What is shared ownership?

First off, shared ownership doesn’t mean you share your home with anyone! As the name suggests, you buy a share of the property and pay rent on the part that you don’t buy, which will be owned by the landlord.

Who can buy one?

  • If your total household income is less than £80,000 you may be eligible to buy a shared ownership property

  • You are a first time buyer

  • You do not currently own your own home or need to sell your current home, such as a relationship breakdown

  • If your current property becomes unsuitable for your needs and you cannot afford to buy on the open market

  • If you are a serving member of the British Armed Forces,or have been honourably discharged in the last two

  • years, then you may receive priority for buying a home through shared ownership

  • If you are a Key Worker, existing shared owner or renting a housing association or council owned property then you may also be prioritised

  • We cannot sell a shared ownership property to you if you already own a property.

In some circumstances there is a requirement for a local connection. If you reside in the local area, have family and friends who have a local connection, or you are employed in that area this may satisfy the criteria.

What will I own?

You can buy an initial share of between 25% and 75% of a shared ownership property (also known as a leasehold property), which means you will be able to live in your home just as if you owned it outright.

Can I afford one?

  • You will need a financial assessment by Progress Housing Group’s appointed Independent Mortgage Adviser before you will be allowed to reserve a property

  • A smaller deposit and lower monthly payments make it easier to buy your new home, and if you want to, you can buy further shares in the future (called staircasing) until you own it outright

  • If you staircase to 100% ownership, then the property becomes yours and Progress Housing Group have no further interest in the property at this point and there is no rent to pay.

What is included in the shared ownership lease?

Amongst other things, the lease will clearly set out:

  • A description of the property, including its boundaries and which parts are your responsibility

  • The start date of the lease, the share that you have bought, the amount of the rent that you must pay, together with any other payments including management charges and service charges if applicable

  • Your responsibilities as a shared owner, or leaseholder,including repairs and maintenance of the property, and the responsibilities of Progress Housing Group, for example, buildings insurance

  • The method by which you can buy further shares in your home ( known as staircasing) and the method by which you can move home.

What will it cost?

Typically, shared ownership costs less than buying outright, even taking into account the mortgage and rent payable on the part you do not own In addition to your mortgage and rent, you will be expected to pay normal household bills such as utility bills, council tax and contents insurance. Progress Housing Group.will pay the building insurance on the property.

How do I buy one?

If you think you are eligible to purchase a shared ownership home, you can:

  • Contact Progress Housing Group’s appointed local estate agent

Once the properties are available for viewing, you will be invited to have a look at the properties and can apply for a property you’d like to buy in order of preference by completing the Progress Housing Group shared ownership application form

Your details will then be sent to a Progress Housing Group’s appointed Independent Mortgage Adviser for a quick financial assessment, which usually takes a couple of days after you have provided the requested paperwork and information.

If you are approved, you will have the sale agreed to you, subject to contract, on a property on your chosen development, but please be aware that you may not always get your first choice!

Once your offer has been accepted, subject to contract, you will complete a reservation form, identifying who your solicitor is, and the house buying process is then the same as any other house purchase.

At this point you will be asked to pay a reservation fee and you will be given 28 days to exchange contracts.

Can I sell the property?

Yes, you can sell either the same share as you bought, or sell the whole property. By selling the whole property, you may obtain any increased value in the property, if property values have increased since you originally purchased. Please note that if property prices fall, then you would incur a shared loss if you decided to sell - just as if you owned the property outright. As the landlord, Progress Housing Group have the first refusal to buy the property, or the right to find a buyer for the property. If you already own the property outright, you can sell it yourself.