Home ownership frequently asked questions

Shared ownership is a government-backed initiative that helps people buy a home who can't afford to do so on the open market. Often referred to as part-buy, part-rent, shared ownership is one of the most affordable home ownership options.

Shared ownership offers the chance to buy a share of a property, usually between 25% and 75%, while paying a subsidised rent on the remainder. This rent is usually set at 2.75% (per annum) of the share you don’t buy; this is broken down into 12 monthly payments and is called rent.

Shared ownership is a form of leasehold ownership where you own the share that you buy, and the remainder belongs to CHP. You’ll have a lease for the property, which is a legal contract between you and us, that will outline your rights and responsibilities as a shared owner. The original lease length will usually be for 99, 125, or 990 years.

You’ll be able to sell your home to a new buyer whenever you want, and further shares can be bought at any time; this is known as staircasing.

The monthly mortgage payment, rent, and service charge can sometimes work out to be cheaper than privately renting, and shared ownership offers the long-term security of owning a home. It’s a good idea to work out your own calculations and comparisons depending on where you’d like to live. A mortgage advisor can help you work through these calculations and suggest what share to buy based on your income, outgoings and the amount you have in savings to be used as a deposit.

A 5-10% mortgage lender deposit is required for the share value being bought which, in the current market, makes it possible to own a home through shared ownership. This is because deposit amounts for shared ownership are much lower than those required on the open market. Shared ownership deposits are based on the share of the home being purchased rather than the full market value.

Shared ownership is designed for people who can’t afford to buy a home on the open market. It’s popular with first-time buyers but is also available for existing homeowners who are in the process of selling.

Key eligibility criteria:

• Income limit: Maximum household income of £80,000 outside of London and £90,000 if buying in London.
• Ownership status: You can’t already own a home or have an interest in another property (unless being sold).
• Financial standing: You must demonstrate the ability to pay rent, mortgage, and service charges, usually with a 5-10% deposit.
• Employment: Often, you need to be in permanent employment, though self-employed individuals can be considered.
• Location/Priority: Some homes have local connection requirements and/or priority is given to Ministry of Defence (MOD) personnel.

For further information about eligibility and priority groups, please see the government criteria.

Buying a home through shared ownership with CHP is a practical and affordable way to take your first step onto the property ladder.

Whether you’re buying for the first time or stepping back into homeownership, having the right documents ready can help make the process smoother and faster.

Shared ownership offers a flexible path to home ownership, and good preparation can make all the difference. In this section, we’ll walk you through everything you need from application through to legal completion.

1. Proof of identity and address

As part of your shared ownership application, you’ll need to provide official proof of your identity and current address. You’ll need to supply:

• A valid UK passport or driving licence.
• A recent utility bill, bank statement, or council tax bill dated within the last three months.

2. Proof of income and employment

To make sure shared ownership is affordable for you, we’ll ask you to complete a full financial assessment with a mortgage advisor from our panel. This helps determine the share you can buy and what your monthly payments are likely to be.

You’ll need to provide:

• Your last three months’ payslips.
• Your most recent P60.
• At least three months of personal bank statements showing your salary payments.If you’re self-employed, you’ll need your latest SA302 forms and two years of certified accounts prepared by an accountant. These documents help us assess your income stability and affordability.

3. Evidence of savings or deposit

You’ll also need to demonstrate that you have enough funds to cover your deposit, legal fees, and other purchase-related costs. Being prepared with this information shows that you’re financially ready to move forward.

Our panel mortgage advisor will collect your financial documents and proof of identity.

Typically, you’ll need to provide:

• A recent savings account statement showing your available balance.
• A gifted deposit letter (if applicable), for example from a parent or close family member.
• Most lenders require a deposit of around 5–10% of the value of your share, although this can vary. Remember to factor in additional expenses such as solicitor fees and removal costs.

4. Mortgage in Principle (MIP)

A MIP is an important step in the shared ownership process. Issued by your lender, it outlines how much they may be prepared to lend based on an initial financial assessment. While it’s not a formal mortgage offer, it demonstrates that you’re in a position to proceed.

Ideally, you should obtain your MIP before reserving a property, as this can speed up the process and show you’re ready to move forward. If you need support, we can recommend independent mortgage advisors who specialise in shared ownership.