Low Cost Homeowership (LCHO), also known as Shared Ownership, is an affordable way to step on the property ladder. Typically, you can purchase any share from 25% to 75% of the property funded through a mortgage and/or savings. The Housing Association who owns the remainder of the property will charge a rent which is reviewed annually. In addition to the rent, a service charge will be applicable to each property.
Each year you will have the opportunity to purchase additional shares in your property, this is called "stair casing", until the point when you own your home outright. When additional shares are purchased the rent payable on the outstanding shares, owned by the Housing Association, reduces.
Target purchasers of shared ownership include:
The following is the qualification criteria for shared ownership:
Looking for a shared ownership property?
Shared ownership is an affordable home ownership scheme where you buy a share of a property (between 25% and 75%) and a housing association, like Arches, owns the rest, which you pay rent on.
In order to qualify for a shared ownership property, you must have a household income of under £80,000 per year and one of the following must apply:
After you've lived in your property for a certain amount of time, you can buy further shares in your property (the terms of this will be set out in your lease). For example, if you start out with a 25% share of your property, you can buy another 25%, which would mean you own 50%. This is called staircasing.
You may be able to staircase up to 100% of your property, in which case you would own the property outright and no longer need to pay rent to Arches.
All shared ownership properties are leasehold by default, which means you have an agreement with the landlord to own the property for a certain number of years. When the lease comes to an end, ownership of the property returns to the landlord.
If you buy full shares in your property, you may become freehold, but this varies from property to property.
If you wish to sell your shared ownership property, you will need to approach us in writing to advise us that you want to sell.
You can read the full resales process here.
As a shared owner, your responsibilities will be laid out in your lease.
You will usually be responsible for:
If you have any questions about shared ownership, please give us a call on 0114 228 8100.