually you could own your home outright.
- You can usually buy between 25% and 75%.
- The minimum share for brand new leases changed to 10% minimum from April 2021.
With shared ownership you can buy:
- A newly built home, or
- An existing home through a housing association resale programme.
Purchasers need a mortgage to pay for their share of the home’s purchase price, or to fund this through savings.
Shared ownership properties are always leasehold.
Who can apply for shared ownership?
To be eligible for shared ownership, you must:
- Earn less than £80,000 annual household income
- Have a deposit and funds ready for your mortgage and moving costs
- Not be able to afford to purchase a similar property that suits your needs on the open market
- Be an existing shared owner looking to move
- Not currently own or have an interest in another property
- Be registered with Help to Buy
How to apply - follow these steps
Step 1: Check you are eligible
Register with Help to Buy
Once you have expressed your interest in a property via Help To Buy South, you will need to have a financial assessment carried out by an Independent Financial Advisor (IFA). We will send you details of Independent Financial Advisors on our panel so you can contact them in order to start the assessment process.
Step 2: Complete an assessment
Once your chosen independent financial advisor (IFA) has completed your assessment they will forward it across to us at Brighter Places, based on this information we will then approve or decline your application
Step 3: Offer and reservation
- If your financial assessment is successful Brighter Places will formally offer you the property.
- Brighter Places will get in touch with you and send you any relevant documents to sign and return along with details on how to pay your reservation fee.
- You will then need to choose your solicitor to act on your behalf through the purchasing process. When we offer you the property you will need to provide us with details of your chosen solicitor.
Step 4: Apply for your mortgage
- If you are purchasing a property using a mortgage you will need to instruct your financial advisor to apply to your lender.
- Your lender will carry out a mortgage valuation and from there you will be provided with your mortgage offer. You will need to send your mortgage valuation and mortgage offer to Brighter Places who will need to approve this in line with your shared ownership lease.
Step 5: Exchange of contracts
- Once Brighter Places has approved your mortgage offer, your solicitors will ask you to sign your contracts and agree the date that you would like to complete.
- You will now need to pay your deposit.
Step 6: Completion and moving in
- Your solicitor will advise you when the monies have gone through and you have legally completed on the purchase of your new home. As soon as you complete you will be handed the keys to the property and you can move into your new home.
Selling your shared ownership home
Read our page on all you need to do to prepare to sell and to find a buyer for your shared ownership home.
How to increase your share
Shared ownership is designed so you can buy a share in your home and increase your share if you want to. Find out how this works.