Applying for Shared Ownership

With house prices consistently on the rise, it’s now harder than ever to get your foot on the property ladder. Shared Ownership is a great home ownership alternative to buying a home outright.

What is a Shared Ownership home?

A Shared Ownership home does what it says on the tin, you own a 25, 50% or 75% share of your home, depending on what your circumstances permit. The remaining share is then owned by a housing provider, typically a housing association. In Open Door’s Shared Ownership properties cases’, Halton Housing owns the remaining share of the property that you do not own.

Shared Ownership, contrary to popular belief (maybe because of it’s name) does not mean you will live with somebody who owns the remaining share of the home that you do not own.

What about if I want to own more than 50% of my home?

If you can only afford to buy a 50% share in your home when you find your perfect home, don’t worry, the option to staircase is always on offer to you. Staircasing allows you, when your circumstances permit and when it’s financially viable for you to increase the percentage of your home that you own. You can request to own more of your home after you have bought your initial 50% share at any time, you simply have to be approved for the finances (increase your mortgage loan) and let Open Door know you are wanting to do this. 

What are the benefits of buying a Shared Ownership home?

There are many benefits to buying a Shared Ownership home. Firstly, it’s a great way to get on to the property ladder. As you will only need a mortgage for 50% of the value of your new home, it makes it a lot more affordable and realistic for young or first-time buyers to obtain a home. Due to the amount you will have to lend being reduced (as you will only own at least 50% of the home) you can usually get a mortgage with a lower deposit, typically you will be able to get a mortgage with a 5% deposit for Shared Ownership properties.

Another great benefit which comes with opting for Shared Ownership is that you can staircase how much of your property you own. This means you can start by owning a 50% share and over time, if your circumstances allow and you feel comfortable doing so, you can request to own 75% of your home and eventually, 100% of your home.

To work out if you could be eligible for a Shared Ownership home, use our Open Door Eligibility Calculator.

To browse Open Door’s new build Shared Ownership homes for sale, visit the Latest Developments page.