Shared ownership is a part-buy, part-rent scheme for people who can’t afford to buy a home outright with a commercially available mortgage.
It is a way to buy a share in a home with the option to buy more shares in the future or buy it outright whenever you can afford to. The property can be a new build development, or an existing home being sold through the share ownership resale scheme.
On developments where shared ownership is on offer, you’ll need a minimum level of income/savings depending on the value of the home you want to buy.
Purchasers can buy an initial share of their home worth between 10% and 75% of its market value, and then pay rent on the remaining share owned by the Housing Association.
You may to take out a mortgage to pay for your share of the purchase price, however this will be a smaller mortgage and deposit than you would have needed if you were buying the property outright.
Full property price (example of 50% ownership)
| 5% deposit | 45% mortgage | 50% landlord share |
|---|
| You |
Bank/Building Society |
Registered Provider/Housing Association |
Important Notice - Shared ownership schemes in Wigan Borough are administered by various housing associations or registered providers of social housing.
Who can apply?
You can buy a shared ownership home if:
- Your household earns £80,000 a year or less
- You do not own any other property/ are in the process of selling their current home
- The property must be used as the owner’s main home and not rented out throughout the ownership.
To be eligible for the scheme, one of the following must also be true:
- You are a first-time buyer
- You used to own a home, but it is no longer affordable to buy one now
- You are forming a new household (E.g. after a relationship breakdown)
- You currently own a property under this scheme and want to move
- You are a homeowner needing to move but cannot afford a home that meets your needs.
Does shared ownership cost more than renting?
It often works out cheaper than renting privately and your monthly payment contributes to paying off your mortgage.
- You can voluntarily buy more shares in your home after you become the owner, this is commonly called staircasing
- As you buy more shares your rent will decrease
- On most Shared Ownership homes, you can buy shares of 10% or more at any time, with some newer schemes allowing you to purchase 5% or more
- It is important to note an independent valuation will be required when purchasing any additional shares
- Any shares you wish to purchase will need to be bought within 3 months of the valuation date.
Can I make home improvements?
There are things to consider when planning improvements of a Shared Ownership Home:
- You are entitled to paint and decorate your shared ownership home without consulting your landlord
- You may need written approval from your landlord on any structural changes or improvements
- It is important to check your agreement before starting any adaptation which could affect the fabric of the building.
Can I sell my shared ownership home?
You can decide to sell your Shared Ownership home at any point:
- Before you sell your home, you must notify your landlord
- The landlord then has a ‘nomination period’ meaning they have a short period of time (usually in the region of 4-12 weeks) to find a buyer or purchase back your share
- If the landlord does not find a buyer within this period, you are then entitled to sell your share yourself on the open market.
Will I be able to own 100% of my shared ownership home?
You can voluntarily buy more shares in your home after you become the owner, this is commonly called staircasing.
As you buy more shares your rent will decrease. On most Shared Ownership homes, you can buy shares of 10% or more at any time, with some newer schemes allowing you to purchase 5% or more.
It is important to note an independent valuation will be required when purchasing any additional shares. Any shares you wish to purchase will need to be bought within 3 months of the valuation date.
Who may have priority?
Depending on your chosen scheme and register provider some may give priorities to certain groups. We recommend discussing any interest with the registered provider for your chosen scheme to ensure you meet their eligibility criteria.
What homes are available?
Our list of properties to buy indicates whether they are available as shared ownership. You apply directly to the shared ownership scheme provider, therefore do not fill in the online application form for Wigan Council.
For more information about providers, visit our Affordable home providers webpage.
Your Housing Group Case Study - Waterside Point, Leigh
Watch the video below of a new resident to Waterside Point is 25-year-old Chloe, who was able to buy her own home through using shared ownership.