Shared Ownership is an alternative way to secure a new build home.
Shared Ownership is a buying scheme that allows you to purchase a share of a property and pay rent on the rest.
What is Shared Ownership?
Have you considered shared ownership as a way to buy a new build home? If you’re looking to find out more about the scheme, this guide tells you everything you need to know.
1. How does shared ownership work?
Shared Ownership is a great option for first-time buyers looking to buy a new build home, without a hefty upfront payment. With the Shared Ownership scheme, buyers can purchase 25-75% of a home’s market value and pay a reduced rent on the remaining share (calculated at 2.75% per annum).
You must provide a minimum 5% deposit for the share you wish to purchase. As you progress, you can buy additional shares, and once you reach 100%, the property transitions from leasehold to freehold. Having an agreement or mortgage in principle doesn't guarantee approval; you still need to submit a valid application.
2. What is a shared ownership mortgage?
Similar to buying any other home, you may need to apply for a mortgage. Not all lenders offer shared ownership mortgages, so you’ll need to find a suitable provider.
Deposit rates may vary depending on the lender, but a 5% minimum deposit is standard. You can use our Mortgage Calculator to estimate how much you can afford and the monthly mortgage payments for your dream home.
3. Who is eligible for shared ownership?
Eligibility criteria for the shared ownership scheme varies by provider and the property.
Key requirements include:
• Your household yearly income must be below £80,000
• You currently do not own a home
• You must be at least 18 years of age
• You must have proof you’re not in mortgage or rental arrears
• You have a good credit history
• You’re not able to purchase a home suitable for your needs on the open market
4. Other considerations for first time buyers
When buying a home for the first time, you’ll need to consider other financial costs and potential charges, such as stamp duty, solicitor fees and moving costs.
5. Shared ownership with Tilia Homes
If you’re interested in buying one of our new build homes, then you can do so using our shared ownership initiatives.
Our partnerships with Sage Homes and Heylo, offer part-buy-part-rent opportunities through their Home Stepper and Home Reach schemes, respectively.
Buy a new home with Shared Ownership
If you have any questions about shared ownership or want to know more about our offers, please get in touch.