Married and unmarried couples can buy a Shared Ownership home together, provided they meet the eligibility, affordability and mortgage requirements. Your combined household income will normally be assessed, together with both applicants’ savings, debts and regular expenses.
This guide explains how joint applications work, what costs to consider and the decisions you may need to make about your mortgage and legal ownership.
This guide covers buying a Shared Ownership home as a couple in England. Different schemes and rules apply in Scotland, Wales and Northern Ireland.
“We were so nervous to start the process of moving home, but the Guinness Homes team have been nothing but supportive; even down to helping us choose a mortgage broker and a solicitor who specialises in Shared Ownership. The whole process has been so straightforward and as a couple who work full time, this has really suited our needs.”
George and Laura, Signal Park, Tolworth
Can couples apply for Shared Ownership together?
You can apply with your spouse, civil partner or unmarried partner, provided you meet the requirements for the home.
When you make a joint application, you will normally be assessed as one household. The affordability assessment may consider:
- Your combined income
- Your available deposit and savings
- Loans and credit commitments
- Childcare and maintenance payments
- Travel and living expenses
- The proposed mortgage payment
- Rent on the share you do not own
- Service charges and other property costs
Applying together may increase the amount you can borrow because both incomes can be considered. It also means that both applicants’ debts, financial commitments and credit histories may affect the application.
Joint buyers will usually both be named on the Shared Ownership lease and mortgage. Both applicants will then have responsibilities under the mortgage and lease.
If you are considering applying in one person’s name, speak to our sales team before starting your application. The requirements will depend on your household circumstances, affordability and the home you want to buy.
Are we eligible for Shared Ownership?
In England, your combined household income must normally be £80,000 a year or less, or £90,000 or less if you are buying in London. This limit applies to your total household income, not separately to each applicant.
You must also be unable to afford the deposit and mortgage payments needed to buy a suitable home on the open market.
At least one of the following must usually apply:
- You are first-time buyers
- You previously owned a home but cannot afford to buy one now
- You are forming a new household following a relationship breakdown
- You already own a Shared Ownership home and want to move
- You own another home but cannot afford to buy one that meets your needs
If either applicant currently owns a property, it will normally need to be sold on or before completing the Shared Ownership purchase. You must usually have formally accepted an offer on your existing property before proceeding.
Some developments may have local connection, residency, employment or other priority requirements.
Meeting the general eligibility rules does not guarantee that you can buy a particular home. You will still need to complete an affordability assessment, meet the mortgage lender’s criteria and satisfy any requirements attached to the property.
How will our income be assessed?
Both applicants’ finances will usually form part of a joint affordability assessment.
The share you are offered may depend on:
- Your combined income
- Your available deposit
- Your debts and credit commitments
- Your regular household expenses
- The mortgage available to you
- The rent and service charge
- The housing provider’s affordability assessment
The percentage you buy will be based on the share you can reasonably afford, so you may not be able to choose the smallest share available.
Tell your mortgage adviser if either applicant:
- Is on maternity, paternity or parental leave
- Is self-employed
- Works on a fixed-term or temporary contract
- Receives commission, bonuses or overtime
- Has recently changed jobs
- Expects their income or working hours to change
The evidence required and the amount of income accepted can differ between mortgage lenders.
How does Shared Ownership work for couples?
Shared Ownership allows you to buy a share of a home and pay rent to a housing provider on the remaining share.
The share available is generally between 10% and 75% of the property’s full market value, although the minimum share will depend on the home. Your deposit is normally calculated against the value of the share you buy rather than the home’s full value.
For example, if a home has a full market value of £300,000 and you buy a 40% share:
- Your share would cost £120,000
- A 5% deposit on that share would be £6,000
- You would need a mortgage of up to £114,000, unless you used additional savings or another source of funds accepted as part of your purchase
- You would pay rent on the remaining 60% share
- You may also pay service charges and other property-related costs
The 5% deposit shown is an example. The amount required will depend on the mortgage lender and your circumstances.
The share you are expected to buy, mortgage available, rent and property charges will also depend on the home and your financial circumstances.
The housing provider should give you a key information document setting out the costs associated with the home before you reserve it.
How much should we budget?
The deposit is only one part of the cost. You will also need to consider your buying expenses and total estimated monthly housing cost.
