Buying Shares in Shared Ownership Homes: The Practical Guide

If you’ve heard about shared ownership and wonder how buying a share works, you’re in the right spot. It’s not as complicated as it sounds, and you don’t need a finance degree to get started. Below we break down the basics, the steps you’ll take, and the common pitfalls to avoid.

What Does "Buying Shares" Actually Mean?

In a shared‑ownership scheme you purchase a percentage of a property—usually between 25% and 75%—while the housing association or developer owns the rest. You then pay rent on the portion you don’t own and a mortgage on the share you do. Buying a larger share later, called "staircasing," lets you own more of the home over time.

Step‑by‑Step: How to Buy Your First Share

1. Check Eligibility – Most schemes require a household income below a set threshold (often around £80k for a family). You’ll also need a good credit score and a steady job.

2. Find a Property – Use the Florin Court Real Estate Hub to filter listings marked "shared ownership." Look for location, size, and the percentage of the share that’s up for sale.

3. Get a Mortgage Quote – Approach lenders that specialise in shared‑ownership mortgages. They’ll calculate how much you can borrow based on the share you’re buying, not the full market price.

4. Make an Offer – Once you’ve nailed down financing, submit an offer through your agent. The seller (often a housing association) will review it and may negotiate the share percentage.

5. Legal Stuff – Hire a solicitor who knows shared‑ownership contracts. They’ll handle the lease, the mortgage deed, and any stamp duty that applies to the share you’re buying.

6. Move In – After contracts are signed and funds transferred, you’ll get the keys. Remember, you’ll still pay rent on the remaining share, so budget for both mortgage and rent.

That’s the core process. It sounds like a lot, but each step is manageable with the right help.

Tips to Protect Your Investment

Buy a share only if you’re comfortable with the rent‑to‑mortgage balance. Use a budgeting app to track both payments. Consider staircasing when your finances improve—each extra percent you own reduces the rent you owe.

Also, watch out for hidden fees: administration costs, service charges, and possible resale fees if you decide to sell later. Ask your solicitor to itemise these before you sign.

Finally, treat the share like any other property. Keep up with maintenance, stay on top of council tax, and stay in good standing with the housing association. Good relationships can make staircasing smoother and resale easier.

Buying shares in a shared‑ownership home can be a smart way to get onto the property ladder without paying full market price. With clear steps, solid financing, and a bit of diligence, you’ll be on your way to owning a bigger piece of your dream home.