Shared ownership

How does shared ownership work? 

Shared ownership makes it possible to own your home – even if you feel priced out of the property market.

It’s an affordable home ownership scheme designed as a stepping-stone to outright ownership if you can’t afford to buy a home on the open market.

Under the shared ownership scheme you part-own and part-rent your home, making it possible for first-time buyers and families to get on the property ladder.

With an L&Q shared ownership property, you start off by buying a share in your new home. You will have a lease agreement with the freeholder.

A lease is a legal document that proves you own part of your home and sets out conditions such as how often your rent and service charge goes up and by how much. 

The minimum share you can purchase is 25% and the maximum is 75%. You will usually pay a mortgage on the part you own and a subsidised rent on the part you don’t own.

As your income rises, you can increase the share you own until you eventually own 100% and no longer pay any rent to L&Q. This process is known as staircasing.

An affordable way to buy a home

Shared ownership is a more affordable way to have the security and stability of owning your own home.

If you’re currently renting your home, you may even be able to reduce your monthly outgoings with an L&Q shared ownership home. You may find the combined cost of your mortgage, rent and service charges to be cheaper than the cost of private rental. 

You could be within reach of owning your own home, even if you don’t have a large deposit ready. With shared ownership, you need a much smaller deposit than when you buy on the open market – and it’s already helped thousands of first-time buyers and families onto the property ladder. 

What’s more, you won’t be overstretched because you will only purchase the share you can afford. We will help you work out how much you can afford during your financial interview. As your income rises, you can increase the share you own, until you eventually own 100%.