New Build
'New Build Shared Ownership is a part-buy/part-rent scheme that enables you to buy a share of a newly built property from a housing association or other housing provider.
Under this scheme you can purchase between a 25% to 75% share in the first instance. The housing provider will hold the remainder of the equity, with a subsidised rent payable on the share you do not own.
The combined monthly costs of the rent and the mortgage will normally be substantially less than buying the property outright.
It is expected that purchasers will maximise the share that they purchase in line with their affordability.
Take an eligibility Self Assessment|
To apply, you need an income of You need to get a mortgage for the value of Value of the unsold equity Get closer to your needs: |
Property equity |
New Build Homebuy enables first move
Like many first time buyers Emma, 28, an accounts assistant from Milton Keynes, was living with her parents in order to save up enough money to purchase her first home. An open market mortgage was not an affordable option as a single purchaser and so shared ownership seemed an ideal solution. “I chose shared ownership because it was the only way that I could get on the property ladder…”
Situated overlooking one of Milton Keynes’ largest lakes, Emma purchased a one bed apartment for a 30% share of its full market value of £140,000, costing her £42,000. Her rent and service charges per month total approximately £300, almost half the rent paid out by those in private rented accommodation in similar Milton Keynes properties. She completed her purchase in the summer of 2008.
Emma says that she has already recommended the benefits of purchasing a shared ownership property to her friends.
…I now have my own space and can come and go as I wish. If it wasn’t for shared ownership I never would have my own place…
| Name | Emma Carey |
|---|---|
| Previous Living Situation | Living with family |
| Scheme | New Build Homebuy |
| Development and/or area | Caldecotte Lakeside, Milton Keynes |
| Housing/scheme | Provider Affinity Sutton Group |
Staircasing - Buying more shares in the property
Once a 'shared owner' you can then usually purchase further shares in your home after 12 months. The additional purchase must usually be at a minimum of 10% of the property value at the time. This is commonly referred to as 'staircasing' and can be continued until you own the property outright. Conditions will normally vary from one housing provider to another.
