Lending Criteria – Shared Ownership

This section of our criteria is all about Shared Ownership lending. We have broken each element down, please click the required link from the list below to read each element.
 

<–Back to Criteria Home

   

Borrowers Share

  • Minimum Share: 25%
  • Maximum Property Share on Initial Purchase: 75%
<– Back

Landlord Restrictions

The provider must be a registered Housing Association or a registered provider appearing on the following list: Registered Providers  <– Back

Locations

  • Shared Ownership lending is restricted to England and Wales
<– Back

Lease

  • The lease must be a Model Lease Agreement
<– Back

Memorandum of Sale

  • A Memorandum of Sale, which states the share being purchased, ground rent, the rent payable and the services charges is required with the supporting documents.
<– Back

Rent

  • Shared ownership rent, services charges and ground rent must be disclosed on the mortgage application form and will be treated as a commitment for the purposes of affordability.
<– Back

Staircasing

  • The lease must allow borrowers to staircase up to 100% ownership and is subject to:
  • Approval from the provider (Housing Association)
  • A minimum 10% tranche to be purchased
  • A solicitor must be used
  • A new valuation will be obtained
<– Back

Permitted Schemes

The following schemes are deemed unacceptable:-
  • Older persons shared ownership
  • Designated protected/rural areas
  • Home ownership for people with long term disability (HOLD)
<– Back