Shared Ownership, Stair-casing and Discount Market Sale

What is Shared Ownership?

The scheme allows you to initially purchase a share of a property, which can be between 25% and 75%*. The share you purchase would be funded by a mortgage and cash deposit and is dependent on your level of savings and income. You will then pay subsidised rent on the remaining share; therefore the higher the share you purchase, the less rent you will pay. You should aim to buy as much as you can comfortably afford. Please remember that regardless of your level of share, you will still be a home owner.

How do I find out if I am eligible?

You will be assessed against the criteria for each individual scheme and full details of your finances will be needed.

To be eligible for the Shared Ownership scheme, you generally need to meet the following criteria:

  • Your annual household income can be no more than £80,000.
  • You should be unable to purchase a home suitable for your needs without assistance.
  • You must not have any outstanding credit issues (i.e. unsatisfied defaults or county court judgments).

If you have to borrow money for all or part of your share from a bank or building society, then repayments can vary as interest rates change. We advise that you take independent financial advice in this respect.

What is Staircasing?

After you have purchased your Shared Ownership property, in most cases you can increase the percentage share. This is done in “tranches”, which essentially is the percentage you can increase by. Details of the tranches will be detailed in your lease.

There may be the option to increase your share to 100%, which will also mean you acquire the freehold of the property. Further details on this and the maximum share you can buy, will also be detailed in your lease.

As the share of your property increases, the amount of rent on the property will decrease. If you are able to eventually staircase up to 100%, you will become an outright owner and will no longer need to pay rent. You may still be required to pay any service charge associated with the development.

What is Discounted Market Sale?

Discount Market Sale (DMS) is an affordable home ownership buying option where a new build property is purchased at a discounted price. This discount is usually around 20% (depending on the scheme) and is designed to help low and middle earners get onto the property ladder.

For more information on any of the above, please speak to one of our Sales Executives.

*Please note Share prices and stair-casing options are site and plot specific, with restrictions in some instances. Please speak to our Sales Executives for more information.

Block

For help finding your perfect new home, call our team on 0300 1233 585 or Contact us