About the Shared Ownership Scheme
If you are struggling to afford to buy a home outright, we can offer you the opportunity to get on the housing ladder through shared ownership. Shared Ownership is a Government–funded scheme that allows you to buy a share in a new home – usually between 25-75% of the property’s value depending on what you can afford. The remaining share is owned by Broadacres and you will pay reduced rent on that share. When you can afford to, it is possible to purchase larger shares of the property, in some cases the full 100%.
How it works
It can be an affordable alternative to renting or buying on the open market. You don’t need to raise a deposit based on the total value of the property, just for the share you are buying. This means that you don’t have to apply for a full mortgage, which may increase the chance of being accepted by a Bank or a Building Society.
You can buy a newly-built home or one through a re-sales programme. All shared ownership properties will be leasehold.
Important information about shared ownership
Who qualifies for shared ownership?
You should be eligible if:
- Your household earns less than £80,000 per year
- You are unable to afford to buy a home outright on the open market
- You are over 18 and living in the UK
- You are able to obtain a mortgage to cover the purchase price of the sale
- Your income is sufficient to cover the mortgage,rent and service charges
- You have savings (or access to) to cover the fees of buying your property plus your deposit
Frequently asked questions
Which homes are available on Shared Ownership?
This will depend on schemes available at the time. To view which properties are currently available, use our Property Search on the Broadacres website.
What size property can I buy?
You can apply for any size property, but priority may be given to households whose size is more suitable for the property. So a couple with children may get priority over a single buyer for a three bedroom home.
How are properties allocated?
Applications from the following groups are welcomed:
- Housing association and council tenants
- First time buyers
- Members of the armed forces
- Local priorities, i.e. those who live or work in the local area, or have immediate family living in the area
What are the costs involved with buying?
To buy you will need to be able to cover the cost of the mortgage valuation or survey, legal fees, and stamp duty (if applicable). In most cases you would pay a mortgage deposit, on top of the £3,500 to £4,500 needed to cover the costs of buying. The amount of the deposit required will depend on your mortgage provider, the terms of the mortgage and your credit rating.
For more information on buying one of our properties please contact our Sales Team by using the Sales Enquiry Form.
A deposit of £250 is also payable to Broadacres at the time of reserving the property.
Every month, you will need to make the following payments:
- Your mortgage repayment, to your mortgage lender
- Your rent, which you pay to Broadacres, based on the share of equity that you buy
- If you buy a flat (or house on an estate with shared areas) you will also pay a service charge for maintenance and upkeep of the common areas
How much rent will I pay?
- We charge 2.75% on the value of the percentage you don’t own
- So for example, if the full value is £200,000 and you purchase a 25% share , this would cost £50,000
- The rent will be 2.75% on £150,000 (the value you don’t own) = £4125 for the year or £79.32 per week
Who is responsible for repairs and maintenance?
As the homeowner, regardless of the share you have purchased, it is your responsibility to repair and maintain your new home, including all repairs to heating systems. New homes often come with a guarantee that will cover defects for the first year after it was built – this usually only covers defects in the builder’s workmanship.
Shared ownership process
- Find a property on our website – click here
- Complete our Low Cost Home Ownership application form – download here
- When we receive your application an assessment will be completed on your finances, connection to the local area and if you qualify for the scheme.
- If your application is successful, we will then explain the next steps and arrange a viewing of the property