Guildford Borough Council - Shared Ownership Housing

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Welcome to Guildford Borough Council Shared Ownership Housing
What is it? Shared Ownership is a method of getting your first step on the property ladder. It enables people who cannot afford to purchase a property on the open market to buy part of a property, with a housing association or the local authority owning the remaining share. You pay rent to the landlord calculated on the amount of the property that you do not own.

	What shares can I buy initially ? You are expected to buy the largest share you can reasonably afford. With local authority properties the minimum amount that you can purchase is 30%. With housing associations this can vary and is more often 50%.

What are the costs? The initial costs are broadly the same as if you were purchasing on the open market. You will therefore need to employ a solicitor, commission a survey, pay stamp duty, and pay mortgage fees. It is also advisable to have enough savings for a mortgage deposit of 5% of the amount that you will be borrowing. It is suggested that you will need a minimum of £3000 - £4000 to meet these costs. On a monthly basis you will have the following costs;
	How are properties allocated? When a property becomes vacant it will be normally be offered to the applicants who have been on the waiting list for the longest period of time. Applicants will not be restricted to one offer of accommodation.

Further shares and moving on. It is possible to purchase additional shares in your home. The price paid for further shares is based on the open market valuation of the property at the time you wish to purchase more shares. (i.e. If the property is valued at £100,000, purchasing an extra 10% will cost £10,000). If you purchase 100% of the property you can usually sell it on the open market. If you own a percentage of the property and wish to move the local authority will often have first refusal on re-purchasing the property. This will be at the current market valuation.