Shared ownership is designed so that you don't overstretch yourself financially. It gives you the flexibility to own your own home and increase your share, if you wish, at a time to suit you.
Shared ownership is also known as 'part-buy / part-rent' and is a scheme designed to make home ownership more affordable, with a smaller deposit than is normally required in the open market.
Shared ownership allows you to purchase a share of your home, and buy in stages at a lower initial cost than purchasing outright. As a purchaser you will be buying a percentage of your new home, whilst Shanly Partnership Homes own the remaining balance, on which rent is paid. You will then have the opportunity to purchase more of the property when you wish (known as 'staircasing') until you own 100% (known as 'staircasing out') and you will no longer need to pay rent. In some cases Local Authorities restrict the ability to staircase out to 100%, but this is unusual.
What is the benefit of shared ownership over private renting?
Shared ownership allows you to own part of your own home rather than paying full rent with no return.
How does shared ownership work?
You will be able to buy a share of the property based upon a qualified independent valuers' valuation.
The maximum percentage you can initially purchase will vary from development to development so please speak with our sales team. The percentage is decided by the Local Authority but it is likely to fall within a range of 25-75%. All shared ownership properties are purchased leasehold, irrespective of whether it's a flat or house you are buying. When / if you eventually buy 100% of a house (not a flat) the freehold will be part of the final purchase.
Once the proportion of the property you are purchasing has been decided, you will then be required to pay rent on the remaining percentage following legal completion. For example, if you purchase 35% you will pay rent on the remaining 65% of the property. You will then own a share in the property and have the normal rights and responsibilities of a full home owner.