Shared Ownership is an alternative home ownership product for buyers who would like to purchase a property but can’t afford to buy on the open market. Shared Ownership costs are usually lower than other housing options for several reasons:

• The rent is less than the rate charged on the open market and usually charged at 2.75% of the value of the rented share per annum
• With most new developments from 2024, buyers can start with as little as 10% if buying through the updated Shared Ownership model
• Depending on your financial circumstances, a buyer’s deposit will normally be 5-10% of the price of the share, not of the full market value of the whole property
• Stamp Duty Land Tax (SDLT or simply ‘Stamp Duty’) can generally be deferred until your share reaches 80%

Shared Ownership allows you to buy a percentage of a property, paying a mortgage on the share you own and rent to First Garden Cities Homes on the remainder. You will be buying a leasehold house or apartment, and this will be either a new build or resale home.

Shared owners have the option to buy further shares in their home. This is a process known as ‘staircasing’ – and in most cases Shared Owners could staircase all the way to 100%. The price of buying further shares will be based on an independent valuation at the time that you purchase the further share. You can find out more about the process of buying additional shares in this staircasing guide.

There are several eligibility requirements that anyone wishing to buy a Shared Ownership home must meet. The general eligibility criteria for Shared Ownership is as follows:

• Buyers must be at least 18 years old
• Outside of London an annual household income must be less than £80,000
• Shared Ownership purchasers are often first time buyers, but if a buyer already owns another home then they may be considered dependant on their circumstances, and they must have exchanged contracts on their sale
• Buyers should not be able to afford to buy a home suitable for the their housing needs on the open market
• Buyers must show that they are not in mortgage or rent arrears
• Buyers must be able to demonstrate that they have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home
• Buyers should have savings or be able to easily access at least £4,000 to cover the costs of buying a home; this is a guideline figure and the actual amount may vary
• Buyers will also need access to the deposit amount required. For Shared Ownership, this will usually be 5-10% of the equity share you are buying but this will depend on the property and affordability

The location of the Shared Ownership home may also mean there are additional criteria points that need to be met before a buyer can be considered (e.g. rural homes).

A new model lease for the sale of Shared Ownership properties was launched from April 2021 which means the following for buyers purchasing a home through Shared Ownership on most of our latest schemes:

• The minimum initial share buyers are able to purchase has been lowered to 10%, compared to the current 25%
• The introduction of a 10-year repairs and maintenance warranty
• The introduction of longer leases on new build homes
• Buyers will be able to buy additional shares (also known as ‘staircasing’) in 1% increments, compared to the current 10%
• There will be shorter nomination periods for shared owners who are looking to sell their home