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What is Shared Ownership?

Shared ownership is where a property is offered for sale on a part buy/part rent basis. You buy a share of the property, usually with a mortgage, and you rent the remaining unsold share from your landlord.

Over time, as you are able to afford to do so, you can buy further shares of the property, this is known as staircasing. You don’t have to staircase if you don’t want to and no time limits are set by Colne for staircasing.

Will I need to arrange a mortgage?

If you need to borrow money to buy your share then you will probably take out a mortgage. You will need to talk to lenders or a mortgage adviser to find out how much you are able to borrow. To check your eligibility please see below eligibility criteria and also register your interest by clicking here. Before you apply please check you are able to obtain a mortgage.

Eligibility criteria: 

Shared ownership is available to first time buyers, and those who are in the process of selling, or have previously owned a home but have since sold. Buyers must be at least 18 years old and unable to buy on the open market. To be eligible for Shared ownership, your maximum household income must not exceed £80,000 per annum (or £90,000 in London). Note that some developments have a local connection requirement, for these, you are required to evidence your connection to the specified area.

Who do I speak to for mortgage advice and will I need a solicitor?

You are free to use a broker of your choice, however, if you are unsure or require assistance, refer to our sales team who will be able to provide you with some advice and/or options.

Will I need any savings?

You will need to allow money for the following:

  • Deposit: usually between 5-15% of the cost of the share you are buying.
  • Reservation Fee: A non-refundable fee of £500 to be paid when you reserve your plot. This will then be taken off the final cost of the share you are buying.
  • Solicitors’ fees: You will need to pay your solicitor for the work they carry out on your behalf. Colne have negotiated a set price with a local solicitor. See above for details.
  • Mortgage arrangement fees: in most cases you are required to pay your broker an arrangement fee for securing a suitable mortgage. 
  • Valuation fee: You may need to pay your lender for a valuation or an administration fee.

Who insures the building?

The company responsible for the communal areas will insure the building, the premium may be paid as part of your service charge or may be separate.

Do I need to insure my contents?

You must arrange your own contents insurance.

How much rent will I need to pay?

The rent you pay will depend on the size of the share that you buy. The larger the share that you buy, the lower the rent will be on the share you don’t own. Colne will charge rent on the unsold share, this is an ‘affordable’ rent.

Will I need to pay a service charge?

You will be required to pay a monthly service charge whether you live in an apartment or a house. Your service charge will include the upkeep of the communal/shared areas; the outside of the building; any private or un-adopted roads; grounds maintenance; buildings insurance; provision for future maintenance.

What does my rent cover and who maintains my property?

Your rent is just rent; it does not include any payment towards maintenance or insurances. If your property is an apartment your lease will state what you are responsible for. Generally in an apartment you are responsible for the maintenance of items inside the property and the management company will be responsible for all external and shared areas. If you are in a house you will be responsible for all repairs to the property and gardens, this will also be detailed in your lease. Owners of both types of property will be responsible for the annual servicing of any gas appliance.

What does Leasehold mean?

Leasehold means that you have a long lease on the property, usually for a term 99 or 125 years. When you sell your share in the property the lease is passed onto the new resident. Usually a flat is leasehold as you don’t own the land the building stands on. A management company will be responsible for the upkeep of the communal areas and the maintenance of the building.

Moving on and selling your property?

When you want to move you have to sell your share of the property. A valuation is required to take place and you can either arrange this yourself or request that our sales team at Iceni arrange for a valuation of your property. This will be completed by independent RICS surveyors and the valuation fee is recharged to yourself. Colne will market your property for the duration of the nomination period (contained within your lease agreement) in hope to find a purchaser as soon as possible. If we are unable to find a buyer, then depending on the terms in your lease, you may then sell the property through an estate agent. Our sales team at Iceni Homes will be able to advise you on this process.


What do I do now?

Please check here that you are eligible and pre-register as early as possible by completing the application form.

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