Buying a home can feel out of reach, especially with rising property prices and high deposits. That’s where shared ownership comes in. This government-backed scheme offers a more accessible route onto the property ladder, particularly for first-time buyers.
But is it the right choice for you? In this article, we break down what shared ownership is, how it works, and explore the key pros and cons with insight from the legal team at GLP Solicitors.
What is Shared Ownership?
Shared ownership allows you to buy a portion of a property, typically between 25% and 75%, and pay subsidised rent on the remaining share, which is owned by a housing association or developer.
Over time, you can increase your ownership share through a process called staircasing. Once you reach 100%, you fully own the property.
How does Shared Ownership work?
Here’s a simple overview of the shared ownership process:
- You buy a share of a leasehold property (e.g. 40%)
- You pay rent on the remaining share to the housing provider
- You live in the property as your main home
- You can staircase by buying additional shares later
Note: Shared ownership applies to leasehold properties, so lease terms and service charges will also apply.
The Pros of Shared Ownership
Lower deposit and entry cost
Because you’re only buying a share, your deposit and mortgage are based on a percentage of the full value.
A stepping stone to full ownership
Staircasing gives you the flexibility to increase your ownership over time, depending on your financial circumstances.
Government support
Shared ownership is part of the Affordable Homes Programme, making it a safer and more regulated option for first-time buyers.
Ideal for key workers and low-income buyers
Eligibility often includes NHS staff, teachers, and others priced out of full homeownership.
The Cons of Shared Ownership
You still pay rent
You’ll have a mortgage and rent to cover which can sometimes equal or exceed the cost of a traditional mortgage.
Restrictions on selling
You may be required to sell your share back to the housing provider before marketing it on the open market.
Leasehold costs
Service charges, ground rent, and leasehold rules can add complexity and extra expense.
Staircasing costs add up
Every time you increase your share, you’ll need legal services, valuations, and possibly additional fees.
Why legal support is essential
Shared ownership agreements involve unique legal considerations. At GLP Solicitors, we offer tailored legal services to help you understand and navigate the process from reviewing lease agreements to staircasing or selling your share.
Our legal services include:
- Conveyancing for shared ownership properties
- Lease review and negotiation
- Liaising with housing associations
- Legal support for staircasing or lease extension
Explore our full residential property services.
Is shared ownership right for you?
If you’re struggling to afford a home through traditional routes, shared ownership can be a smart, flexible alternative. But it’s not a one-size-fits-all solution.
Getting trusted legal advice can help you weigh the pros and cons and make the right choice for your future.
Get in touch with GLP Solicitors
Need help with a shared ownership purchase or sale? Our experienced property team is here to provide clear, practical legal support every step of the way. Click here for a free initial consultation.