Shared Ownership

What is Shared Ownership?

Shared Ownership is the leading affordable home ownership scheme provided by Housing Associations. If you can't afford to buy outright, you can part buy and part rent your home and it provides a great way in to home ownership.
With Shared Ownership you only need to raise a deposit for the share you are purchasing. You pay a mortgage only on the share you buy (25%-75% of the property value) and pay subsidised rent on the share you don't own. You can normally buy further shares until you own 100% of the property.
Shared Ownership schemes are managed locally by Housing Associations (HA).

If you would like more information on Shared Ownership please click on the link below

http://www.direct.gov.uk

Dispelling the myths of Shared Ownership

You don't have to be a Key Worker to be eligible for Shared Ownership.
Being in a well paid job doesn't rule you out - Shared Ownership is available to customers whose household income is £60,000 or less (£64,300 or less for 1-2 bed and £77,200 or less for a 3+ bed property in London).
It isn't poor quality housing in less premium areas - Shared Ownership properties are just as likely to be found in desirable new developments and are often more spacious and have better green credentials than other homes as they have to comply to stringent Government guidelines.

How can I find out more?

If you are struggling to save a large enough deposit for a home, you may wish to contact your local Homebuy agent about what options are available to you. If you would like to find out more about Shared Ownership in your area visit www.homebuy.co.uk

How does Shared Ownership work?

Under Shared Ownership, you would purchase a percentage of the property (with a mortgage, cash deposit or combination of both).
The minimum initial share you can buy is 25% (with Housing Association owning the remaining 75%).
The maximum initial share you can buy is 75% (with the Housing Association owning the remaining 25%).
So if you purchased a 25% share, you would take a mortgage out on just this share (you would require a minimum deposit of 10% on your share) - see the example table below for limits.
You would pay a subsidised rate of rent to the Housing Association on the share they own.
You will also have to pay service charges and possibly ground rent. Remember to include these costs when you work out whether you can afford the property.
You can choose to increase the percent you own over time, by purchasing further shares in the property from the Housing Association (minimum usually 10%).

Example

Let's look at how it would work if you decided to purchase a 25% share of a property with a Housing Association

Full market value of the property £160,000

HA share 75%	£120,000
Your share 25%	£40,000
Your deposit	£4,000 (i.e. 10% of the value of your share)
Mortgage Required	£36,000
(at 90% LTV* of your share)

*Loan to Value (LTV) means the % of the loan taken out against the value of the property.

You would pay the Housing Association rent on the 75% share they own. The level of rent is subsidised.

Santander's lending policy

This is a general guide on our Loan to Value (LTV) lending limits for new homes by accommodation type.

Policy

Loan to Value (LTV) limits
for new build properties

House Flat

All buyers*

85%

75%

* Excludes Buy to Let

Why choose Santander

As a Shared Ownership customer you will have access to the same great mortgage rates as all of our customers.
Santander offer Shared Ownership mortgages up to 90% LTV of the value of the share you are buying. However, if you are buying a new build property, we have different LTV limits as detailed in the table above.

All applications are subject to status and our current lending criteria. This means that the amount we will lend you will depend on your individual circumstances, the type of property and the amount you borrow. For example, we may require a higher deposit if you are buying a flat or a new build property.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.