Shared Ownership

This simply means that a tenant can share the ownership of a property with Lincs Rural.

Shared ownership can help to get that ‘first step on the property ladder’, acquiring a share in a home that is affordable, based on its market value. This can be as low as 25% to start, with the opportunity to increase in the future.  The first step is to get a  mortgage or use savings to buy the first share.

The costs of buying are also kept low as  the deposit and legal fees are based on the price of the share, not on the home’s full value.

Lincs Rural owns the remaining share of the home, on which an affordable rent is paid. Generally the total  rent and mortgage payments is less than a similar home purchased outright or rented privately.

A shared owner has the right to buy further shares in the home when affordable – this is called ‘Stair-casing’.

How many shares can be purchased?

In most cases additional shares  up to 80% ownership of the home. This is to help keep sufficient affordable housing in the area. The lease will detail how many shares can  be purchased. The minimum purchase of share is 10%, but it is usually not cost-effective to buy less than a 25% share.

Additional shares can be purchased at any time, if rent and any service charges are up to date, and the  increased mortgage payments are affordable.

Am I eligible?

To be eligible for a shared ownership property, your annual household income can be no more than £80,000 and applicants must be registered with Home Buy Register.

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