Shared Ownership means that you pay a mortgage on a share of your home’s full market value and a subsidised rent on the remainder. It is designed so that both your mortgage deposit and your monthly housing costs will be lower than if you bought the same home outright. You can increase the share that you own as and when you can afford to.
Anyone who cannot afford to buy a suitable home on the open market is eligiable for Shared Ownership, but you will need to meet a minimum household income requirement (this is calculated on an individual basis), and must be able to pay for your mortgage valuation survey, legal fees and stamp duty (when applicable). A deposit is normally required. We can help you to find a lender and solicitor with low cost home ownership housing experience.
Each month, you will pay off some of the mortgage on the proportion of the home you are buying, and pay us a specified rent on the remainder owned by the housing trust. When you can afford to, you can buy more of your home or even own it outright, at the same price it is worth at the time that you buy an additional share.
How it Works:
- We’ll help you work out how much of your new home you can afford to buy and how much you’ll rent – our price list sets out the income and savings requirements to buy through Shared Ownership.
- You’ll then arrange a mortgage for the amount you’ve decided to buy, including any deposit required by your mortgage lender. We can provide details of Specialist Financial Advisors who are experienced in Shared Ownership and who can help you finding the best mortgage for you. You’ll also need to cover your moving and legal costs.
- Once you’ve moved in, you’ll make monthly mortgage payments to your lender and monthly rental and service charge payments to Metropolitan.
- When you can afford to, you can start staircasing. The cost of any additional shares you buy will be based on your home’s market value at that time.
- You can staircase until you own your home outright, when you will no longer need to pay rent.
- Get on the property ladder sooner You’ll need a smaller mortgage, so you can buy with a lower deposit.
- Save money Your monthly housing costs will be lower than if you were to buy the same home outright on the open market or rent it privately.
- Increase your share over time. You can buy a further share in your home as and when you can afford to, reducing the amount of rent you have to pay. This is known as ‘staircasing’.