Shared ownership & other routes
Lesson 9 of 12 in our free Buying a Home guide: a 5-minute money game with the key points below.
This lesson is in the full version.
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Questions you'll answer
Mo buys a 40% share of a £250,000 flat. How much is Mo's share worth?
Quick facts
- Paid to the lender on the share Mo bought → Mortgage. Mortgage on Mo's share.
- Paid to the housing provider on the share Mo doesn't own → Rent. Rent on the rest.
- Covers building upkeep like lifts, lighting and cleaning → Service charge. Service charge — and it can rise.
- Fact: “'Staircasing' means buying more shares over time.” — Each bigger share means less rent — but costs (like valuations and legal fees) apply.
- Fact: “Shared ownership homes are usually leasehold.” — So there's a lease with rules, service charges and sometimes restrictions on selling.
- Myth: “With shared ownership, you never pay for repairs.” — You're often responsible for repairs and maintenance — even with a small share.