1. What is Shared Ownership and how does it work?
Shared Ownership lets you buy a percentage of a home and pay a mortgage on that share, while paying subsidised rent on the rest. Because you’re buying a smaller share, your deposit and mortgage are lower, making homeownership more accessible.
2. Why is Shared Ownership more affordable than buying outright
You only need a deposit and mortgage for the share you buy. If you purchase 30% of a £310,000 home, you’re buying £93,000 — not the full value — which means a smaller deposit and a smaller mortgage.
3. Who can apply for Shared Ownership in London?
You’re eligible if:
- You’re 18 or over
- You don’t currently own a home (or will sell before buying)
- Your household income is under £90,000
- You can show the home is affordable long‑term
4. What monthly payments will I have with Shared Ownership?
You’ll usually have three main monthly costs:
- Mortgage on the share you own
- Rent on the share we own
- Service charge for communal maintenance and buildings insurance
Rent increases annually on 1 April, and service charges are reviewed each year.
5. What does the service charge cover?
Service charges typically include:
- Cleaning and maintenance of communal areas
- Communal lighting and grounds care
- Lift servicing and entry systems
- Buildings insurance
- Management fees and reserve fund contributions
6. How do you work out what I can afford?
Your combined mortgage, rent and service charge must be no more than 45–50% of your household income after tax. This ensures your home is financially sustainable.
7. What might my monthly costs look like?
Here’s a simple example for a £270,000 home:
- 25% share: around £948 a month (mortgage + rent + service charge)
- 50% share: around £1,153 a month
Actual costs depend on your mortgage product, interest rates and the development.
8. What other costs should I budget for?
Alongside your monthly payments, you’ll need to plan for:
- Legal fees
- Mortgage arrangement and survey costs
- Stamp Duty (if applicable)
- Utilities and council tax
- Up to two months’ rent and service charge at completion
9. What is staircasing and can I buy more of my home later?
Yes, staircasing lets you buy more shares over time. As your share increases, your rent decreases. At 100% ownership, you no longer pay rent.
10. What do I need to apply for Shared Ownership?
You’ll need:
- Recent payslips
- Bank statements
- SA302s and accounts if you’re self‑employed
- Details of your savings, income and financial commitments
11. What happens at exchange and completion?
Exchange is when the sale becomes legally binding, you sign contracts and pay 5% of the purchase price.
Completion is when the remaining funds are transferred, the sale finalises and you get your keys. If you’re buying off‑plan, you’ll receive an estimated completion date and a long‑stop date.