Am I Eligible for Shared Ownership?

What is Shared Ownership? 

Shared Ownership is a government scheme that allows first time buyers and those that may not be able to afford a full deposit to get onto the property ladder.

The idea is that you only buy a portion of the property – for example, 20%. This means that you won’t need to save as much of a deposit.

You then pay mortgage repayments on the part of the property that you own and reduced rent on the part you don’t, which is usually owned by a housing association.  
Read more in our guide to Shared Ownership. 

Am I eligible for Shared Ownership? 

To be eligible for shared ownership you must: 

• Be at least 18 years old. 

• Have a household income of less than £80k (£90k if buying in London). There is no set minimum income, but the housing association might have their own lower threshold. Bear in mind that any money from benefits will not be counted towards your household income. 

• Although you don’t necessarily need to be a First Time Buyer, you can’t own another home at the same time. If you do, you’ll need to show that it’s up for sale and that it’s unsuitable for your current needs. It must be sold by the time you exchange contracts on your new home. 

• Be unable to buy a home that suits your needs without the help of a scheme. 

• Be able to demonstrate that you’re not in mortgage or rent arrears. 

• Have a good credit score, and you must be able to show that you can afford the regular payments and costs that will be involved (e.g. rent, mortgage payments, service charge). 

• Have access to a specified sum of money in order to pay legal fees – the exact amount will vary but will usually be around £4k. 

You must meet all the above criteria. The housing association might also have some additional conditions – you should ask them or the estate agent if you’re not sure. 

Affordable homes programme eligibility

As of April 2021, many rental homes delivered through the new Affordable Homes Programme also have a right to shared ownership. Though tenants in these homes must meet certain eligibility requirements to qualify to become shared owners.

To be eligible they must:

• Have lived in the property for at least 12 months & been a social tenant for at least 3 years.
• Have a maximum household income of £80,000 or less (£90,000 in London).
• Be required to undertake an affordability assessment to prove they can afford to own a home.
• Not be going through bankruptcy proceedings

Am I eligible for Shared Ownership if I’m self-employed? 

If you’re self-employed, you’ll need to show at least three years of your accounts to prove that you’re a safe option for Shared Ownership.
If your income varies considerably, it might be a good idea to seek financial advice before borrowing money or committing to owning a home. 

Am I eligible for Shared Ownership if I’m retired? 

If you meet the requirements, then you will be able to purchase a Shared Ownership home if you are retired.
If you are over 55 you may be eligible for the Older Persons Shared Ownership scheme (OPSO).  

Is Shared Ownership right for me? 

Being eligible is one thing, but you also need to think about whether the scheme is the right option for you. If you’re only able to save up a small deposit but you want the security of owning your own home, then it could be perfect.

If you’re looking for a property you can customise, or if you don’t want to commit to living in a property long-term, there might be a better option. Talking to a property solicitor can help you better understand your options.

Our list of the pros and cons of Shared Ownership can help you decide whether the scheme is right for you.  
Working out whether you’re eligible is the first step. If you’re not eligible, don’t worry – there are lots of other government schemes that you might be able to use to purchase your new home.

​Shared Ownership eligibility FAQs

Is it hard to get a mortgage for Shared Ownership with bad credit?

If you are eligible for Shared Ownership and have bad credit then it is not completely impossible to get approved, but it will be more difficult than if you have a good credit score.
Your lender may ask you to make a larger deposit than usual for a Shared Ownership property to cover the risk.

How much of a deposit do I need for Shared Ownership?

Typically, with Shared Ownership you will need a 5%-10% deposit of the price of the share that you are purchasing.

How long does the Shared Ownership process take? 

The Shared Ownership process will usually take around 1-3 months to be completed. It is usually quite a quick process compared to some other property sales because there is no property chain.

Can I rent out my Shared Ownership property?

In certain situations you may be allowed to rent out your property purchased on the scheme, however you will have to get permission from your Housing Association/Landlord