Shared Ownership

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Shared ownership is a government scheme that lets you buy a share of a property and pay rent on the remaining portion to the housing association or private developer that owns the building. It’s designed to help people who can’t afford the full purchase price of a home.

But the scheme is complicated, comes with additional costs and restrictions and there are a number of pitfalls you need to be aware of.

Shared ownership works by making the cost of home ownership more affordable because you only buy a share of a property (10%-75%). This means you need a smaller mortgage and deposit. In addition to that, stamp duty can generally be deferred until you increase your share of the property to 80%.

Shared Ownership example

How does shared ownership work? Say you buy a 25% share of a £400,000 property. This means your share is worth £100,000. For example: