FAQs: Shared Ownership

It’s a scheme that allows you to buy a share of a property (e.g., 25%, 50%, 75%) and pay rent on the share you don’t own. You’ll have a lease agreement with the landlord (usually a housing association) for the property.

No – at least not to start with. You’ll own the percentage share you buy. You can increase your ownership over time through a process called ‘staircasing’. When you reach 100% ownership, you may be able to acquire the freehold (for houses) or remain a leaseholder without the shared ownership terms (for flats). See the Staircasing FAQs or speak to your case handler if you’d like to understand more.

As the leaseholder, you are responsible for internal maintenance and repairs. For new builds, there is typically a 10-year repair period where the landlord may cover some structural and essential repairs, or there may be a capped allowance to claim against. Be sure to check with your landlord and refer to your lease.

You will usually pay:

• Rent on the landlord’s share
• A service charge and/or estate charge
• Buildings insurance (included in your lease payments)
• Contents insurance
• Your mortgage (if applicable)
• Utilities

Your rent is reviewed annually. It normally increases based on inflation (either RPI or CPI) plus a fixed percentage (e.g.+0.5%). The lease will detail how this is calculated.

• Gross rent: The amount that would be payable if you were renting 100% of the property.
• Specified rent: The actual amount you pay, based on the share you don’t own.

For structural changes or significant improvements, you’ll need the landlord’s written consent. Some works may also affect your valuation if you staircase later.

If you own less than 100%, you must give the landlord the opportunity to find a buyer first – this is called the ‘first option to buy’. If they don’t find a buyer within the timeframe, you can sell your share on the open market.

This depends on how much of the property you’re buying and how much it’s worth overall. Your solicitor will advise on this based on your personal circumstances.

Yes. When your purchase completes (the day the property officially becomes yours), you’ll usually need to cover rent and apportionments for insurance/service charge from the date of completion until the end of the month and one month in advance — and sometimes for the month after too. These are in addition to your purchase funds and can include:

• Rent (on the share you don’t own)
• Service charge (if applicable)
• Estate charge (if applicable)
• Buildings insurance
• Reserve fund contribution (also known as a ‘sinking fund’) — this is a payment towards a pot of money set aside to help cover future major works or repairs to the building, like replacing the roof or communal facilities.
• Management fee (if applicable)
• Engrossment fee – this is payable to the Housing Association’s Solicitors and will be detailed within your report.
• Mortgage approval fee – This fee may be charged by the Housing Association if you are obtaining a mortgage.

Your solicitor will prepare a completion statement showing exactly what needs to be paid and when. We’ll always go through this with you so that nothing takes you by surprise.