Square Roots

HOW IT WORKS

We can help you understand and plan your purchase during your financial interview. Register your interest.

House Price Graph

Your Share


You start by buying a share of the property (usually between 25% and 75%) -  this helps to reduce the deposit and mortgage amounts you need to pay to get on the property ladder, as you are only borrowing what you can really afford.

Your deposit will be 5 – 10% of the share value you decide to buy, not the full market value of the whole property.

Paying Rent


You pay rent on the remaining share of the property you have not yet bought, but the rent is less than the rate charged on the open market.

You still live in the property as the sole occupier, no one else can buy or rent part of the same property you are living in.

Future Options


You can gradually “Staircase” and buy additional shares in your home until you own it outright.

The cost of the additional shares is based on the market value of the property at the time that you purchase the shares. If you increase your share in the property, your rent is re-calculated and reduced proportionately. This enables you the possibility to plan to fully own your home in the future. View our staircasing guide for more.

AFFORDABILITY CALCULATOR

To be eligible 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 and it cannot be a buy to let property.
  • You must be able to demonstrate that you have a good credit history (no County Court Judgements or bad debts) and can afford the costs and regular payments involved in buying a home.
Full Market Value:
£
Mortgage period
Years
Share Value
% / £
Deposit You wish to pay
% / £

Minimum Household income

MONTHLY COSTS

Mortgage

Rent

Total monthly cost

Disclaimer: Please note these monthly costs are an estimate and should be used as a guide only. Your mortgage is dependent on your lender agreement which will vary based on you personal circumstances and rent can vary per development and increase over time. 

These figures do not include the development service charge which must be factored into your monthly costs to evaluate your affordability.

FAQs

  • How much does it cost to buy through Shared Ownership?

    On top of your deposit for buying your new home, you will need to allocate money towards the buying process. Below is a rough estimation of the money you will need:

    Reservation fee: £500
    Solicitor fee: £1000
    Other legal disbursements: £500
    Mortgage valuation fee: up to £600
    Mortgage arrangement fee: up to £999 (this can sometimes be added to your mortgage instead)

    Stamp Duty: Depending on the value of the property, you may need to pay stamp duty. You have the choice of paying a single payment based on the total market value or paying in stages. If you pay in stages, there is no Stamp Duty until you own an 80% share in the property. Please speak to your solicitor for further details.

    For exact reservation fee it is best to ask your Sales Executive as it can vary based on the property you buy. Again, Solicitor fees can vary and it will depend on your personal needs, they can always estimate the fees required so ask upfront. Depending on your mortgage advisor you may have to pay them a fee, but there are free financial advisors available. Our Sales Executive will be able to recommend independent mortgage advisors if you require.
     

  • If I am self-employed, can I apply for Shared Ownership?

    You are eligible for Shared Ownership as long as you meet the other eligibility criteria, but you are likely to need a higher deposit  for your share. Your mortgage will also still be subject to the lender’s conditions and it is worth speaking to a Financial Advisor for the latest acceptable mortgage criteria.

    When completing our affordability checks we need to ensure of a stable income. If you are self-employed we will need to see audited accounts for the last two years and an estimate for the current year or the previous three years tax returns and SA302 statements.

    If you are in doubt, it is always worth speaking to us. We are happy to help and can refer you to a free Financial Advisor to check your affordability and mortgage options so you can understand what you can afford.

  • What if I want to sell my home?

    You can sell your home at any time. If you still own a % share of the property, the lease will note that Square Roots has exclusivity to sell the home for a certain period of time. This means we will try and find a buyer in the first instance. If this period ends and we have not found a buyer, you are free to sell your home on the open market. The amount of money you receive through the sale will depend on your % share in the property. But if the value of your property has increased since you bought, so will the value of the share you receive from the sale.

  • Can I have pets?

    Our developments are all pet friendly, but before you buy it is best to discuss this with your Sales Executive to understand the full terms, like any leasehold property there may be restrictions depending on the type and size of the pet to reduce the risk of disturbing other residents. 

