Lending Criteria – Shared Ownership

<–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