Shared Ownership

Shared Ownership is for people who want to own their own home but cannot afford to buy a property outright.

Check out our video below that explains how the scheme works.

Shared ownership is a scheme that allows you to buy a share of your property, usually 40%, and pay a rent on the remaining share. Shared ownership allows you to buy more shares when you can afford to, you can usually increase the shares of your property, (known as staircasing), until you own it outright, but this is entirely up to you.

Alliance Homes offer a range of shared ownership properties across North Somerset, South Gloucestershire, Bristol and Bath and North East Somerset. Click here to view all our available properties.

Who is eligible for shared ownership?

To be eligible for a shared ownership property you must:

• Have a household income of less than £80,000 per annum
• Be unable to afford to buy a property on the open market that meets your housing needs
• Not already own a home, or you will have sold your current home before you complete the purchase
• Have enough money to cover the costs of buying the home i.e legal fees
• Not be in mortgage or rent arrears (at the time of the application, in the past year)

Frequently Asked Questions (FAQs)

• What are the steps to buying a shared ownership home?

  1. Register with Help to Buy: You will need to register with the Help to Buy agent. We will use your Help to Buy application form when you apply for a home with us.

  2. Obtain a Mortgage Agreement in Principle: You’ll need to speak with lenders or a mortgage advisor to obtain a Mortgage Agreement in Principle (AIP). An AIP will let you know how much money you can borrow, and give you an idea of how much you can afford to spend on your new home. You can choose to use your own mortgage advisor to obtain a AIP, go direct to the lender, or our financial advisors (whose details are in step 3) can help you to obtain a AIP as part of the financial assessment.

  3. Contact TMP (The Mortgage People) to undertake our financial assessment: Next you’ll need to complete our financial assessment with our financial advisor TMP, this ensures you are able to sustain the costs of home ownership. The financial assessment will include completion of a Budget Planner and The Homes England Affordability Calculator. (If you have used your own mortgage advisor to obtain an AIP, they will need to see a copy of this before they can undertake this assessment for you).

  4. Apply for a property: Our financial advisor will provide us with a copy of your completed Budget Planner, Homes England Affordability Calculator, & AIP. When we have checked your eligibility, we will make contact with you to discuss reserving the plot of your choice. Applications are considered on a first come, first served basis and applications from military personel will be given a priority.

  5. Reserve your plot: We can arrange for you to view your property or go through plans with you if your property has yet to be completed. If you're happy with your property you can place a reservation by paying a fee of £250. Your reservation will hold the property within the timescales that we have agreed in order for you to obtain your mortgage and exchange contracts.

  6. Provide additional documents: You can continue to use one of our dedicated financial advisors who undertook the financial assessment on your behalf to obtain a formal mortgage offer; or you may choose to use your own financial advisor or apply direct to the lender. At this stage, you will be required to provide a range of documents such as ID, bank statements and wage slips.

  7. Instruct your solicitor: We can provide you with a list of solicitors who are experienced in dealing with shared ownership, or you can choose your own. We will then send a memorandum of sale to your solicitor which covers all the details of your purchase.

  8. Mortgage offer issued: After you have reserved your property, and provided the additional documents required to obtain a mortgage, your lender/financial advisor will email us over a copy of your formal mortgage offer for our approval.

  9. Exchange contract: Once your solicitor has read through the contract and lease for your purchase and are happy with the documentation, we will then be able to exchange contracts. You will sign a contract to buy a home and we will sign another to sell it. Your solicitor will ask for funds. On exchanging contracts, a date for completion will be agreed. If your house is still being built we will keep you updated with the progress.

  10. Move in: When the completion date has arrived we will hand over the keys, check the meter readings, and give you the utility provider’s details so that you can register your occupancy. We will give you with a welcome pack, warranty information (if applicable) and product manuals for your home.

• What are the costs?

  Before deciding if shared ownership is for you, you need to think about the initial and ongoing costs of owning your own home.

  Initial costs 

  • A deposit
  • Legal fees
  • Reservation fee
  • Removal costs
  • Stamp duty (if applicable)

  Ongoing costs

  • Mortgage
  • Rent
  • Service charge
  • Utilities
  • Council tax
  • Repairs and maintenance
• What am I buying?

  Buying a shared ownership property means that you are an owner-occupier. You will have a lease which is a legal documentation that outlines rights, responsibilities and what both parties are responsible for.

• Can I buy more shares?

  You can buy more shares in your property which is also known a “staircasing”. Usually you have to wait 12 months after moving as before applying for more shares and there may be some restrictions on properties in rural locations. In most cases you can staircase until you own your property outright.

  You can find more information about the staircasing options and a step by step guide here.

• What happens if I want to sell?

  If you want to sell your home you can do this at anytime, but you must let us know if you decide to do this.

  You can find our easy-to-follow resales guide which has all the information you’ll need to sell a shared ownership home here.

• Can I improve/alter the property?

  Before making any alterations to your property, you must first get written approval from us, and in some instances, your mortgage lender. Depending on the type of alteration, you might need to apply for planning permission.

• What about repairs and maintenance?

  You are responsible for all repairs and maintenance to the property like other homeowners. If the property you’ve purchased is brand new, you may be covered by a guarantee. We will advise you if this is the case and what that guarantee covers.