Shared Ownership is a housing scheme that allows you to buy a share of a home and pay rent on the share you do not own. It may be an option if you cannot afford all the deposit and mortgage payments needed to buy a suitable home outright.
There is no general upper age limit for standard Shared Ownership. Some Shared Ownership homes are reserved for people aged 55 or over through Older Persons Shared Ownership, often known as OPSO.
Your age can affect the type of Shared Ownership home available to you, your mortgage options and how much of the property you can buy. It is not the only factor. Your income, housing circumstances and ability to afford the mortgage, rent and other ongoing costs will also be assessed.
What is Shared Ownership?
Shared Ownership allows you to buy a share of a leasehold property and pay rent to the landlord on the share you do not own. Shared Ownership homes are offered by housing associations, councils and other approved providers.
For many Shared Ownership homes, the share you can buy is usually between 25% and 75% of the property’s full market value. Some homes are available with an initial share of 10%. You will normally need a mortgage or savings to pay for your share, along with a deposit based on the share you are buying.
You may be able to buy further shares in the future through a process called staircasing. Buying more shares will usually reduce the rent you pay because the landlord’s share becomes smaller.
For most Shared Ownership homes, the maximum share is 100%. Some properties have a lower limit. Older Persons Shared Ownership homes have different rules, and some homes in designated protected areas may also have ownership restrictions. The key information document and lease will explain the rules for a particular home.
Who can apply for Shared Ownership?
Shared Ownership is intended for people who cannot afford to buy a suitable home on the open market.
Under the current rules for Shared Ownership in England, your household income must be £80,000 a year or less, or £90,000 a year or less in London. You must also be unable to afford all the deposit and mortgage payments for a home that meets your needs.
At least one of the following must also apply:
- You are a first-time buyer
- You previously owned a home but cannot afford to buy one now
- You are forming a new household, such as after a relationship breakdown
- You already own a Shared Ownership home and want to move
- You own a home but cannot afford to buy another home that meets your needs
Some properties have extra eligibility requirements. You may need to show that you live or work in the area, or that you have another recognised local connection. Always check the property-specific criteria before you apply.
Is there a minimum age for Shared Ownership?
You will normally need to be at least 18 years old to buy a Shared Ownership home. This is because the purchase involves entering into a legal agreement and, in most cases, taking out a mortgage.
Being over 18 does not guarantee that your application will be accepted. The housing provider will assess your eligibility, and a mortgage adviser or lender will consider whether you can afford the mortgage and other payments.
Is there an upper age limit for Shared Ownership?
There is no general upper age limit for standard Shared Ownership. Older applicants must still meet the scheme’s eligibility and affordability requirements.
Mortgage availability can depend on your income, your expected retirement income, your planned retirement date, the proposed mortgage term and the lender’s criteria. A qualified mortgage adviser can explain the options available based on your circumstances.
People aged 55 or over may also qualify for Older Persons Shared Ownership, where OPSO homes are available.
What is Older Persons Shared Ownership?
Older Persons Shared Ownership is designed for eligible buyers aged 55 or over.
OPSO follows many of the same eligibility rules as standard Shared Ownership, but it has different ownership rules. Eligible buyers can usually buy a share of between 10% and 75% of the home’s full market value.
Once an OPSO buyer owns a 75% share, they do not have to pay rent on the remaining 25% share. Service charges and other property costs may still apply.
OPSO homes and services vary between developments. Before reserving a home, check the property listing, key information document and lease to understand:
- The initial share available to buy
- The maximum share permitted
- The rent payable before reaching 75%
- Service charges and other ongoing costs
- Accessibility features provided
- Any age or occupancy restrictions
- The rules for selling or transferring the home
- What happens if the home is inherited
Do not assume that an over-55 property includes adaptations, care provision or an on-site support service unless these are listed as part of the development.
Shared Ownership considerations for older buyers
Mortgage and affordability assessment
Getting a mortgage later in life may depend on your income, retirement plans and the lender’s maximum mortgage term. Lenders may consider employment income, pension income and other eligible sources of income when assessing an application.
The mortgage is only part of the monthly commitment. Rent, service charges, estate charges and other property costs must also remain affordable. Speak to a qualified mortgage adviser before making a reservation.
Choosing a suitable home
Think about whether the location, layout and access arrangements are likely to remain suitable in the years ahead.
Check the confirmed features of the individual property rather than relying on general descriptions of retirement housing. If you need an accessible property because of a long-term disability, other housing options may also be available.
