Shared ownership explained

If you can’t afford all of the deposit and mortgage payments for a home that meets your needs, shared ownership offers you the chance to buy an initial share of a home, normally between 25 per cent and 75 per cent of its market value on a leasehold basis. You'll pay rent to Trent & Dove on the rest. 

This allows you to become a homeowner and take on all the responsibilities and gain all of the benefits that go with owning your own home

You may be able to buy more shares in your home in the future, as and when you can afford to do so. This is known as ‘staircasing’. If you buy more shares, you’ll pay less rent. The amount of rent you pay is based on the size of the share of the home you have not bought.

It is important to seek legal and financial advice to ensure shared ownership is the right option for you.

Frequently asked questions

What size share do I need to buy?

Currently you can buy between 25 per cent and 75 per cent of the property’s value and then pay rent on the portion of the home you don’t yet own

A new shared ownership model is being introduced which will see the minimum level for some properties being reduced to 10 per cent with different lease terms, staircasing rules and repair responsibilities. None of our existing properties are impacted by this change but the impact on properties being delivered in the future will be explained to interested purchasers by our team.

We will always encourage purchasers to purchase the maximum share they can afford after carefully checking the purchase is affordable to you.

What is the eligibility criteria?

To be eligible to purchase a home through shared ownership you'll need to meet the following requirements:

  • Have a combined annual household income under £80,000
  • Be unable to buy a suitable house on the open market
  • Not own a property or part of a property
  • Be over 18 years of age.

Although shared ownership is usually aimed at first time buyers, applications from non-first time buyers may also be considered in some circumstances.

Are there any other costs or fees

As well as paying your monthly rent and mortgage, you may also have to pay a service charge when you purchase through shared ownership, especially when you buy an apartment.

You may also need to pay a reservation fee, which is taken off the final amount on the day you purchase. If you do not buy the home, you will usually not get the fee back.

You will also need to pay solicitors’ fees for arranging the purchase and – depending on your circumstances and the value of the house – stamp duty. Your solicitor will give you a list of buying costs.

Estate charge

For some homes, you’ll need to pay an estate charge. This is to cover the cost of maintaining any communal areas that are not covered by the service charge, such as roads.

Management fee

For some homes, you’ll need to pay a fee to cover our administration costs.

Repairs reserve fund

You may need to pay into a reserve fund (also called a ‘sinking fund’). The fund covers major works, like replacing the roof. Reserve funds usually apply to flats, but some house developments have them.

You can find out how landlords must manage these funds on the Leasehold Advisory Service website. You will not usually be able to get back any money you pay into them. For example, if you move home.

Can I extend the length of my lease

If the remaining lease on your home is too short, it may become difficult to sell or remortgage your home. This can affect the value of your home.

You’ll need your landlord’s permission to extend your lease. We will tell you the rules for shared owners who want to do this and how much you will have to pay.

You can read more about extending a lease on the Leasehold Advisory Service website.

We will always give you tailored key information on a shared ownership property you are considering.

Can I buy additional shares in my home

After one full year’s ownership you will qualify to buy further shares,  “Staircase”, up to the stage where full ownership is achieved, but you can remain a shared owner indefinitely if you want to. Please note that certain schemes do have restrictions on how much of the property you can own. We will be able to provide you details on these schemes.

What are my responsibilities

When you purchase through shared ownership, Trent & Dove Housing will grant you a lease which sets out your rights and responsibilities.

You may want to consider and ask us about responsibilities on repairs, home improvements, decoration and structural changes before you decide if a shared ownership property is right for you.

How can I find out more

Please contact our team on 01283-528528