Sounds exciting, right? You might love the idea of Shared Ownership, but before you can enjoy the perks, you need to work out if you are eligible. Looking for guidance? We’ve rounded up everything that you need to know about Shared Ownership eligibility:
Am I eligible for Shared Ownership?
If you want to buy a Shared Ownership home, you need to ensure that you meet the following overarching criteria:
✔ You must be aged 18 or older.
✔ Your annual household income if buying in London must be less than £90,000 (£80,000 outside of London).
✔ You will normally be a first-time buyer or be in the process of selling your home. You must not own any other property at the time you buy your new home.
✔ You should not be able to afford to buy a home on the open market.
✔ You must be able to show you are not in rent or mortgage arrears and demonstrate a good credit history.
Who gets priority for Shared Ownership?
Shared Ownership is available to anyone that meets the eligibility criteria for an available property.
As some of our developments can be very popular and at times, receive more reservations than we have homes available, we use a scoring system to prioritise certain people to ensure that our homes go to those most in need.
On some occasions there may be additional priorities set by the Local Authority which will then override our standard Allocation Policy.
For more information about how we prioritise Shared Ownership homes or Shared Ownership eligibility criteria, speak to our team.
Beyond first-time buyers, Shared Ownership properties are prioritised for military personnel, key workers and people with disabilities.
What kind of homes can I buy using Shared Ownership?
One of the biggest benefits of buying through Shared Ownership is that you get to choose from some of the best quality homes on the market. Most of them are new-build homes that come with the latest in fixtures and appliances. So as well as saving on the home you buy, you’ll also get to enjoy a premium quality of living.
Can I afford Shared Ownership?
Shared Ownership might be a more affordable way to buy a home, but you still need to make sure you pass the affordability checks. Shared Ownership affordability ultimately comes down to what home you go for and your household income. Generally, the monthly cost of your home should be more than 40% of your household income.
When assessing your affordability, don’t forget to consider the added costs of buying a home. Depending on what housing provider you buy with, you could be made to pay additional costs like service charge and ground rent - this could bump up your house price by as much as £4,000. If you think it will be a bit of a squeeze to manage your monthly repayments, it’s best to wait until you are fully ready.
