Part Rent Part Buy
Shared ownership schemes are provided through housing associations. You buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share.
You’ll need to take out a mortgage to pay for your share of the home’s purchase price.
- your household earns £60,000 a year or less
- you’re a first-time buyer (or you used to own a home, but can’t afford to buy one now)
- you rent a council or housing association property
It works in the same way as the general shared ownership scheme, but you can only buy up to 75% of your home. Once you own 75% you won’t have to pay rent on the remaining share.
You can only apply for HOLD if the properties available in the other Help to Buy schemes don’t meet your needs, eg you need a ground-floor property. Your local Help to Buy agent can help you.
The cost of your new share will depend on how much your home is worth when you want to buy the share. If property prices in your area have gone up, you’ll pay more than for your first share. If your home has dropped in value, your new share will be cheaper.
The housing association will get the property valued and let you know the cost of your new share. You’ll have to pay the valuer’s fee.
If you own a share of your home, the housing association has the right to find a buyer for it.