Shared Ownership Homes
Shared Ownership offers new homes for sale on a part-buy/part-rent basis. The scheme is designed for first time buyers who are unable to buy a property on the open market.
How does it work?
You buy a share of a new home (minimum of 25%, maximum of 75%), and pay rent on the remaining share to Rowan Homes.
The share you purchase will need to be funded by a mortgage, which you will need to arrange with a bank or building society. An independent financial advisor will be able to advise you on which mortgage is best for you and how much you should expect to pay.
Rowan Homes can provide you with a list of independent financial advisers on request.
Rents are subject to an annual rent review and will increase in line with any proportionate increases in the retail price index (RPI).
Who is responsible for the repairs and maintenance of my home?
If you live in a house, you are responsible for the maintenance to your home.
If you live in a flat, you are responsible for the maintenance inside your home. Rowan Homes will be responsible for any repairs and maintenance outside your home and this will be charged to you through a service charge.
Your responsibilities will be fully explained in your shared ownership lease. Your solicitor should explain this in detail with you before you buy.
Buying more shares
You can buy further shares in your home until you eventually own the property outright. This is known as staircasing. When you are in a position to staircase, you will need to let us know your intentions to do so. The price of the additional share is based on the full open market value of the property at the time of purchasing.
Of course, you are under no obligation to buy further shares and can remain as a shared owner, paying rent and mortgage on a long-term basis.
If you decide to buy the property outright, no rent will be payable. If the property is a house, you will be able to obtain the freehold from us.
What if I want to sell?
Once you have informed us of your decision to sell, and to ensure that your home is made available to others who are unable to buy outright, we will have the right to buy your share back from you and offer it to those with a low-cost home ownership need. If after 12 weeks we have not found a suitable buyer, you may buy the remaining share from us or offer your share of the property on the open market. Please note the buyer must be approved by Rowan Homes.
The price you sell your equity is based on the current market value of the property. The valuer must be approved by the Royal Institute of Chartered Surveyors. You will have to meet the cost of this valuation.
You will benefit from any increase in value that has built up on the share that you own, but if the value of the property has decreased, you may have to sell at a price less than you originally paid.
Am I eligible for Shared Ownership?
- You are a first time buyer, or previous home owner;
- You live or work in the same county as the property, or can demonstrate that you have a local connection;
- You have a household income of less than £60,000 a year;
- You are unable to buy a suitable property on the open market;
- You have the minimum income required to purchase the property;
- You have been in a permanent job for at least six months, or if you are self-employed, you must be able to present two years' audited accounts.
If you're applying for a Shared Ownership home you will also need to have:
- Savings of at least £2,000 to cover the legal costs of purchasing a property;
- Income capable of supporting a mortgage for at least 25% of the property value, or savings with which to purchase the share outright
You must not be named on the title deeds of any other property when purchasing a Shared Ownership property.
Please note: this list is not exhaustive. Some shared ownership properties have their own list for eligibility.
Are there any priorities for assistance?
The priorities for assistance can be summarised as follows:
- Existing social housing tenant;
- Serving MOD personnel and the highest locally determined priority group;
- Those that will address housing problems in local and regional housing markets as defined by the Local Authority;
- First-time buyer unable to buy a home without assistance;
- Previous homeowner or owner-occupier going through a relationship breakdown (where the property is being sold or transferred to a sole name).
Interested in Shared Ownership?
To register your interest and for further information on how you can benefit from the Shared Ownership scheme, please contact the Rowan Homes on 0800 0644 555 or email firstname.lastname@example.org
Are you registered for Help to Buy?
Before we can consider you for one of our shared ownership properties, the local Help to Buy agent will need to assess your eligibility for the scheme.
Help to Buy agents we currently work with are:
Hertfordshire - Lea Valley Homes www.leavalleyhomes.co.uk
Bedfordshire - Orbit www.orbithomebuyagents.co.uk
Useful Budget Planner
If you're trying to get to grips with your finances, it's always best to do a budget – but very easy to miss off important expenses or even income. Remember to include everything in your monthly budget, even if you only have a bill once a year!
Budget planner (.PDF - 1.1MB)
- provided by Homefocus Magazine