Staircasing
OPSO buyers can staircase up to a maximum share of 75%. No rent is payable on the remaining 25% after that point, although service charges and other costs may continue.
The cost of staircasing is based on the property’s value at the time you buy the additional share. Valuation, legal and administration costs may apply, so these should be included in your financial planning.
Inheritance planning
A Shared Ownership property can form part of your estate, but the lease, ownership share and OPSO occupancy rules may affect what happens after an owner dies.
If inheritance arrangements are important to your decision, ask a solicitor to review the lease and explain the position based on your circumstances. This should be done before you commit to the purchase.
Shared Ownership considerations for younger buyers
Shared Ownership can help some younger buyers purchase a home with a smaller deposit than they would need to buy the whole property. It still involves a long-term financial and legal commitment.
Plans to move
Consider how long the property is likely to meet your needs. If work, family or personal circumstances could lead you to move, check the provider’s resale process before buying.
When you sell a Shared Ownership home without owning 100%, you must normally tell your landlord. The lease may give the landlord a nomination period in which to find an eligible buyer. A valuation and selling fees may also apply.
Costs beyond the deposit
Your budget may need to cover more than the deposit and mortgage.
Depending on the property, costs may include:
- A reservation fee
- A deposit on the share you are buying
- Mortgage repayments
- Rent on the landlord’s share
- Solicitor and mortgage fees
- Stamp Duty Land Tax, where applicable
- Service charges
- Estate charges
- Management fees
- Buildings insurance
- Payments into a repairs reserve or sinking fund
- Moving and furnishing costs
The charges differ between properties. Read the key information document and ask for a full cost breakdown before paying a reservation fee.
Mortgage term
The mortgage term available to you will depend on the lender, the amount borrowed and your personal circumstances.
A longer mortgage term may reduce the scheduled monthly mortgage payment, but it can increase the total interest paid over the life of the mortgage.
A mortgage adviser can explain the available terms and assess the combined cost of the mortgage, rent and property charges.
Future staircasing
If you hope to buy more shares, check which staircasing options are included in the lease.
The price of each further share will usually be based on the property’s value when you staircase rather than its value when you first bought it. You may also need to pay valuation, legal and administration costs. Do not base your plans only on an expected increase in earnings.
Benefits of Shared Ownership
Depending on your circumstances and the property, Shared Ownership may offer:
- A route into home ownership for eligible applicants who cannot afford a suitable home outright
- A deposit based on the share you buy rather than the full property value
- The option to buy further shares where the lease allows it
- Access to OPSO for eligible buyers aged 55 or over
- Access to properties designed to meet specific needs for some people with long-term disabilities, where available
The financial benefits will differ by household and property. Compare the full monthly and long-term costs rather than looking at the mortgage payment alone.
Costs and restrictions to check
Ongoing payments
Shared owners may need to pay a mortgage, rent, service charges, estate charges, management fees and contributions towards future major works. Charges can change over time, subject to the lease and applicable rules.
Ask for the property’s key information document and an explanation of how each charge is calculated.
Repairs and maintenance
Shared owners are generally responsible for repairs and maintenance, but the exact position depends on the property, lease and any scheme-specific protections.
Some costs may be covered by a building warranty or by the landlord where the lease includes an initial repair period. Ask your solicitor to explain repair responsibilities, reserve funds and possible major works costs before you exchange contracts.
Leasehold terms
Shared Ownership homes are leasehold properties. The lease sets out your rights and responsibilities, including rules covering:
- Repairs
- Alterations
- Subletting
- Staircasing
- Charges
- Selling the home
Read the lease with your solicitor and raise any concerns before committing to the purchase.
Selling the property
You can sell a Shared Ownership home, but the process depends on how much you own and the terms of the lease.
If you own less than 100%, the landlord will normally have an opportunity to find a buyer during a nomination period. You may need to pay for a valuation, legal work and a landlord’s selling fee.
Check the key information document and lease for the process, timescales and costs that apply to your home.
Is Shared Ownership right for your age and circumstances?
Age alone does not determine whether Shared Ownership is suitable. You will also need to consider eligibility, mortgage availability, monthly costs, future housing needs and the terms attached to the individual property.
Before reserving a home:
- Confirm that you meet the eligibility criteria
- Ask for the key information document and full cost breakdown
- Check any age, local connection or occupancy restrictions
- Speak to a qualified mortgage adviser about affordability
- Ask a solicitor to review the lease
- Check the maximum share you can own and the rules for selling
- Make sure the property meets your expected longer-term needs
Taking these steps will give you a clearer basis for deciding whether Shared Ownership is the right option for you.