Initial costs may include:
- Your mortgage deposit
- A reservation fee
- Mortgage adviser or arrangement fees
- Valuation fees
- Solicitor or conveyancer fees
- Searches and Land Registry charges
- Removal costs
- Furniture and household items
- Stamp Duty Land Tax, where applicable
You may need to pay a reservation fee. Check how much it is, how long it secures the home and whether any part would be refunded if the purchase did not proceed.
Regular costs may include:
- Mortgage repayments
- Rent on the share owned by the housing provider
- Service charges
- Estate charges
- Management fees
- Contributions to a reserve or sinking fund
- Buildings or contents insurance
- Council Tax
- Utility bills
- Repairs and maintenance
- Parking charges, where applicable
Your rent will normally be reviewed each year and may increase. It will not usually decrease following a rent review. The calculation used will depend on the terms and date of your lease.
Service charges, estate charges and other property costs can also change. Your budget should allow for possible increases rather than relying only on the amounts quoted when you apply.
Ask what each charge covers and whether the housing provider is aware of any planned major works or significant changes. Future costs cannot always be predicted.
Could we pay Stamp Duty?
Stamp Duty Land Tax may be payable when you buy a Shared Ownership home. The amount and payment options will depend on the purchase and your circumstances.
If you are buying jointly, every buyer must qualify as a first-time buyer for First-Time Buyers’ Relief to apply. Shared Ownership buyers may be able to claim the relief when buying their first share if they meet the applicable conditions, including the property-value limit in force at the time.
Your solicitor or tax adviser can explain the options, eligibility requirements and potential costs before you complete.
What does a joint mortgage mean?
If you are buying the home together, you will usually apply for a joint mortgage.
Each applicant is responsible for the full mortgage payment, not simply their agreed contribution. If one person stops paying, the lender can still require the other borrower to make the complete payment.
Applying for a joint mortgage will normally create a financial link between you on your credit records. This means one person’s financial circumstances may affect the other person’s ability to obtain credit. Missed or late payments on joint borrowing could also affect both applicants.
Before applying, discuss:
- How much each person will contribute to the deposit
- How you will divide mortgage payments
- How you will pay the rent and service charge
- Whether payments will be equal or based on income
- How you will cover repairs and unexpected costs
- What would happen if one person’s income fell
- How much emergency savings you will retain
What if one person contributes more?
One person may contribute a larger deposit or pay more towards the monthly costs. This does not mean that the additional amount will automatically be returned to them if the home is sold.
It is important to distinguish between:
- The share owned by the housing provider
- The share you buy together
- Each person’s beneficial interest, meaning their agreed financial share in the part of the home you own together
For example, if you buy a 40% share, any agreement between you concerns how your interest in that 40% is divided. It does not give either person an interest in the remaining share owned by the housing provider.
Your solicitor may discuss a declaration of trust or another legal agreement with you. This could record your deposit contributions, financial shares and how proceeds would be divided following a future sale.
How will we legally own the home?
Couples buying together in England will generally need to decide whether to hold their Shared Ownership interest as joint tenants or tenants in common.
Joint tenants
You own your Shared Ownership interest jointly rather than holding separate financial shares. If one owner dies, their interest will normally pass automatically to the surviving joint owner.
Tenants in common
You each hold a defined financial share in the interest you own. These shares can be equal or unequal.
One person’s interest does not automatically pass to the other owner if they die. It will normally pass according to their will or the applicable intestacy rules.
Your conveyancer can explain which ownership arrangement reflects your intentions, contributions and circumstances.
Who pays for repairs?
You will need to pay for repairs and maintenance, no matter how large or small your share is. Some costs may be covered by a building warranty or an initial repair period.
For flats, the housing provider or building owner may arrange external and structural repairs. You may still need to contribute to the cost through your service charge or a reserve fund if it is not covered by a warranty or another form of protection.
Some homes bought under the new Shared Ownership model have an initial repair period written into the lease. This usually runs for 10 years from the start of the first Shared Ownership lease and only applies while less than 100% of the home is owned. It covers certain repairs and is subject to limits and conditions.
If the home is sold as a Shared Ownership resale during this period, the new buyer may receive the benefit of the remaining period rather than a new 10-year period.
