Shared Ownership, Staircasing and Discount Market Sale

What is Shared Ownership?

The shared ownership scheme is an affordable way for you to buy a home, if the usual means of purchasing a home on the open market is out of reach. The scheme allows you to purchase a share of your new home, which can be between 25% and 75%* of the total property value. The share you purchase would be funded by a mortgage and cash deposit and is dependent on your savings and household income. You will then pay subsidised rent on the remaining share; therefore the higher the share of your home 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 own your new home.

How do I find out if I am eligible for shared ownership with Beech Grove Homes?

We work in partnership with our sister brand, Sanctuary Homes, to deliver brand new shared ownership homes on some of our developments in England.

To find out if you are eligible to purchase via shared ownership, you will need to be assessed against the criteria for each individual scheme. As part of this assessment, full details of your finances will be needed to assess what is suitable for you.

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

  • Your annual household income can be no more than £80,000 (for shared ownership in London, no more than £90,000).
  • 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, through a shared ownership mortgage, then bear in mind that repayments can vary as interest rates change. We advise that you take independent financial advice in this respect and ensure that you will be able to meet the repayments required.

We are proud to be supporting the National Housing Federation's shared ownership campaign, to raise the profile of part buying, part renting as an option to purchase your own home. More information can be found on the NHF shared ownership website.

What is Staircasing?

After you have purchased an initial share of your shared ownership home, in most cases you can increase the percentage share. This is done in “tranches”, which are increments you can increase by. Details of the tranches will be contained within your lease agreement.

Depending on where you purchase your shared ownership home, 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 the maximum share you can buy will be detailed in your lease.

As the share of your property that you own increases, the amount of rent you pay on the property will decrease. If you are able to staircase up to 100% ownership, 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.

More information on staircasing can be found on our Sanctuary Homes website.

What is Discounted Market Sale?

Discount Market Sale (DMS) is an affordable home buying option, allowing you to buy your new build home 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. DMS is available on some of our developments, and is offered through our sister company, Sanctuary Homes.

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

*Please note that available share prices,  staircasing and DMS options are site and plot specific, with restrictions in some instances. Please contact one of our Sales Executives for more information.

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