What is a Shared Ownership Resale property?
Resale properties are homes that a current owner bought through Shared Ownership and now wishes to sell. The principle is the same as buying a new-build through Shared Ownership but you must purchase at least the share that the seller currently owns. For example, if the current owner has Staircased to 40% ownership, then you will need to buy at least the same share value.
Within new build developments, Shared Ownership is sometimes only available to people living or working in the borough where they are looking to buy. Whilst some resale properties may have local authority restrictions, they are less frequent, which makes moving to a new area easy to do.
We often sell our new build properties ‘off-plan’, i.e. before they are finished. With Resale homes, you can view the exact property you are looking to buy and move into an area where the neighbours are already settled and there is a more established community, great if you need to borrow some sugar!
You can view our Find a Home page to see the resale Share Ownership homes that Peabody offers in London and the home counties.
What are the benefits of buying a Resale home?
There are a number of benefits to buying a Resale home through Shared Ownership.
-
Own your home
You will own part of the value of your home, rather than paying rent with no return.
-
Smaller Deposit
Like Shared Ownership, you will often need a much smaller deposit compared to buying on the open market.
-
Affordable monthly payments
Your monthly mortgage and rent can work out cheaper than buying outright, and often not much more than renting.
-
Buy more shares
You can buy more shares (Staircasing) or sell your share and move if you want to in the future.
-
See your home
You are not buying off-plan meaning you can view the exact home as it is and may have been improved by the current home owner.
-
Sense of community
You may be joining a more established community compared to moving into a new development.
Who can buy a Resale property?
Resale homes have the same eligibility as new-build Shared Ownership homes:
✔ 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.
*Eligibility may vary depending on property size and whether there are any criteria imposed by the local authority.
Buying a Resale home with Peabody New Homes
Shared Ownership Resales are part of the part buy/part rent scheme, which is partly funded by the government and aims to help first-time buyers.
Shared Ownership properties are designed as a stepping stone towards completely owning your own home, allowing you to buy as much as you can afford. Buying a Resale property makes you an owner-occupier, not a part tenant, and you'll need to buy at least the current owner’s share on the existing lease.
Your lease is a legal document that proves you own part of your home and sets out certain conditions including how often your rent and service charge is reviewed, and the rules for selling or buying further shares, and your rights and responsibilities as owner-occupier.
As you own the lease on your property you will become a ‘leaseholder’ and also the ‘landlord’; and will have the same rights and responsibilities as a full owner-occupier.
If you decide to buy the remaining share of your home by 'Staircasing', you will own your home outright and pay no rent on it. If you own a house, your solicitor will arrange for you to get the freehold (in most circumstances) like any other house owner. If you own an apartment, you’ll remain a leaseholder like any other apartment owner. This is because if your home is in a block of apartments, your lease sets out responsibilities for use and maintenance to all shared areas.
To explore what’s currently available, you can browse all of our resale Shared Ownership homes on our Find a Home page.
Frequently asked questions about Shared Ownership resales
A Shared Ownership resale is a pre‑owned Shared Ownership home that the current owner has bought previously and is now selling on.
The key difference is that, unlike a new-build where you usually start with a set minimum share (often around 25%), with a resale you must buy at least the share the seller currently owns.
Resales also allow you to view the exact home you’ll be buying.
Resale properties require an independent RICS valuation, arranged to determine the current market value of the home.
This valuation sets the price of the seller’s share, and you then purchase at least that share percentage. The valuation ensures the sale price reflects the fair market value at the time of purchase.
Yes - you can usually get a mortgage for a resale home in the same way you would for a new-build Shared Ownership property.
The lender will assess affordability based on the share you're buying and the rent payable on the remaining share.
Buying a resale has similar costs to buying any Shared Ownership property. These include:
- Deposit (based on the share you’re purchasing)
- Mortgage arrangement fees and valuation fees
- Solicitor’s fees
- Reservation fee (around £500)
- Monthly costs once you move in: Mortgage repayments (on the share), Rent on the unowned share, and Service charges and ground rent (if applicable).
You can view our page on Shared Ownership costs for more information.
Homeowner Stories
Discover a collection of homeowner stories from previous Peabody New Homes purchasers and find out how we were able to help them onto the property ladder and find their dream home through Shared Ownership.
"It feels amazing to be paying my own mortgage instead of someone else’s. I also plan to staircase in the future to increase my ownership share. Never in my wildest dreams did I imagine owning such an incredible property in such a perfect location - but here I am."
"Shared Ownership isn’t something that exists in Italy. I was able to buy a 50% share and find somewhere to call my own."
"We plan to staircase. When we staircase to 100% at The Lanes, we will even own the freehold of the property - something I didn’t think would be possible a few months ago!"