Before reserving, check:
- Which repairs are your responsibility
- Which repairs are arranged by the housing provider
- How communal and structural repairs are funded
- Whether you must contribute to a reserve fund
- Whether a building warranty remains in place
- Whether an initial repair period applies
- How long remains on any initial repair period
- Which repairs and costs are covered
- Whether you need permission before making alterations
The key information document and lease should confirm whether an initial repair period applies to the home, how long remains and what it covers.
What happens if our circumstances change?
It may feel uncomfortable to discuss separation or a change in income, but agreeing how different situations would be handled can protect both people.
One person cannot normally take over the home simply because the other person moves out. A transfer may require approval from the housing provider and mortgage lender, a new affordability assessment and legal changes to the mortgage and lease.
The available options may include:
- Transferring the lease and mortgage into one person’s name
- One person acquiring the other person’s financial share
- Selling the Shared Ownership home
- Buying more shares before selling, where permitted
If the home is sold, the housing provider may have a set period in which it can nominate or find a buyer. The valuation, marketing process and fees will depend on the lease and the provider’s resale process.
A declaration of trust or cohabitation agreement can record what you have agreed. Your solicitor can advise on whether an agreement is appropriate for your circumstances.
If one owner dies, what happens to their interest will depend partly on whether you own it as joint tenants or tenants in common. The surviving owner will remain responsible for the mortgage, rent and other property costs.
Ask your conveyancer how your chosen ownership arrangement affects both of you and consider reviewing your wills.
Can we buy more shares later?
Shared Ownership homeowners can usually buy additional shares through staircasing. As your ownership share increases, the rent paid to the housing provider will normally decrease because the provider owns a smaller share.
The increments available will depend on your lease. They may be 1%, 5%, 10% or more, while older leases may require larger increments. Restrictions can apply to certain homes.
Check the lease and key information document to understand:
- When you can staircase
- The minimum additional share you can buy
- Any restriction on reaching 100% ownership
- How the home will be valued
- Which legal and administration fees apply
- Whether you will need a new mortgage or remortgage
The cost of an additional share will normally be based on the home’s market value when you staircase, not its value when you first bought it. Valuation, legal, mortgage and administration fees may apply.
What should we check before reserving?
Use the following checklist before paying a reservation fee.
Your purchase
- The full market value
- The percentage and price of the share
- The deposit required
- The reservation fee and refund terms
- The estimated mortgage payment
- Your expected buying costs
- How you will divide the deposit and monthly payments
Monthly costs
- The initial rent and how it can increase
- The service charge and what it covers
- Any estate or management charge
- Reserve fund contributions
- Insurance costs
- Which charges could increase
- How you would manage if one person’s income fell
Lease and property responsibilities
- Repairs and maintenance
- Alteration restrictions
- Building warranties
- Any initial repair period and how long remains
- Staircasing rules
- Restrictions on reaching 100% ownership
- Resale and nomination arrangements
- What you have agreed should happen if one person wants to leave
Practical details
- Parking arrangements and charges
- Known planned major works
- Communal facilities and costs
- Property or estate restrictions
- What is included with the home
You should receive the property’s key information document before reserving. Read it carefully, ask about anything you do not understand and keep a copy for your records.
Frequently asked questions
Can an unmarried couple buy a Shared Ownership home?
Yes. You do not normally need to be married or in a civil partnership to apply together. Both applicants will need to meet the eligibility, affordability and mortgage requirements.
Is the income limit per person or per household?
The income limit applies to your combined household income. In England, this must normally be £80,000 a year or less outside London and £90,000 or less in London.
What happens if a Shared Ownership couple separates?
The home cannot normally be transferred automatically to one person. The housing provider and mortgage lender may need to approve the change, and the remaining applicant may need to complete a new affordability assessment.
Take the next step together
Before reserving a Shared Ownership home, make sure you both understand:
- Your proposed legal ownership arrangement
- Your deposit and buying costs
- Your total estimated monthly housing cost
- How rent and other charges may change
- Your repair responsibilities
- What could happen if your circumstances changed
Review the property’s key information document and speak to a mortgage adviser and conveyancer with Shared Ownership experience before making a financial or legal commitment.
View Shared Ownership homes for sale
Explore available homes and speak to our team about the application and affordability process.
Eligibility, affordability and property restrictions apply. Your home may be at risk if you do not keep up your mortgage repayments, pay your rent or meet the terms of your lease.
