Shared Ownership Step Ladder Just Got Easier

Published / Last Updated on 11/09/2020

New rules with effect from April 2021 for the Government’s Shared Ownership scheme make it easier for people to get on the property ladder.

Rules Before April 2021

Minimum initial shared ownership 25% e.g. on £150,000 valuation, the purchaser must have £37,500 (via deposit and/or mortgage), rent payable on 75% balance.

Minimum ‘step ladder’ payment of 10% to buy greater shares of the property.  On £150,000 valuation, that’s £15,000 needed to buy your next ‘step ladder’ share and that’s only if the overall property value has not increased.  If the property value has increased to say £200,000 then a 10% step ladder purchase is £20,000.

Rules From April 2021

Minimum initial shared ownership 10% e.g. on £150,000 valuation, the purchaser must have just £15,000 (via deposit and/or mortgage), rent payable on 75% balance.

Minimum ‘step ladder’ payment of 1% to buy greater shares of the property.  On £150,000 valuation, that’s just £1,500 needed to buy your next 1% ‘step ladder’ share or if the property value has gone up, 1% is easier than 10%.

This will give buyers a simpler, more affordable route to increasing their owned share.


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