Have you decided that this is the year you want to buy a home? Then it’s time to explore your options, as there’s more than one way to do it.
As a first-time buyer, you could be eligible for buying schemes designed to help you onto the property ladder. Shared Ownership is one of those initiatives. It allows you to purchase a share of your home and pay subsidised rent on the remainder.
At Newlon Living, we develop Shared Ownership apartments in London, enabling you to achieve your homeownership dreams in the capital. Keep reading to learn more about the scheme and how to navigate it in 2025.
Understanding Shared Ownership
Shared Ownership works on a part-buy, part-rent basis. You’ll purchase an initial share in your home, between 25%-75% of the market value, and pay rent on the share you don’t own. You’ll need a 10% deposit based on the share you’re buying, so the down payment tends to be smaller than if you were purchasing a home through open market sale. It could be a viable option for you as a first-time buyer, especially in London, where the average home costs £526,000 on the open market, according to the UK House Price Index for September 2024. It’s why many first-time buyers in the capital choose Shared Ownership.
Visit our Shared Ownership buying guide to learn more about the scheme, including eligibility criteria.
Financial Planning
Buying your first home is a huge milestone and often takes careful financial planning. Below are some tools and factors to consider to help you prepare accordingly.
Shared Ownership Affordability Calculator
A Shared Ownership affordability calculator is a quick and easy way to get a breakdown of the finances required based on the value of the property and the share you want to buy. Use our mortgage calculator to get an indication of the deposit amount and how much you’ll need to borrow to purchase a Shared Ownership home. It will also work out the rental payment and estimate the total monthly cost so you can compare it against your budget.
Expenses to Budget For
Deposit
If you’ve decided to buy a home this year, you’ve probably already saved for the deposit. However, using the mortgage calculator linked above will give you a clearer picture of how much you’ll need in savings.
Fees
There are some other costs involved in the home-buying process that you’ll also need to budget for. Once you’ve found one of our Shared Ownership apartments you wish to buy, you’ll need to pay a £500 reservation fee. On top of that, expenses will include your mortgage valuation or survey and your solicitor’s fees.
Stamp Duty
Another home-buying expense you’ll need to factor into your budget is Stamp Duty Land Tax (SDLT). On 1st April 2025, changes to SDLT will take effect, including the tax relief threshold for first-time buyers. This means that if you complete on your Shared Ownership home after this date, you may have to pay SDLT, depending on its market value. Read our blog on the stamp duty changes for more information.
Steps to Buying a Shared Ownership Home
1. Search Available Homes
Make browsing our Shared Ownership homes your first port of call. When you see a development you like, you can register your interest, and we’ll get in touch. After that, you can fill in the application form and undergo a financial assessment with an approved Independent Financial Adviser.
2. View Homes and Register Interest
Next, we’ll invite you to a property viewing or launch event. At this point, if you are interested in one of these homes you can complete an Expression of Interest Form and pay the reservation fee.
3. Receive Offer
Once we receive the reservation fee and review and approve your application, we’ll formally offer you a Shared Ownership home. You’ll then have five days to accept the offer, appoint a solicitor and apply for a mortgage.
4. Conveyancing
After confirming your acceptance of the offer of a Shared Ownership apartment, the conveyancing process begins. You’ll instruct your solicitor to act on your behalf and they’ll carry out searches, informing you of anything that may impact your decision to buy the home. A valuation of the property you’re purchasing is carried out on behalf of the mortgage lender.
Once you’re satisfied with everything, you’ll sign and exchange contracts – this is the point at which your purchase becomes legally binding.
5. Completion and Moving In
Once you’ve exchanged contracts, a completion date is agreed. This is when you officially become a homeowner. You’ll pay your legal fees and pick up the keys and move into your new home.
Visit our buying information page for a more detailed overview of the process.
Staircasing Your Shared Ownership Home
Shared Ownership allows you to take incremental steps up the property ladder through a process called staircasing, whereby you increase your owned share as your income rises and reduce the rent amount. It’s possible to staircase to 100%, enabling you to own your home outright.
Newlon Living’s Shared Ownership Apartments
Now you know how the buying process works, it’s time to get started on your journey to becoming a homeowner. At Newlon Living, we develop Shared Ownership apartments in North and East London. Currently, you can find available homes at the following developments:
- Cassia in Oakwood, Enfield
- Nexus in Ponders End, Enfield
- Millstream Tower in Tottenham Hale, Haringey
Each development comprises stylish apartments, including one- and two-bedroom homes, thoughtfully designed with a high specification that complements modern living.
Your dream apartment is waiting for you to call it home, so start your property search today and make 2025 the year you buy your own place.
