Homebuy (shared ownership)

The following information answers questions that are frequently asked about shared ownership.

What is shared ownership?

Shared ownership is a way to buy your home in stages by buying a share of the property and usually renting the rest. The freehold interest may be held by the Council, or a housing association (also known as Registered Social Landlords or RSLs). In time, you may wish to increase the share you own and eventually, you may be able to buy your home outright.

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Who is shared ownership for?

Shared ownership is for people who want to buy a home of their own but can't afford to pay the full price straight away. For people on the Housing Register who can afford it, shared ownership may be the way the Council helps them solve their housing need.

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What schemes are available?

There are several schemes available including Open Market Homebuy and New Build Homebuy. More information can be found on the Homebuy website and the Housing Corporation website. 

  • New build Homebuy - this scheme allows you to share ownership of a newly-built housing association property. You are expected to buy a 40% share of the property, with either a mortgage or savings and pay rent on the remainder to the housing association. Over time, you will have the opportunity to buy a greater share of the property.

  •  My Choice Homebuy -  this is one of two New Open Market Homebuy schemes  available and is offered by Thames Valley Housing Association (TVHA). It provides a loan of up to 50% of the funding needed to buy a property. The applicant must arrange their own mortgage through an Independent Financial Advisor (IFA) or through a bank or building society. Additional fees include a 1.5% rate of interest on the loan, which is increased by the Retail Price Index +1 each year. For more information on this scheme, call  0845 600 6699 or visit www.homebuy4u.co.uk

  • Own Home - another New Open Market Homebuy scheme and is provided by Places For People (PFP). This scheme offers up to 40% towards the cost of a property. Mortgages can only be obtained from The Co-Operative Bank and there is a 1.75% charge per year on the loan after five years and this increases to 3.75% in year 11. For more information on this scheme, telephone 0845 607 0110 or visit www.ownhome.co.uk

  • Key Worker Homebuy - this scheme is exclusively for key workers as defined by the Department of Communities and Local Government. Eligible applicants choose their property and get up to £50,000 towards the purchase price in the form of an interest free loan. Thames Valley Housing Association are administering the scheme throughout Surrey and can be contacted on 0845 600 6699.
  • Re-sales - when existing shared owners wish to move on, a clause in their lease allows Thames Valley Housing Association to nominate a new owner from a register of interested applicants. For more information on re-sales please contact Thames Valley Housing Association 0845 600 6699.
  • Council shared ownership - previously the Council operated its own shared ownership scheme and occasionally existing properties come up for re-sale. You buy a minimum of 25% with mortgage or savings and then pay a subsidised rent to the Council for the remaining share. This scheme is usually offered to those on Hometrak who could not afford other shared ownership schemes.

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How much do I need to earn to be considered for shared ownership?

This depends on the value of the property, whether you have any capital to invest and how much rental and service charge is payable. Generally on new build schemes, single people need an income of £19,000+, couples £23,000+ and families £25,000+. These are just rough guidelines and can change quickly as prices vary.

Council buy-back properties are often older than new build properties or housing association re-sales and therefore they tend to have a lower property value. The rental element also tends to be lower, and you can buy in at a minimum of 25%. Where possible Council buy-backs are used for applicants for whom this would be the only affordable shared ownership option.

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How much does shared ownership cost?

Before you decide to buy a property using one of the shared ownership schemes, you must consider the following costs:

  1. Initial Costs: you will need to have between £3,000 and £4,000 for:
    • legal fees
    • building society valuation                 
    • deposit (if required)
    • insurance
    • stamp duty
    • removals.
  2. Long term commitments: you will need to be able to afford the following each month:
    • mortgage repayments
    • maintenance and repair costs
    • rent
    • Council Tax
    • water rates
    • service charge (if applicable)
    • buildings and contents insurance
    • all utility bills.

Example of Monthly costs 

40% purchase of a £180,000 2 bedroom flat
Mortgage £430
Rent £300
Service Charge £30
£760 per calendar month

Your responsibility will be the same as those of any home owner. You will be responsible for repairs and maintenance and for decoration. If your property is a flat there will be a service charge to pay for the maintenance of common parts.

Other costs you should consider are:

  • mortgage: the mortgage contract is between you and your mortgage provider. If you fall behind with payments let them know. If financial difficulties cannot be overcome, it is possible that you could lose your home. Many mortgage providers offer mortgage protection plans in the event of redundancy. It is worth looking into this option when taking out your mortgage.
  • rent and service charges: your landlord can take action under the lease if you fail to keep up with these payments. This could also mean losing your home.

If you get into difficulties please contact Housing Options for advice on 01483 743834.

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What size property can I buy?

You can buy up to one bedroom above what you currently require. Houses are offered to families first, in line with the Council's allocation policy.

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How do I get on the list?

The list for people who are interested in a shared ownership scheme is the same Housing Register used for all other offers of assistance from the Council.

 You must register with the Council and with the local Zone Agent for this area (Thames Valley Housing Association). An on-line application form is available or you can contact Thames Valley Housing Association on 0845 600 6699.

As with all offers of accommodation there is no real way of knowing how long you will have to wait for a suitable property. The Council can not predict when we will get re-sales or buy-backs as these depend on people wanting to sell back their shares.

The Council knows when new developments will be ready but does not know the income levels people need until nearer the time they are ready.

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How are properties allocated?

Shared ownership opportunities are allocated to people registered on both the Council's Housing Register and with Thames Valley Housing Association (the local zone agent for this area), in priority band order, from a pool of applicants with the required income or above. It is therefore important for applicants to keep their Housing Register and Thames Valley Housing Association application updated with new income details.

Applicants who are already Council or housing association tenants get preference for shared ownership because they will be freeing up a rented property. These applicants will be assisted ahead of others on the Housing Register.

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I'm a key worker, what schemes are available to me?

The following options are available to key workers:

1) Key Worker Living

Thames Valley Housing Association is the zone agent for the Key Worker Living Programme, a government funded programme to assist key workers to buy or rent a property.

As the zone agent, Thames Valley Housing Association is responsible for providing affordable housing options to over 700 public sector key workers over the next two years. Thames Valley Housing Association will be the single point of contact for key workers in Surrey, Berkshire and Hampshire for NHS staff, Police Officers, teachers, health workers, Social Workers and some other public sector workers.

The Key Worker Living Programme is available to support recruitment for key public sector job roles within the following groups in Woking:

  • NHS Health workers - clinical front line staff.
  • Teachers in publicly funded schools and further education establishments.
  • Probation Service Staff, Police Officers, Prison Service Staff.
  • Social Workers, Occupational Therapists and Educational Psychologists employed by local authorities.

The options available are:

  1. A loan of up to £50,000 to help buy a property.
  2. Shared ownership on new build properties - buying a share with a subsidised rent payable on the remaining share.

Visit the Key Worker Living website to find out more about the options available to you and download an application form or contact Thames Valley Housing Association on 0845 600 6699 to request an application form.

2) Woking Borough Council key worker policy

The criteria for Key Worker Living is subject to change, and if your professional status is not included in one of the Key Worker Living categories it may be possible to consider you for other key worker options under Woking Borough Council's own key worker policy.

Shared ownership opportunities exist in the Borough for those who only earn a moderate income as well as those who belong to traditional key worker groups. If you can't afford to buy outright we might be able to help.

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Contact us

If you would like more information about these schemes, please contact the Housing Enabling team on 01483 743836 or email: housingenabling@woking.gov.uk 

Also in Schemes to help you find a home