  • Does my rent pay off the share I don't own?

    The monthly rent you pay does not contribute to increasing the share you own. This money is paid on the remainder of the property that you don’t own in the same way you would pay rent to a landlord, but it is at a reduced rate. You still have the benefits of a homeowner, it is your permanent place to live without a risk of end of tenancy (unless you do not keep up your payments). You can reduce your monthly rent by increasing the share you own in the property over time as your savings grow until you own 100%.

  • How do I increase my shares?

    This is known as “staircasing” and enables you to gradually increase the amount of the property you own once you have owned your shared ownership property for a certain period of time. Please view our STAIRCASING GUIDE for more information.

  • Do I 'own' the property?

    If you buy through Shared-Ownership, we are delighted to say this means you are considered a homeowner.

    This means You have the same rights and responsibilities as a a typical homeowner. You are responsible for all bills related to the home including service charge and ground rent as well as its general maintenance. You can decorate your home as you wish. As a leasehold property, it is advisable you check your lease before making any big changes as you may need to seek permission for certain items. If you are looking to make structural changes such as moving a wall, you must get our approval first.

  • How does Shared Ownership compare to Help to Buy: Equity Loan

    Both Help to Buy and Shared Ownership are government backed schemes that have helped thousands of people get on the property ladder.

    Shared Ownership – this is a part-buy, part-rent scheme that allows you to secure your home with a much smaller deposit. You only put down a deposit for the share you a buying, not the whole property. The minimum % of your home you can buy is usually 25% and the maximum initial amount you can buy is 75%. The beauty is you can buy more later when your savings have grown and you are in a position to afford a bigger share. As your share increases, your monthly rent with reduce because you own more of the property. You  can be a first-time buyer or homeowner, as long you selling your property before buying through Shared Ownership.

    Help to Buy: Equity Loan – This scheme is for first time buyers only and helps keep your mortgage payments lower for the first 5 years. If you can pay a 5% deposit on the whole property value (and can be qualified for a mortgage on the full remainder), you could be eligable to borrow an equity loan from the government that is interest free for the first 5 years (20% loan outside of London, 40% loan in London). An equity loan is based on the value of the property. If you have a 20% equity loan and the value of your home increases, you pay back 20% of the new value. Your mortgage payments are lower because you only then need a mortgage for the remaining 75% (or 55% in London) of the property. If you are interested in Help to Buy, our parent company London Square has a number of developments available through the scheme and more information about the scheme.  VISIT LONDON SQUARE

  • Is Shared Ownership a good idea?

    Only you can decide if this scheme is a good idea for you financially. But we are happy to assist you in finding the best way for you to get on the property ladder with affordability checks and introducing you to an independent Financial Advisor. We always recommend looking at what options are available to you before making a decision. If it is something you can’t afford right now, you may be able to set up a plan to afford Shared Ownership in the future. 

  • Buying new build can be daunting, can I trust Square Roots?

    We bring with us the support and knowledge from our award-winning parent company London Square. For over a decade they have developed state-of-the-art homes, created successful communities where people want to settle and belong and have achieved multiple awards for customer service as well as design and build. We are backed with their expertise, enabling us to capitalise on the shared knowledge to build and create affordable quality homes that people actually want to live in. Each location is carefully chosen by our team while employing a bespoke approach to architecture, design, and residential needs specific to that location. For more information about London Square, please visit their WEBSITE.

Shared ownership
with square roots

Shared ownership with square roots

EXACTING STANDARDS – We’re meticulous in how we think and what we do. Carefully choosing where and what we build to ensure they are places people want to live.

SMARTER – Get on the property ladder sooner. Buy your new home with a smaller deposit and mortgage repayments and avoid renting someone else’s property. If your property value increase, so does the value of the share you own. Make your money work harder and invest in your future. 

SECURITY – No need to worry about the end of your tenancy contract. Buy with shared ownership and have the security and stability of your own home, with the ability to buy it outright in the future. Plus an award winning customer service team for the first two years when you move in. 

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