Shared Ownership is an affordable homeownership scheme designed to help individuals and families step onto the property ladder. It allows buyers to purchase a share of a home (between 10% and 75%) while paying rent on the remaining portion. Zen Housing, a leading provider of affordable homes, offers this scheme across London, the South East, and other regions in England. Below is an easy-to-understand guide to how shared ownership works.
What is Shared Ownership?
Shared Ownership allows you to:
- Purchase between 10% and 75% of a property’s market value.
- Pay a 5% to 10% deposit of the share you’re buying, making it more accessible than traditional home purchases.
- Pay rent on the portion of the property you don’t own at a rate typically set at 2.75% of the unowned share’s value per year.
- Cover additional costs like service charges for communal maintenance.
This scheme is ideal for those with steady incomes but limited savings for a full deposit.
How Does It Work?
Buying your share
You can purchase your initial share with savings or a mortgage. The minimum share starts at 10%, with options to increase your ownership over time through a process called staircasing.
Your monthly payments include mortgage payments for your share, rent on the unowned portion and service charges, which cover communal area maintenance.
Staircasing (Buying More Shares)
Over time, you can buy additional shares in increments as small as 1%, reducing the rent you pay on the unowned portion. You can eventually own up to 100% of the property.
Eligibility
To qualify, your household income must be below £90,000 in London or £80,000 elsewhere in England.
You must be a first-time buyer or someone who cannot afford to buy outright.
Benefits of Shared Ownership with Zen Housing.
- Lower Initial Costs: Start your journey with as little as a 5% deposit of your chosen share.
- Flexibility: Staircase at your own pace until you own 100% of your home.
- Affordable Living: Rent is set at competitive rates, helping you save for future purchases.
- Sustainability: Zen Housing focuses on environmentally friendly designs, such as low-carbon heating systems and energy-efficient homes.
Chilsey Green
Chertsey, Surrey, KT16 9EP
Shared ownership, affordable rent and social rent
Saxon Park
Kettering, Desborough, Northamptonshire, NN14 2WQ
Shared ownership and affordable rent