Shared Ownership has developed through three broad models: older Shared Ownership, the previous standard model and the new model. The main differences are the minimum initial share, original lease length, staircasing options, repair arrangements and the housing provider’s nomination period when an owner wants to sell.
In brief, older and previous standard models commonly started with a minimum 25% share, while qualifying new-model homes can start from 10%. The new model also introduced 990-year leases when granted from new, standard staircasing from 5%, an annual 1% staircasing option for eligible leases and an initial repair period.
The model applying to a property may depend on the funding or planning rules in place, its location and whether it was provided through a particular form of Shared Ownership. The property’s lease and any Key Information Documents provided will confirm its individual terms.
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What is Shared Ownership?
Shared Ownership allows you to purchase a percentage share in the value of a home and pay rent to the housing provider on the share you do not own. You enter into a Shared Ownership lease, which sets out your rights and responsibilities and those of the housing provider.
You may be able to buy further shares after purchasing the home. This is known as staircasing. As your share increases, the rent charged on the remaining share will usually reduce. Your lease will confirm the minimum additional share you can purchase and whether there is a limit on the percentage you can own.
How Shared Ownership models differ
Older-model homes commonly started with a minimum share of 25%, had leases issued for 99 years from new and required further shares to be purchased in increments of 10% or 25%.
The previous standard model retained the 25% minimum initial share. Its leases were issued for at least 99 years from new but were typically at least 125 years, while standard staircasing was usually available in increments of 10%.
Qualifying new-model homes can offer an initial share from 10%. The model also introduced:
- Leases of at least 990 years when granted from new
- Standard staircasing from 5%
- Annual 1% staircasing for the first 15 years under eligible leases
- An initial repair period
- A standard four-week nomination period when selling
These are general features of the three models. The individual lease takes precedence if its terms differ. Separate arrangements can apply to Older Persons Shared Ownership, Home Ownership for People with Long-Term Disabilities and homes in a Designated Protected Area.
Older-model Shared Ownership
Older-model Shared Ownership refers broadly to homes provided through earlier affordable housing programmes. The terms can differ because various leases and funding requirements have been used over time.
Minimum initial share
The minimum initial purchase under older models was commonly 25%. For a home valued at £300,000, a 25% share would be worth £75,000.
The share available to a buyer would still depend on the property’s terms and the affordability assessment.
Lease length
Older Shared Ownership leases were typically issued for 99 years from new. The remaining term reduces over time, so a buyer considering an older resale should check how many years remain on the lease rather than relying on its original length.
The remaining term may be relevant when the owner wants to staircase, remortgage or sell. A solicitor or licensed conveyancer can explain the position for the individual property, while a mortgage adviser can explain any lender requirements.
Staircasing
Older leases may require further shares to be bought in increments of 10% or 25%. An owner may therefore need to purchase a larger additional share than someone whose property operates under the new model.
Some leases restrict the maximum share that can be owned. Restrictions can apply to properties intended for older buyers or homes in protected rural areas where affordable housing arrangements need to be retained.
Repairs and service charges
Older-model leases do not include the initial repair period introduced with the new model. Responsibility for repair and maintenance costs will depend on the lease and the type of property.
If the property is an apartment, a service charge is also likely to apply. The lease and property information will explain which services and costs are included.
Selling an older-model home
An older lease may give the housing provider a nomination period of eight or twelve weeks. During this period, the provider can try to find an eligible buyer for the owner’s share.
The lease will confirm the nomination period and explain the options available if a buyer is not found.
The Previous Standard Shared Ownership Model
The previous standard model retained several features associated with older Shared Ownership, including a minimum initial share of 25%. It commonly offered longer original lease terms, standard staircasing in 10% increments and an eight-week nomination period.
Individual properties can still have different terms, particularly where a specialist model or approved lease variation applies.
Minimum initial share
Buyers typically purchased an initial share of at least 25%. The share purchased could be higher depending on the affordability assessment and the terms applying to the property.
Lease length
Previous standard-model leases were issued for at least 99 years from new but were typically at least 125 years. A resale buyer should check the remaining term, which will depend on when the lease was originally granted.
Staircasing
The minimum standard staircasing purchase was usually 10%. The price of an additional share is generally based on the property’s market value when the owner staircases, not its value when the home was first purchased.
A current valuation, legal work and mortgage arrangements may be required. Owners should check their lease and the housing provider’s current process before applying.
Repairs and service charges
The previous standard model did not include an initial repair period. The lease and property information set out the owner’s responsibilities for repairs, maintenance and service charges.
Selling the home
The housing provider’s nomination period under the previous standard model is commonly eight weeks. This gives the provider an opportunity to find an eligible buyer before other sale arrangements are considered.
The lease will explain the process and the options available after the nomination period ends.
The New Shared Ownership Model
The new model was introduced for qualifying Shared Ownership homes funded through the Affordable Homes Programme 2021 to 2026. Its model leases and Key Information Documents have continued under the Social and Affordable Homes Programme 2026 to 2036.
Not every newly built or recently advertised property uses the new model. Buyers should check the Key Information Documents for the individual home before assuming that its features apply.
For more detail, read the Guinness Homes guide to the new Shared Ownership model.
Initial shares from 10%
Qualifying new-model homes can offer an initial share from 10%, compared with the 25% minimum associated with the previous standard model.
Buying a smaller share can reduce the mortgage and deposit needed for the purchased portion. It also leaves a larger percentage of the home on which rent is payable. The initial share should therefore be considered alongside the rent, service charge and other ongoing costs.
The availability of a 10% initial share does not mean every buyer will purchase that amount. The share a buyer can purchase will depend on the property, the affordability assessment, available funding and the applicable scheme requirements.
