Redefine possible with a Shared Ownership home through RHP

19th October 2017

Home ownership, in this area?  That’s impossible

Ah, but it’s not!

Shared Ownership helps people who’re unable to afford to buy a home outright because they can’t afford a full mortgage, the deposit, or both. You buy a share in the property and pay rent on the remainder.

What kind of property can I buy through Shared Ownership?

Properties come from two sources; homes being sold by existing homeowners (pre-loved) and new properties built by RHP. They may be new purpose built or renovated flats or houses.

So, how does it work then?

The size of the share you initially buy will be at least 25% of the value of the property and the minimum share you are expected to buy will depend on your income and savings. You’ll pay rent on the share you don’t own.
Shared Ownership properties can be bought as a brand new home or pre-loved. If you buy a pre-owned property, known as resale, you will buy the share (or more) owned by the current owner. 

You can buy further shares in the property later if you wish. You will not pay rent once you own 100% of your home although you may still have service charges and ground rent to pay.

A new home is bought on a lease, which will usually be 99 to 125 years.

Sounds great but am I eligible?

If you are looking to buy in a London Borough you must not currently own a property and must earn enough to fund the share you purchase, most probably with a mortgage.  You’ll also need sufficient savings to cover the cost of buying your share of the home and the deposit.

The specific eligibility criteria depends on where you are looking to buy. Across London you must not earn more than £90k per year. However, some Local Authorities set different priorities which mean you must already live or work, or both, in that borough to be eligible to buy shared ownership.

Different Local Authorities may also set income thresholds at lower levels. The details of any specific criteria will be given in the property details of all homes available for sale.

We recommend your next step is to register with Homes for Londoners– the official London wide portal.