1. How does shared ownership work?
You buy a share of the property, usually between 10% and 75% on newer leases, with a mortgage and deposit. You pay rent to the landlord on the share you do not own. You can usually buy more shares later, called staircasing.
In England, your household income must normally be £80,000 or less, or £90,000 or less in London. Your deposit is based on the share you buy, not the full value, and is often 5% to 10% of that share. Our shared ownership mortgages page explains eligibility.
2. What will I really pay each month?
Your monthly cost includes three main parts: the mortgage on your share, rent on the remaining share, and service charges. Add buildings-related costs, council tax and utilities to see the full picture.
- Ask how the rent is calculated and how it rises each year.
- Ask for the service charge breakdown and its history.
- Check for any planned major works or sinking fund contributions.
- Check ground rent, if any.
Lenders assess affordability on all of these costs, not just the mortgage. A low share price can look affordable until rent and charges are added.
Compare the total monthly cost with renting a similar home, and with buying a smaller home outright. Shared ownership is not always the cheapest route each month. Its main benefit is getting onto the ladder with a smaller deposit and mortgage.
3. What does the lease say about repairs?
Shared owners usually hold a lease, even on houses. Under traditional leases, you are often responsible for all repairs, even though you own only part of the home. Newer model leases for new-build homes include an initial period where the landlord helps with some essential repair costs.
Check the lease length too. A short lease can make it harder to remortgage or sell. Your solicitor should explain the key terms, including restrictions on subletting, alterations and pets.
For flats, the service charge also covers shared areas, building insurance and sometimes major works. Ask whether any building safety work, such as cladding remediation, is planned or outstanding. These issues can affect costs, mortgage availability and resale.
4. How does staircasing work, and what does it cost?
Staircasing means buying more shares in your home, which reduces your rent. Each time, the property is usually revalued, and you pay the current market value for the extra share. If values have risen, the extra share costs more.
Each staircasing step has costs, such as valuation and legal fees, and you may need a new mortgage or further advance. Some newer leases allow smaller staircasing steps. Reaching 100% means you own the home outright, sometimes subject to restrictions in certain rural areas.
5. How easy is it to sell?
When you sell, the housing association usually has a nomination period to find a buyer, often eligible for shared ownership. After that, you may be able to sell on the open market. This can take longer than a normal sale.
You sell your share at its current market value. If prices have fallen, you could lose money. Ask about the resale process, any fees and how long the nomination period lasts before you commit.
If you have staircased to 100%, you can usually sell like any other homeowner. This is one reason some buyers plan to increase their share over time, if their income allows.
6. Will lenders lend on my shared ownership home?
Not every lender offers shared ownership mortgages, and criteria vary by housing association and lease. Some lenders only work with certain landlords. A broker can quickly check which lenders accept your property and share size.
Shared ownership mortgages are FCA-regulated residential mortgages. You still need a good credit record and affordable payments. Missing payments could lead to repossession, as with any mortgage.
What about Right to Buy?
Right to Buy lets eligible council tenants buy their home at a discount. Discounts in England were reduced in late 2024, and rules differ elsewhere in the UK. You may have to repay some of the discount if you sell within a set period.
Many mainstream lenders offer Right to Buy mortgages. For first-time buyers comparing options, our first-time buyer mortgages page may also help.
Whichever route you take, ask your solicitor to walk you through the lease before exchange. Understanding your rights and costs from the start avoids surprises later. If you are unsure whether shared ownership or a standard purchase suits you better, a broker can compare both with your real figures.
Shared ownership and Right to Buy mortgagesMortgages for shared ownership, Right to Buy and other affordable home ownership schemes.
Explore shared ownership & rtbFrequently asked questions
Who is eligible for shared ownership?
In England, you usually need a household income of £80,000 or less, or £90,000 or less in London. You must not be able to afford a suitable home on the open market. You are usually a first-time buyer, a former owner who cannot afford to buy now, or an existing shared owner moving.
Can I get a mortgage for shared ownership?
Yes. Many lenders offer shared ownership mortgages, though not all. Criteria vary by lender, share size and housing association. You usually need a deposit of around 5% to 10% of your share, and lenders assess rent and service charges as well as the mortgage.
Do I pay stamp duty on shared ownership?
It depends. You can choose to pay stamp duty on your share only, or on the full market value upfront. First-time buyer relief may apply. The rules are complex, so ask your solicitor which option suits you and use a stamp duty calculator.
Can my rent go up in shared ownership?
Yes. Rent usually rises each year according to a formula set out in your lease, often linked to inflation. Check the formula before you buy. Staircasing to a larger share reduces the rent you pay. Ask the housing association for recent rent increases.
Can I sublet a shared ownership home?
Usually not, without permission from the housing association. Most leases restrict subletting. Some allow it in limited situations, such as a temporary job move. Breaching the lease could put your home at risk. Always ask the housing association in writing before letting any part of the home.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.