Shared ownership is a type of home ownership in the UK where a buyer purchases a share of a property and pays rent on the remaining share. This allows individuals to become homeowners who may not be able to afford to buy a property outright.

For example, a buyer may choose to purchase a 25% share of a property and pay rent on the remaining 75%. This means that the buyer only needs to take out a mortgage for 25% of the property’s value, making it more affordable.

The buyer can also choose to purchase additional shares of the property over time, known as “staircasing,” until they own the property outright. This allows buyers to gradually increase their o

wnership and build equity in their home.

Shared ownership is often used as a way to help first-time buyers get onto the property ladder, but it is also available to existing homeowners who want to move but cannot afford to buy a new property outright.

It is important to note that shared ownership is not the same as shared equity, where the buyer takes out a mortgage for the full value of the property and the government or a housing association provides equity to reduce the amount the buyer needs to borrow.

Overall, shared ownership can be a great option for individuals who want to become homeowners but cannot afford to buy a property outright. It allows for flexible and affordable home ownership, and the ability to gradually increase ownership over time.

To find out more and to discuss your options, give us a call or drop us a message.

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