Myth Busting Month: 5 Misconceptions about Shared Ownership

Myth 1: Shared Ownership Means You Physically Share Your Home with Someone

This isn’t true. The percentage of your home that you don’t own is kept by the housing association from which you purchased the property. Until you’re ready to increase your share and work towards fully owning your home, we look after the remainder for you. 

Myth 2: Shared Ownership is Exclusively for First-Time Buyers

Another common misconception is that Shared Ownership is solely for first-time buyers. While Shared Ownership often appeals to first-time buyers, anyone who meets the Square Roots eligibility criteria can apply for the scheme. 

To be eligible for Shared Ownership with Square Roots, you must meet the following criteria:

• You must be aged 18 or older.
• Your annual household income if buying inside of London must be less than £90,000 (less than £80,000 for outside of London).
• You will need to be a first-time buyer or be in the process of selling your home before buying your new home.
• You must buy the property to live in. It cannot be a buy-to-let property.
• You must be able to demonstrate that you have a good credit history (no County Court judgments or bad debts) and can afford the costs and regular payments involved in buying a home.

Myth 3: If Your Home is Part Rented, You Can’t Decorate

When you invest in a Shared Ownership apartment, you live in your new home as your own. You are free to paint and change the interiors as you please. However, you would need permission to make structural changes. 

Myth 4: You Can’t Fully Own Your Property

Shared Ownership is designed to make full homeownership accessible, helping first-time buyers place a deposit on their property. When you’re ready, you can grow the share you own in your home through a process called staircasing.

What is Staircasing?

Staircasing is where you buy additional shares in your property over time until you own 100% of the property. For example, if you started with a 25% share in your home and paid rent on the remainder, you can later invest in another 25% share and own a total 50% share in your apartment. 

Find out about the steps to staircasing your shared ownership property with Square Roots here. 

Myth 5: You Can’t Get a Mortgage for Shared Ownership Homes

The majority of mortgage providers do lend to Shared Ownership buyers, the same as if you were buying on the open market. What’s important is to show you can afford your mortgage payments through your financial history. Mortgage lending is determined using an affordability calculator that considers everything from deposit size to your income, outgoings and credit rating.