What is Shared Ownership?
Key takeaways
- Shared Ownership is a Government-backed scheme designed to make homeownership more affordable. With Shared Ownership, you can buy a share of the property while paying rent on the remaining portion.
- Shared Ownership has advantages over private renting, as you can choose to staircase. This allows you to increase your shares over time until you reach full ownership.
Searching for a more affordable way to purchase a new build home? Our Shared Ownership schemes could make finding your dream home even easier, with smaller deposit requirements and more affordable monthly payments.
In this blog, we explain what it is, how the scheme works, and why it might be the right fit for you.
How does the Shared Ownership scheme work?
Shared Ownership is a Government-backed scheme designed to make purchasing a home more affordable and accessible. It is available to both first-time buyers and existing homeowners, where you can choose to buy an initial share of your chosen home (usually up to 75%) and pay a subsidised monthly payment on the remaining part.
All the time that you don’t own the home outright, the home will be leasehold. Homebuyers can purchase more shares through a process called ‘staircasing’, which allows you to increase the shares at a pace that is right for you. Once you have bought all shares in your home, the freehold will pass to you as the homeowner.
What are the advantages of Shared Ownership?
Choosing Shared Ownership offers several advantages, especially when compared to private renting:
Affordable upfront costs: You could buy your new home sooner than you think with a smaller deposit and mortgage.
Build equity: Each monthly payment helps you build equity in your home, and you can even choose to buy more shares over time until you own it outright.
Personalise your home: You can enjoy the freedom of making your home truly yours. From decorating and renovating to welcoming pets, you can make it truly your own space.
Is Shared Ownership the right scheme for me?
Shared Ownership is a great option if you have a small deposit. With many Shared Ownership schemes, a low deposit is required (usually 5%), meaning a smaller upfront cost, combined with more affordable mortgage payments. If you’re looking for a solution to take your first steps onto the property ladder or purchase your dream home, this could be the ideal scheme for you.
What Shared Ownership schemes are available?
Across selected Gleeson developments, we offer several Shared Ownership schemes, working in collaboration with trusted providers such as Heylo Housing and Your ReSI Home.
What other support is available to help you purchase your new Gleeson home?
Shared Ownership is just one example of a fantastic, affordable buying scheme available at selected Gleeson developments. With our wide range of schemes and offers, there is support for first-time buyers and home movers, so everyone can purchase their dream new build home, whatever their circumstances.
For more information on the Shared Ownership homes available near you, or other Gleeson homebuying schemes, speak to your Sales Executive at your preferred Gleeson development. You can also read about more reasons to buy a new build home, including energy efficiency, as well as personalising the home to suit your needs.
Shared Ownership FAQs
Do you pay stamp duty on a Shared Ownership home?
Many first-time buyers do not need to pay Stamp Duty (SDLT), subject to the value of the home. However, there may be exemptions when purchasing a Shared Ownership home. Please speak to your Shared Ownership provider or a Gleeson Sales Executive for more information. SDLT may apply when buying Shared Ownership property. You can choose to pay a one-off payment based on market value or in stages. Shares over 80% may require further SDLT.
Who qualifies for Shared Ownership?
First-time buyers and existing homeowners can purchase a Shared Ownership home. However, certain eligibility criteria may apply, subject to the scheme. Please speak to a Gleeson Sales Executive for more information.What are the advantages of Shared Ownership?
One of the biggest advantages of Shared Ownership is the ability to build equity, especially when compared with private renting. You can also own more of your home over time, increasing your shares through a process called “staircasing”.
