Please note: Leeds Building Society only accepts mortgage applications from intermediaries where they are providing an advised sales service, with the exception of Buy to Let & Holiday Let applications. It is the responsibility of the intermediary to ensure that all applicable law including, without limitation, the Financial Conduct Authority rules on advised mortgage sales are complied with including, without limitation, the provision of adequate explanations.

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Myth busters - is shared ownership ‘real’ home ownership?

In the fifth and final blog in our series exploring the myths surrounding shared ownership, we bust the myth that shared ownership isn’t ‘real’ home ownership, and that the properties are harder to sell.

Potential buyers often disregard shared ownership as an option, as they see it as a lesser form of home ownership. In reality however, shared ownership is a useful and mainstream category of tenure in its own right, and could provide first time buyers and those on low to mid wages with an opportunity to get their foot on the property ladder.

While initially buyers only purchase a share of their home, a key feature of any shared ownership scheme is the ability to increase your equity by buying further shares of the property. This option, called ‘staircasing’, could eventually lead to the buyer owning their home outright, providing a long term solution to potential buyers who would like a home to call their own one day, but currently cannot afford a property on the open market.

When it comes to selling, a shared ownership property should not be any more difficult to sell than a normal home. With the Government extending access to shared ownership to 175,000 more households in April[1], demand for shared ownership is only expected to increase, meaning there are plenty of options for those who do wish to sell their current property. If they do, the housing association that holds the remainder of the property may want to buy back their share. If not, the property can then be put back onto the open market.

While shared ownership is not the sole answer to the housing crisis facing the UK, the scheme offers security of tenure compared to the private rental market, and could provide first-time buyers with the option to buy a share in a property that they wouldn’t otherwise be able to afford.


To find out more about the products available from Leeds Building Society and shared ownership, call our business development team on 03450 50 5555.

This article contains public sector information licensed under the Open Government Licence v3.0

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