Homes for everyone
We’re here for everyone wanting to buy in London, with spacious homes in locations across the city with flexible finance options. From shared to outright ownership, our wide range of developments means there’s more possibility for more people to keep London on their dream home shortlist. All of our home prices are set by an independent RICS (Royal Institute of Chartered Surveyors) qualified surveyor. Head over to our development pages to take a closer look at our homes.
Smaller mortgage, smaller deposit
Shared Ownership can make buying a home in London more affordable. You buy a percentage of a home (from 25% - 75% of its value) and pay rent on the rest. We’ll own the part of the home you rent, but you have control when it comes to how you want to live, decorate and when you want to move on (no landlords telling you what to do). As you’ll buy a percentage of the home it means you’ll have a smaller mortgage and a smaller deposit to pay, so it can be a great way to take your first step on the property ladder.
You buy a home with a full market value of £310,000
If you buy a 30% share the amount you’ll need a mortgage for is £93,000
If you pay a 10% deposit (£9,300) you’ll need to mortgage the remaining amount of £83,700
You’ll need to pay this equity amount on the day of completion (your solicitor will request the funds from your lender). You’ll also need to pay up to two months’ rent and service charge.
And if your circumstances change you can usually look at buying the whole home known as staircasing.
Helping find the right home for you
To help you make your way through the maze of home options we’ll:
- Advertise the minimum share available, so you get an idea of the most affordable option
- Offer you the highest share you can afford to buy (based on your household income, savings and commitments) so you’re in the best possible position to own more of your home in the future.
Knowing what you can afford
When it comes to Shared Ownership affordability, we assess all applications in the same way; our definition of an affordable share is where the purchase costs no more than 45-50% of your total household income. We work this out including your estimated monthly mortgage repayments, rent and service charge bills - it doesn’t include council tax bills, utility bills or maintaining your home (we recommend saving around £4,000 to cover these costs).
Shared Ownership costs broken down
The costs of buying a home will vary depending on the share you buy, your mortgage and the service charge. But to help you budget we’ve included some examples below and made some assumptions on
- Mortgage: in the examples we’ve used a 30-year repayment (without tax relief) capital and interest mortgage with an interest rate of 5% for the total share amount including your deposit. Your monthly mortgage payments will depend on the mortgage you get and interest rates - to find out more about Shared Ownership mortgages we recommend speaking to one of our specialist financial advisors
- Rent: in the examples we’ve assumed you’re paying 2.75% of the share we own, which is typical for new-build homes but it can vary depending on location. Rent increases every year, usually at a rate of the Retail Price Index plus 0.5%. You can find more details in your lease agreement
- Service charge: your service charge covers the cost of maintaining any communal spaces you have access to and covers buildings insurance and contributions towards a reserve fund for any unexpected major repairs. The first year charges are estimated and in subsequent years are based on actual costs, which are reviewed annually so can increase over time. The charge will vary depending on the size of your home and the facilities - your solicitor will give you a full breakdown during the buying process
Here are two examples (estimates based on different market values and shares) to give you an idea of what your monthly expenditure could be:
Shared Ownership Example one:
Value of home: £270,000
Share you buy: 25%
25% share: £67,500
Estimated mortgage: £359
Service charge: £125
Guidance household income required: £34,172
Share you buy: 50%
50% share: £135,000
Estimated mortgage: £718
Service charge: £125
Guidance household income required: £41, 540
Other monthly costs you’ll need to factor in are utilities and council tax as well as:
- Legal costs
- Mortgage arrangements and survey fees
- Stamp Duty
- Up to two months’ rent and service charge upfront when you complete
You’ll need to consider all of these costs separately when you’re deciding whether or not to buy a home.