Shared ownership homes | Progress Housing Group

Shared ownership enables you to enjoy the benefits of owning a home without having to pay the whole cost up front, trying to save for a large deposit or having to secure a large, standard mortgage.

The scheme enables you to buy a 25% or more share in your new home with the option to purchase more shares up to 100% and a deposit as low as 5%*; there will be a rent and service charge applicable on the remaining share in your shared ownership home.

If you are interested in buying a shared ownership home, please get in touch with us on 07929 856303 or email salesenquiry@progressgroup.org.uk

Our current shared ownership homes are advertised on Solo Homes and Rightmove.

*Terms may vary between schemes

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Explore our latest developments

Get on or stay on the housing ladder without having to pay the whole cost upfront, trying to save for a large deposit or having to secure a large, standard mortgage.

Church Croft, Weeton

Three-bedroom homes from £60,000

View development (external link)

Marchioness Drive, Euxton

Three-bedroom homes from £92,000

View development (external)

Saw Mill Close, Great Harwood

Three-bedroom homes from £78,000

View Development (external)

Weeton: Church Croft, Preston (solohomes.co.uk)

Euxton: Marchioness Drive, Euxton (solohomes.co.uk)

Great Harwood: Saw Mill Close, Great Harwood (solohomes.co.uk)

An overview of shared ownership

Shared ownership doesn’t mean you share your home with anyone; as the name suggests, you buy a share of the property and pay rent on the part you don’t buy, which will be owned by the landlord.

You can buy an initial share of between 25% and 75% of a shared ownership property (also known as a leasehold property), which means you can live in your home just as if you owned it outright.

Eligibility

You may be eligible for shared ownership if:

Your total household income is less than £80,000
You do not currently own your own home or need to sell your current home for reasons such as a relationship breakdown
Your current property becomes unsuitable for your needs and you cannot afford to buy on the open market
You are a serving member of the British Armed Forces or have been honourably discharged in the last two years, then you may receive priority for buying a home through shared ownership
You are a key worker, existing shared owner or renting a housing association or council-owned property, then you may also be prioritised.

We cannot sell a shared ownership property to you if you already own one.

In some circumstances, there is a requirement for a local connection. If you reside in the local area, have family and friends who have a local connection, or are employed in that area, this may satisfy the criteria.

Affordability

You will need a financial assessment by an independent mortgage adviser before you will be allowed to reserve a property.

A smaller deposit and lower monthly payments make it easier to buy your new home, and if you want to, you can buy further shares in the future (called staircasing) until you own it outright.

If you staircase to 100% ownership, then the property becomes yours and we have no further interest in the property at this point and there is no rent to pay.

Terms of the lease

Amongst other things, the lease will clearly set out:

A description of the property, including its boundaries and which parts are your responsibility
The start date of the lease, the share that you have bought, the amount of the rent that you must pay, together with any other payments including management charges and service charges if applicable
Your responsibilities as a shared owner, or leaseholder, including repairs and maintenance of the property, and the responsibilities of Progress Housing Group, for example, buildings insurance
The method by which you can buy further shares in your home (known as staircasing) and the method by which you can move home.

Selling your shared ownership property

If you decide to move, you can sell the same share you bought or the whole property.

By selling the whole property, you may obtain increased value if property values have increased since you originally purchased.

If property prices fall, you will incur a shared loss if you decide to sell - just as if you owned the property outright.

As the landlord, we have the first refusal to buy the property or the right to find a buyer. If you already own the property outright, you can sell it yourself.

Facts, myths and what to be aware of

Shared ownership is an affordable housing product which enables you to get a foot on the property ladder or stay on the property ladder. Shared ownership is particularly good for first-time buyers, downsizers and purchasers who are starting again following a relationship breakdown. The rental element can in certain circumstances be covered by Housing Benefit making it even more affordable.

Benefits

Shared ownership allows you to get onto the property ladder more quickly than you might if you wanted to buy a home outright
You’ll need less savings as you will be putting down a deposit on a share of the property. For example, a 25% share of a property worth £200,000 may only require a deposit of £2,500
You own as much of your home as you can afford, and you can buy a larger share when you are able to, but the choice is yours
You can buy additional shares as time goes on and you save more, this process is called staircasing
Your monthly mortgage payment plus rent can work out less than renting on the open market
Instead of paying rent every month and having nothing to show for it, you own a part of your home
You can sell a shared ownership property at any time and will benefit from any increase in value it's seen since you bought.

Myths

Shared ownership has been around for more than 30 years but still doesn’t enjoy the confidence that it deserves. The reason for this is the myths that are bandied about by those who know nothing about the product and bear no resemblance to the facts. A lack of understanding around several key points is what makes buyers nervous.

More difficult to obtain a mortgage - This is simply not the case over recent years the number of high street lenders who offer shared ownership mortgages has seen a real increase. The same assessments are undertaken as if you were obtaining an ‘ordinary’ mortgage meaning if you have a deposit and a good credit rating it will be straightforward.
Properties are in less desirable areas - While this has never been the case over recent years changes to planning requirements mean that on most new housing developments housebuilders must provide a proportion of affordable homes. This means shared ownership homes are popping up in increasing numbers in highly sought-after new residential developments.
It’s expensive - The monthly payments required to live in a shared ownership property hover somewhere between full ownership and private renting. A report in 2013 by the National Housing Federation highlighted average shared ownership monthly payments were lower than market rent or full ownership in all regions of England except for the North East.
Qualifying is difficult - Many people believe you can only purchase if you have a very low income or are a key worker. In reality, the product is open to a much wider market. Put simply, if your combined household income is less than £80,000 and you don’t own another property, you should qualify for most properties. Some shared ownership properties have additional local connection criteria.
It’s not ‘real’ home ownership - Some disregard shared ownership as they see it in some ways as a lesser form of ownership. It should be seen as a tenure that allows homebuyers to get on the ladder and provides a stepping stone to 100% ownership, but it should also be a perfectly acceptable option to stay and own a share of your home. Part ownership gives you security of tenure and allows you to benefit from any appreciation in value when the property is eventually sold. It’s worth remembering that some equity, large or small, is better than none.
Previous homeowners can’t apply for shared ownership - It is fine to have previously owned and sold a property. Your application is based on your current housing situation. You can apply if you are under an offer on your current property.

What to be aware of

As with all forms of housing tenure, some things need consideration before deciding. Below are things to be aware of:

Affordability - Whilst shared ownership is affordable due to the lower deposit required and the rent being below the market rate, it doesn’t mean that everyone can afford it because different developments require different income levels based on the open market values of the properties.
Poor credit rating - A poor credit rating may rule you out of qualifying for a mortgage, particularly if you only have a 5% deposit. If in doubt, contact a financial advisor before viewing.
Moving costs - As with any house purchase, you must have adequate funds to cover certain costs at the outset. You will need at least £5,000 in savings to consider shared ownership. This level of savings will cover a deposit of 5%, reservation fee, solicitor’s fees and removal costs.
Repairs and maintenance - With shared ownership, however small the percentage you own (25%), you have a full repairing obligation. Like any homeowner, you will be responsible for the maintenance of your property, including repairs and decoration. New homes bought through shared ownership benefit from a new home warranty, which normally lasts ten years from when it was built and covers most major problems.