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What is Shared Ownership?

What is Shared Ownership?

Shared ownership or part-buy, part-rent is a scheme to help people who can't afford to buy a property outright on the open market.

It allows you to buy a share in your new home and pay us a subsidised rent on the part you don't own.  You will buy your home on a lease, which will be 125 years for new homes.  If you are buying a second-hand property, the length of your lease will be based on the number of years that would have been left on the original lease.

 

What will I own?

You will own an equity share of the property based on a long lease. A lease is a legal agreement between you and Bournemouth 2026 Trust. The lease is based on a model lease published by the Homes and Communities agency.  It covers your and our responsibilities including maintenance, rent, buying more equity, selling the property and building insurance.

 

Why buy through shared ownership?

If you buy through shared ownership you will own part of your home rather than just paying rent with nothing to show for it.

Your monthly mortgage and rent can work out much cheaper than buying outright, and sometimes not any more than renting.

You can buy more shares (known as 'staircasing') or move if you want to.

 

Can I buy a bigger share in my home?

When you initially buy a Gladstone Mews home you will buy a 65% share. The lease allows you to buy a bigger share (more equity) over time , this is known as staircasing. You do not have to buy more shares, it is up to you to decide what's right for you. However you can only buy up to a maximum of 80% share of the property. 

As you only pay rent on the part you do not own, it means the more equity you own, the less rent you pay.

If you decide to buy more equity, the cost will be based on the value of your home at that time. We will use an independent valuer approved by the Royal Institution of Chartered Surveyors. You will have to pay for this valuation.

You may use your own valuer instead, but they must be approved by the Royal Institution of Chartered Surveyors.