Shared Ownership
What is shared ownership?
Shared ownership, also known as ‘part-buy, part-rent,’ is an innovative scheme designed to make homeownership more accessible. Under this scheme, you purchase a share of a home from the landlord, who is typically the local council or a housing association, and pay rent on the remaining share. This allows you to get on the property ladder with a smaller upfront investment compared to buying a home outright.
To finance your share, you will need a mortgage. The share you can purchase typically ranges from 25% to 75% of the home’s full market value. Once you have acquired your share, you will pay a reduced rent on the portion of the property that you do not own, making monthly payments more affordable than renting a property entirely.
Shared ownership is an excellent way for first-time buyers or those with limited savings to enter the property market.
It provides a pathway to full homeownership while offering the security and stability of owning a portion of your home from the outset. One of the significant benefits of shared ownership is the flexibility it offers for future expansion. As your financial situation improves, you have the option to buy additional shares in the property. This process, known as ‘staircasing,’ allows you to gradually increase your ownership stake in the home. You can continue to staircase until you eventually own 100% of the property, at which point you will no longer need to pay rent.
a pathway to full homeownership
Shared ownership provides a pathway to full homeownership while offering the security and stability of owning a portion of your home from the outset. If you’re interested in learning more about shared ownership and how it can work for you, our team at Spherical Financial Services is here to help guide you through the process and find the best options tailored to your needs.