Shared Ownership

Shared Ownership

Shared ownership is  a government backed scheme which enables first time buyers to get on to the property ladder by buying part of a house or flat and renting the other part from a Housing Association or other provider. Most buyers acquire a minimum of 25% but some buy 75% at the outset. They normally fund this purchase partly from their own resources or with a mortgage from a bank or building society.

Staircasing

Staircasing is a buyer moving from, say, 25% to 50%. The property is revalued and the buyer pays the current market price for the additional 25%. The rent to the Housing Association decreases by the same percentage. It is possible to staircase in minimum amounts of 10% but most people use 25% increases or larger.

Most shared ownership schemes allow staircasing up to 100% when the property becomes fully owned by the buyers. There are some schemes, mainly in rural areas, where the amount of staircasing is limited to 75% or 80% so the buyers can never fully own the property. This usually designed to ensure that the homes remain available for people drawn from the local area and in housing need.

At Wright Hassall we are very experienced in dealing with these schemes and can help you through the process of buying initially or staircasing at a later stage. Please contact a member of our team for more information.