What is Shared Ownership?
Shared Ownership with Sanctuary is a great option for anyone looking to get a foot on the property ladder, even if you’re not able to afford to buy your own property outright.
The Shared Ownership scheme enables buyers to purchase a share of the value of their home, usually between 25% to 75% (but can be a minimum of 10%) of the value of the property, then pay a subsidised rent on the remaining portion.
Buying a share your home means you need a much smaller mortgage and deposit than if you were buying the property outright.
For example, in some cases your deposit can be 5% of the price of the share, not the whole property. Also, Stamp duty land tax (SDLT) can generally be deferred until your share reaches 80%. For more information on this, please contact us.
Can I buy more shares?
Yes, when you can afford to, you can increase your share and buy your home in stages – a process known as staircasing. The cost of your new share will depend on how much your home is worth when you want to buy the share.
For example:
- If the property prices in your area have increased since you bought your home, the share price will increase.
- Equally if property prices in your area have decreased since you bought your home, the share price will decrease.
Sanctuary will be able to get your property valued and let you know the cost of your new share. Other fees may be payable.
After a qualifying period of owning your new home, there may be the option to buy your property outright.
Regardless of the size of the share you buy, with Shared Ownership you will own a stake in your own home. Shared Ownership is a fantastic way to get that first foot on the property ladder.
Read more about Shared Ownership and how we’re working with the National Housing Federation to make the scheme more accessible to buyers. You can find more information on our staircasing page.
Can I sell my Shared Ownership home?
Yes, if you own less than 100% share of your home, Sanctuary can, in some instances, buy your home back. Sanctuary may also be able to find a buyer for your home.
Once you own the full 100% share, you can sell the property yourself.
Contact us for further information about selling your Shared Ownership home.
Am I eligible for Shared Ownership?
To be eligible for the Shared Ownership scheme, you generally need to meet the following criteria:
- You must be at least 18 years old.
- Your annual household income can be no more than £80,000 (£90,000 in London).
- You should be unable to purchase a home suitable for your needs without assistance.
- You cannot be a current homeowner (or be named on the deeds of another property).
- You must not have any outstanding credit issues (i.e. unsatisfied defaults or county court judgments).
How do I apply?
If you meet the above criteria, you will need to complete a shared ownership application form (434 KB) so we can ensure you are fully eligible.
Alternatively, you can get in contact with us for further advice.