What is Shared Ownership?
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:
- First time buyers
- Previous home owners who can't now afford to buy without help
- Housing Association or council tenants
- Serving MOD personnel or those discharged within the past 2 years
Who Qualifies for Shared Ownership
The following is the qualification criteria for Shared Ownership:
- You must have permanent employment
- Your combined household income must be less than £80,000 per annum
- You must be able to access a mortgage and or savings for the share
- The property must be the occupiers sole dwelling
- You must have local connections (may vary scheme to scheme)
- You must be approved by a Local Help to Buy Agent
- There will be an affordable assessment done on receipt of a completed application form
- The purchase should not leave the purchaser with savings in excess of £5,000
- Your income should be sufficient to cover the rent and service charge on the property
- You must be unable to buy a similar type of home, suitable for your family size, on the open market
- You should be a British or EU/EEA citizen, or have indefinite leave to remain
Shared Ownership Properties We Offer
Arches Housing are offering 9 new homes for shared ownership in North-East Derbyshire
Arches Housing are offering 6 new homes for shared ownership at Waverley