Explaining Shared Ownership


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Those having a difficult time breaking onto the property ladder could consider Shared Ownership. We explain what it is and if it might be the right option for you.

What is Shared Ownership?

Shared Ownership is where an individual would purchase a share of a property, usually between 25 -75% of its value, using a deposit and mortgage and then paying the rest of the remaining share as rent. These are known as leasehold properties, which allow you to own the lease on them for an agreed period of time – usually 99 years. A service charge will also need to be paid; this is typically charged on a monthly basis.

Am I eligible for it?

To qualify for Shared Ownership, you need to hold an income of less than £80,000 per annum if you live outside London and £90,000 for those living inside London.

You’re also required to be at least one of:

  • A first time buyer
  • A previous homeowner who can’t afford to buy another property
  • An existing shared owner seeking a move


  • Enhanced security: you won’t run the risk of having a landlord suddenly end your tenancy.
  • Improved credit rating: although there may be a temporary drop, paying off a mortgage over will have a long term positive effect on your credit score.
  • A foot on the property ladder: the best thing about this scheme is that it gets you a step closer to owning a property outright.

Does shared ownership sound like a viable option for you? Let us know your thoughts on Twitter @felicityjlord!