Leases of at least 990 years
A new-model Shared Ownership lease granted from new has a minimum term of 990 years. The property remains leasehold, and the rights, costs and responsibilities written into the lease continue to apply.
Standard staircasing from 5%
The new model reduces the minimum standard staircasing transaction from 10% to 5%. This can allow an owner to increase their share in smaller steps.
The price will normally be based on the property’s current market value. A valuation and other professional costs may apply, depending on the transaction, lease and housing provider’s current requirements.
Annual 1% staircasing
Eligible new-model leases allow the shared owner to purchase an additional 1% each year for the first 15 years of ownership. This is separate from standard staircasing and uses the valuation method applying to the scheme.
The option does not continue indefinitely and is not a standard feature of older or previous standard-model leases. Shared owners should check their lease and current provider guidance to confirm whether the option is available.
Initial repair period
Qualifying new-model homes include an initial repair period that will usually last for ten years and applies while the shared owner owns less than 100% of the property.
During this period, the housing provider is responsible for the cost of certain qualifying repairs under the lease. Other costs and responsibilities may continue to apply, including service charges.
Financial support may also be available towards specified repairs inside the home, subject to an annual limit, eligibility requirements and the terms applying to the property. This does not mean that every repair or maintenance cost will be covered.
Check the lease, Key Information Documents and current Guinness Homes guidance before arranging work or making a claim.
Four-week nomination period
The standard new-model lease commonly gives the housing provider a four-week nomination period in which to try to find an eligible buyer for the owner’s share.
Any further resale or repurchase arrangements will depend on the lease and the circumstances of the property. The housing provider cannot guarantee that it will find a buyer during the nomination period or purchase the share itself.
Why the Shared Ownership Model Matters
The model applying to a property can affect:
- The minimum initial share available
- The original and remaining lease length
- The minimum additional share that can be purchased
- Whether annual 1% staircasing is available
- Whether an initial repair period applies
- Repair and maintenance responsibilities
- The provider’s nomination period when the home is sold
- Whether ownership can increase to 100%
Two apparently similar properties can therefore work differently. A newly built home operating under the new model may have different lease, staircasing and repair terms from a resale governed by an older lease.
How Can You Identify the Shared Ownership Model?
The model cannot always be identified from the property’s age or description alone. It may depend on the funding or planning rules in place, its location and whether it was provided through a particular form of Shared Ownership.
Check any Key Information Documents provided for details about:
- The Shared Ownership model
- The minimum initial share
- The original and remaining lease length
- Standard and annual staircasing options
- Any restriction on the maximum share
- Repair and maintenance arrangements
- The nomination period
- Rent, service charges and other property costs
Key Information Documents provide standardised information about the home, the Shared Ownership arrangement and its costs. They support the buying decision but do not replace the lease.
A solicitor or licensed conveyancer with Shared Ownership experience should explain the lease before the buyer commits to the purchase. Independent financial advice can help the buyer assess the mortgage and ongoing affordability.
Checks for existing shared owners
Changes introduced by the new model do not automatically alter an existing older lease. The options available to an existing shared owner will normally remain governed by the lease signed when the property was purchased.
Before staircasing or selling, check:
- The minimum additional share that can be purchased
- Whether ownership can increase to 100%
- The valuation requirements
- The nomination period
- Repair and maintenance responsibilities
- Applicable fees and professional costs
Guinness Homes customers considering a further share purchase can read the staircasing guidance for existing shared owners.
Checks when buying a Shared Ownership resale
A Shared Ownership resale is an existing property being sold by its current shared owner.
A buyer will usually need to purchase at least the share being sold. If the current owner holds a 40% share, for example, the buyer may need to purchase that 40% rather than choose a lower share offered at another development. The lease and sales process will confirm the available options.
A resale continues to be governed by its existing lease. Its lease length, staircasing options, repair arrangements and nomination period may differ from those offered with a new-model property.
The Main Differences Between the Models
The three broad Shared Ownership models can be summarised as follows:
- Minimum initial share: commonly 25% under older and previous standard models, compared with 10% for qualifying new-model homes.
- Lease length from new: typically 99 years under older models, at least 99 years but commonly 125 years or more under the previous standard model, and at least 990 years under the new model.
- Standard staircasing: commonly 10% or 25% under older leases, 10% under the previous standard model and 5% under the new model.
- Annual 1% staircasing: available for the first 15 years under eligible new-model leases, but not a standard feature of earlier models.
- Initial repair period: available with qualifying new-model homes, but not under older or previous standard-model leases.
- Nomination period: commonly eight or twelve weeks under older leases, eight weeks under the previous standard model and four weeks under the standard new-model lease.
These are general features. The lease and property-specific information take precedence if their terms differ.
Understanding the Model Before Buying
The Shared Ownership model affects the share available at the start, the options for buying more shares, repair responsibilities and the process followed when the owner wants to sell.
No model should be assessed by one feature alone. A lower initial share may reduce the mortgage needed for the purchased portion, but it also leaves a larger share on which rent is payable.
Read any Key Information Documents provided before making a commitment. Ask your solicitor or licensed conveyancer to explain the lease, especially:
- The remaining lease length
- Staircasing provisions
- Repair responsibilities
- The nomination period
- Restrictions on owning 100%
- Rent, service charges and other ongoing costs
This article provides general information about Shared Ownership in England and reflects guidance available at the date of publication. It is not legal, mortgage or financial advice. Shared Ownership terms, costs and processes vary between properties and leases and may change over time. Read the information provided for the individual home and obtain independent legal and financial advice before making a commitment.
Last reviewed: September 2026
