What is Shared Ownership?

What is Shared Ownership? 

Shared ownership is a part buy, part rent scheme which can be a stepping stone towards full home ownership. 

Initial share levels are available from 25% (10% on the new model) to 75% subject to affordability. The purchaser will need to raise a mortgage for their share in the property, and will pay an affordable rent on the remaining share.  It is possible to purchase additional shares at a later date, up to and including 100% ownership. This process is known as staircasing. 

Who is eligible? 

Shared Ownership is aimed at assisting people who require housing but are unable to afford to purchase a property outright on the open market.  Applicants must have a household income of less than £80,000, and be otherwise unable to buy a property suitable to their needs on the open market. All shared ownership applicants are subject to eligibility and independent affordability assessments. The assessment will establish the share level that can be purchased and that demonstrate that you can sustain home ownership in the long term. Applicants do not need to be first time buyers, although you must not already own a home to be eligible. 

View a copy of our  Shared Ownership Guide

I’m interested, what’s next? 
 
Firstly, complete an initial application form via www.helptobuyagent1.org.uk. The Help to Buy agent will email you to confirm the approval of your application. 

 Incommunities will receive your approved application directly from the Help to Buy agent and will carry out an affordability assessment. Once approved, Incommunities will contact you to make a suitable appointment to view any remaining properties that meet your needs. 

Properties are allocated on a first come first served basis. 

A £500.00 non refundable reservation fee is required to secure a particular property (this will be deducted from the final amount upon completion). 

Frequently asked questions  

What are the costs?  

Every month you will need to make the following payments: 

• Your rent to Incommunities (calculated at percentage of the unsold share, usually 2.75%). 

• Your mortgage repayment to your mortgage lender. 

• A service charge and management fee for services you receive (collected by Incommunities). 

• Buildings insurance (collected by Incommunities). 

Does my rent pay towards more shares in the property? 

No. 

Will my rent on the unpurchased share increase? 

A rent review is carried out each year in accordance with the increase / decrease of the CPI (Consumer Pricing Index). The adjustments to your rent will become effective from the 1st April each year. 

Are repairs carried out by Incommunities? 

No, the terms of your shared ownership agreement states that owners have full responsibility for repairs and maintenance of their property.  All new build properties have a 10 year build warranty. 

There are recent changes to how Shared Ownership works meaning some repairs are covered on new homes built under the Affordable Homes Programme (AHP) 2021 to 2026. Please speak to your Sales Advisor to find out if your home is within this programme.  

Are the properties insured? 

The building is covered under Incommunities' buildings insurance for which there is an annual fee, you will need to obtain your own contents insurance. 

What happens if my circumstances change and I need to sell my share. Is this possible? 

Yes, you can sell your share in accordance with the terms of the Shared Ownership agreement.