Shared Ownership FAQ’s

Shared Ownership is a government-backed scheme that helps first time buyers onto the property ladder. You will get a mortgage to buy an initial share in the property and pay a subsidised rent to Newlon on the share you don’t own.

Initially you can buy between 25% – 75% of the value of the property. The greater the share you own, the lower the monthly rent paid. Homes England guidelines state you are encouraged to purchase the maximum equity share you can sustainably afford, dependent on income, savings and outstanding credit commitments.

Please see the below general eligibility criteria you need to meet:

– Your gross household income must not exceed £90,000 per annum

– You will be expected to be a first time buyer, although some applicants who previously owned a home may be eligible (e.g. relationship break up, relocation due to work)

– You must not own a home anywhere in the world (unless a court order forces you to remain on the deeds of a property where your children reside)

– You must be unable to afford a suitable home for your family size on the open market

– You must be financially able to buy the minimum share available and pass a financial assessment

– You should be a British or EU/EEA citizen or have indefinite leave to remain. Applicants without indefinite leave to remain must prove they are able to secure a mortgage with an acceptable lender

To ensure properties go to those most in need, if there is more than one applicant interested in a specific property, we give preference to applicants in the following order:

– Armed Forces personnel (serving military personnel or former members of the British
– Armed Forces discharged in the last 2 years)
– Current Local Authority or Housing Association tenants within the borough
– Keyworkers within the borough
– People living or working within the borough
– First time buyers in neighbouring boroughs

We will prioritise according to family size for larger properties. We are not able to prioritise single applicants for 2 bedroom homes, this is however dependent on demand.

This is when new build homes are offered for sale prior to completion. Buying off-plan means you are purchasing based on information provided in a brochure, floor plans and CGIs of what the finished product should look like. You will be provided with estimates dates for when the development will be completed. However, there is a possibility that the completion date could be delayed due to issues outside our control. It is important that you are aware of this and build this into your plans, for example, if you are in private rented accommodation, you should not hand your notice in until you have a confirmed completion date. In addition, you should advise your mortgage lender of any changes. Unlike buying an existing property, you may not be able to see it until you have committed yourself to paying for it, so this approach may not be for everyone.

We recommend you have around £5,000 in savings to cover the initial costs including:

– £500 reservation fee
– Mortgage valuation or survey
– Legal fees
– Stamp duty where applicable

On average, the purchase of a Shared Ownership home can take between two to four months. Depending on the size of the development and the stage at which you reserve, it can take between two to four weeks before allocations are confirmed. A formal offer letter will be sent to you confirming the details of the property offered together with a Confirmation of Acceptance Form which you have five working days to complete and return. Upon receipt of the form, we will produce a Memorandum of Sale (MoS) and instruct solicitors. The MoS will highlight the date we expect you to exchange contracts, usually five weeks from the date of the MoS, and the completion date is usually within 10 working days of exchange.

Please click here for details about the process of purchasing of one our homes.

Our properties have a no pets policy. Assistance dogs are exempt from this policy though permission will still be required.

Shared Owners
As a shared owner, subletting of these homes is not permitted, except in exceptional circumstances – this is a condition of the lease.

However, you do not need our permission to take in a lodger. However, you must first check that your lodger can legally rent in England as you risk a heavy penalty if they can’t. You should also check the terms of your lease as some leases may not allow lodgers. You can find out more about how to do this at www.gov.uk/check-tenant-right-to-rent-documents.

100% Leaseholders
If you are a 100% leaseholder or have staircased to 100% ownership, you are allowed to sublet but it is mandatory that you inform us before you do so. To apply to sublet you will need to complete the relevant application which can be found at https://www.newlon.org.uk/residents/home-owners/subletting/

A resale property is a Shared Ownership property that the current owner bought new from us or as a resale. Buying a resale property makes you an owner-occupier because you are buying at lease the current owner’s share on the existing lease. The great thing about choosing to buy a resale shared ownership property is that it gives you the opportunity to speak to the previous owner and to find out more about the area. You also have the chance to understand what bills they are paying and see how they have used the space for their furniture.

You can see the resale properties we currently have available here. To book a viewing, please register your interest for the relevant property, and we will email you to confirm the arrangements.

If you would like to buy more shares in your home, this is known as “staircasing”. The greater the share you buy in your home, the less rent you will pay. Buying additional shares in your home to a total of less than 100% is known as “interim staircasing”. Your rent will reduce in proportion to the share you own on completion. If you staircase to 100% you will pay no rent and own your home outright.

If you wish to staircase you will need to complete our “staircasing instruction form”. Please email staircasing@newlon.org.uk to request this.

As a Shared Owner, you can sell your home at any time. Under the terms of your lease, Newlon has a nomination period, usually between six and eight weeks, to find a suitable buyer for your property. If we are unable to find a buyer within the nominated period, you can offer your home for sale on the open market via an estate agent.

If you wish to sell you will need to complete our “resale instruction form”. Please email resales@newlon.org.uk to request this.

As a leaseholder, you are responsible for any issues within your property and any internal items which solely service your property.

Depending on the terms of your lease, Newlon might be responsible for any issues with your windows, front entrance doors and any balcony or garden doors that are not as a result of misuse or vandalism.

Yes, you can decorate a Shared Ownership property but if you are planning on making improvements to your home you should seek our permission. You can find further information here.