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Pros and Cons of Shared Ownership

Shared Ownership is a popular house buying process for many, however there are considerations to weigh-up before committing.

Pros of Shared Ownership

  • Generally a smaller deposit is required meaning you can buy your new home faster.
  • Great option if you are on a lower income.
  • You can buy more shares, when you can afford it.
  • And sell the ones you already own at any time.
  • Your monthly payments are usually lower than renting privately.
  • Some houses can become freehold once you staircase to 100%
  • You are free to decorate internally.
  • If the property value increases, so will the value of your shares.

Cons of Shared Ownership

  • All properties sold through Shared ownership are leasehold.
  • You have to pay a 100% of the service charge and ground rent, however low your share is.
  • If you want to sell your property, it may need to be via the housing association you purchased from.
  • It costs extra to buy more shares.
  • Not all lenders offer mortgages to Shared ownership properties.
  • There are restrictions to any structural alterations. You will require permission from the housing provider.
  • You are responsible for all repairs and maintenance costs.
  • You will pay Stamp Duty on the whole property when you own share of 80% or more.

Think Shared ownership is right for you? Start the search for your dream home here.

Disclaimer

newhomesforsale.co.uk is an information platform and not a financial advisor, mortgage broker or mortgage lender. Always get financial advice before making significant decisions about your money, mortgages and buying a house.

Publish date 5th June, 2025
Reading time: 3 minutes
Written by Heather Bowles

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