Shared ownership is generally referred to by the Government as ‘homebuy’, but can also be called ‘part buy/ part rent’. Namely, you generally buy a percentage share of a property owned by a housing association and then pay rent on the remaining share that you do not own, hence: ‘part buy/ part rent’. It is possible to buy a small share initially, such as 25%, and gradually buy the remaining shares in the property in a process known as ‘staircasing’. Not all schemes work on this basis and there are a number of variations on the shared ownership theme, such as Open Market home buy, and other ‘shared equity’ schemes where no rent is payable.

If you are just starting to research shared ownership mortgages/ homebuy schemes, and have not yet been accepted by a housing association, then as your first port of call, you need to get yourself a shared ownership agent. They will then be able to tell you whether you qualify for a shared ownership scheme and take you through how to register for a shared ownership scheme in your area.

Once you have been accepted you have to take in consideration a few of the following – The size of deposit, if any, you are putting down – it is possible to buy 100% of a share and there are lenders out there who will consider this (but the lender will normally require your lease to have a special ‘mortgage protection clause). You also need to think about what share you are looking to buy in the property (e.g. 25%, 30%, 50%) and the rent you can afford to pay on the share you do not own (if any).

A few facts to remember when buying shared property are – Shared Ownership Mortgages make buying a home more affordable because you buy part and part rent your home, Homebuy refers to the Government’s range of Shared Ownership Schemes. And your local housing association manage shared ownership schemes in your area.

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