Shared Ownership FAQs

Shared Ownership Frequently Asked Questions

Do I qualify for Shared Ownership? 

In order to purchase a Shared Ownership home, certain eligibility requirements must be met. Shared Ownership has the following general eligibility criteria:

• Age requirement: 18 years or older
• A household income of less than £80,000 outside of London (£90,000 within London) is required.
• You do not own a home.
• A Memorandum of Sale is required if you already own another property (in the UK or elsewhere).
• A house suitable for your housing needs cannot be purchased on the open market.
• A good credit history is required (no bad debts or County Court Judgments) and the ability to afford the regular payments and costs associated with home ownership.

What am I responsible for? 

As a shared owner, you're responsible for paying your mortgage, rent and service charge on time each month. For keeping the property in good condition and to repair anything you're not happy with. If you've purchased a house, you are responsible for the repairs and maintenance inside and outside. If you're living in an apartment, you're responsible for the repairs and maintenance of the inside of the apartment and you will contribute to a service charge for the upkeep of the external and communal areas of the building.

Do I have to buy the 40% share advertised? 

Generally, our new developments are advertised from 40%, however some of our Shared Ownership properties can be purchased from 10% on the New Model Shared Ownership but this can vary by development.

The share you purchase is determined by the affordability assessment carried out taking into consideration the property price, your income and any monthly outgoings. Applicants are offered the highest affordable share (based on household income, savings and any outgoing commitments such as credit cards, loans and childcare costs).

Please ask us for further details.

What deposit do I need?

You will need a sufficient deposit to pay towards the share of the property you are purchasing. Usually, a minimum of 5% of your share purchase is required but this will be dependent on your financial position. Your Mortgage Advisor will be able to advise you on this.

Emh do not accept 100% mortgages.

Am I buying Leasehold or Freehold

All homes sold through Shared Ownership are Leasehold. In most cases once you’ve purchased 100% of the property, it will become Freehold. However, apartments will remain Leasehold.

Who do I share with?

Shared Ownership is a term used to describe the relationship between you and emh. You will not be asked to share the property with anyone.

Can I decorate?

Yes, you can decorate. You don’t need anyone’s permission to hang pictures, strip the hallway, or paint every room a different colour. But knocking down walls or any other structural changes will need emh’s permission before you do so. Of course, any improvements you make to the property will be considered when you want to sell as it could increase its value.

Do I have to pay Stamp Duty?

When purchasing a new Shared Ownership property, you can pay stamp duty land tax (SDLT) on either the full market value or on the share percentage you are buying. Your solicitor will be able to advise you more on this.

Can I sublet?

Subletting is not permitted under your Shared Ownership lease. You can have a lodger, or a friend stay but you will need to let emh know first.

What is staircasing?

Staircasing’ is a term that refers to increasing the share of the property you own. You can do it gradually over time if you want to, leading to full ownership (in most cases, but this is dependent on the lease, please ask us if you are unsure).

When you buy more shares, you will also be reducing how much rent you pay. Staircasing is a way for you to purchase more shares of your Shared Ownership home.