What is Shared Ownership?

Shared Ownership is a housing scheme which has been designed to help homebuyers who are unable to afford the cost of buying a property outright on the open market. It is governed by the Greater London Authority in London and the Homes and Communities Agency outside of London.

  • How Does Shared Ownership Work?
    Shared ownership schemes work by enabling homebuyers to purchase a share in a new home and pay a subsidised rent to the Housing Association on the remaining share along with a monthly service charge.
  • More About Affordable Housing
    • Affordable homes are purchased on a leasehold basis and the lease is normally 125 years.
    • Home Buyers will own an equity share in the property, anything from 25% to 75% dependent on what is being offered by the vendor and financial assessment has deemed the buyer as being able to afford.
    • Financial ability is assessed by an independent financial advisor and homebuyers are required to buy up to their maximum affordability – there is no charge for the assessment.
    • Additional shares in the property can be purchased at any time; this process is known as staircasing. The price is always taken from the market value at that time which is determined by an RICS Surveyor.
    • Properties can be sold at any time. The housing association will normally have a 12 week period in which to find another person to purchase the property under the shared ownership scheme, however if they are unable to find a buyer, after that time the property can be sold on the open market – again the value is determined by and RICS Surveyor.
  • Am I Eligible for Shared Ownership?

    In order to qualify for shared ownership applicants must fulfil the following requirements as stipulated under the terms of the scheme:

    • The homebuyers household income in London needs to fall below £71,000 for one and two bedroom properties & below £85,000 for three bedrooms. For outside of London annual household income should be no more than £60,000. Every property will have a minimum income level too, determined by it's value, rent and service charge costs.
    • Access to a minimum deposit of 5% of the share being purchased.
    • Be employed on a permanent contract and have passed any probation or be able to provide three years audited accounts if self-employed.
    • British, EU or EEA Citizenship or have indefinite leave to remain.
    • £5000 towards legal fees, mortgage arrangement fees and stamp duty.
  • About Affordable Homes
    Each development will have an eligibility criteria and this can be based on the area in which applicants currently live or work and the type of accommodation currently occupied.
  • How can Red Loft Help?
    Red Loft sell properties on behalf of various shared ownership providers and can advise when eligible properties become available. For further information or to register your affordable home requirements, please contact a member of the Red Loft on 0844 225 3071 or sales@redloft.co.uk.


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Paul and Daniel