Shared Ownership

Shared ownership – the basics

Shared ownership is a way to help people buy their own home.

Instead of buying it outright, you buy a share – typically 50% but in some instances as low as 35%. The freeholder owns the rest. That generally means you need a lower deposit and smaller mortgage to buy your home.
You then have to pay a monthly rent on the amount you don’t own. But instead of being a tenant, you’re a homeowner, with rights such as being able to keep pets or redecorate.
Then, when you’re ready to move, you sell your share – benefiting from any increase in the property’s value over time.

With Noah, you can also benefit from our Extra Rung scheme. Under this, when you sell your share, you can receive an extra 1% of the market value for every year you owned the home. Find out more about Noah’s Extra Rung.

Who is shared ownership for?

Shared ownership is a great way to take your first step on the property ladder. But it can also be a good option for people who need a bigger home for their family or those who want, or need, to downsize following a change in life circumstances.

Shared ownership is a tried and tested way of buying a property. It’s been around for decades, and many thousands of people have benefited from a shared ownership home.

Important: risks you should consider before buying a home via shared ownership

The value of your investment in your house can go down as well as up. You may get back less than the amount you invested.
Rent will increase over time, in line with the Retail Price Index. Increases will be applied annually and will be upward only.
There is no guarantee that the market price you receive for your share of the property when you sell it will match, or be in line with, the value of a 100% share of the property.
If you take out a mortgage to buy your share of the home, it will be your responsibility to pay the lender. Like any other mortgage, your home may be at risk if you do not keep up with your payments.