Shared ownership – New Build

Under this scheme, the purchaser initially buys between 25% to 75% of the newly built home provided by a housing association (or other provider). The purchaser will also pay rent on the part of the property that is not owned.

You purchase a share of a property with a conventional mortgage.

You become a leaseholder, the freehold of the building is usually owned by a Housing Association.

You pay subsidised rent to the Housing Association on the share you do not own, also a monthly service charge.

Initially, the minimum share that can usually be purchased is 25% of the value of the property. The maximum share that you can buy initially is 75%.

The combined monthly cost of the rental payment and the mortgage is less than you would pay for an open market.

Purchase or rental you have the option of buying additional shares in the property at a later date (known as staircasing).