Shared Ownership

Home Stepper

In partnership with Sage Homes, Home Stepper is a new homes shared ownership scheme, meaning you can buy a share of your chosen Linden Home and pay rent on the remaining amount.

Home Reach

MORE ABOUT HOME REACH

Linden Homes is working in partnership with Heylo to offer Home Reach, a shared ownership scheme on selected properties across the country.

Sage Homes

MORE ABOUT SAGE HOMES

Sage Homes built by Linden Homes are shared ownership properties for sale that allow purchasers to buy a share of their chosen home and pay a monthly rent on the remaining part.

What is shared ownership?

Shared ownership is a home buying scheme designed to make purchasing a home more achievable. Instead of purchasing the full property at once, you buy a share and pay a reduced rent on the rest.

Because you're only buying part of the home to begin with, the deposit and mortgage you need are usually lower. This can make it a helpful option if you're searching for a more manageable way to move into home ownership, without taking on the full cost straight away.

How shared ownership works

Shared ownership involves buying a share of your new home and taking out a mortgage on just that portion. It offers a more affordable route to home ownership than paying for the entire home outright with a commitment to a much larger mortgage. You usually need a minimum 5% deposit for the share you're buying. For the part you don't own yet, you pay a reduced rent at 2.75%, helping to keep monthly costs more manageable.

Over time, you have the flexibility to buy more of your home, if or when it suits you. This is called staircasing, and you can do it after you've completed your purchase. As your ownership increases, the rent you pay reduces, bringing you close to owning your home outright. The price of extra shares is based on the home's value when you choose to buy more.

Am I eligible for shared ownership?

Shared ownership schemes can be a great way to get on the property ladder. To apply, you need to meet the following criteria:

Your household income is £80,000 a year or less, or up to £90,000 in London
You have a minimum deposit of 5% of the share you're planning to buy
You plan to live in the home as your main and only residence
You're able to complete an affordability assessment with an independent financial advisor

Some schemes might have additional criteria, so it's worth checking. If you'd like any help understanding the requirements, or you have other questions, feel free to contact our team who will be happy to discuss our available schemes.

How shared ownership could benefit you

Shared ownership can make getting onto the property ladder feel more achievable. Here's how:

Lower deposit – You only pay a deposit on the portion of the home you're buying, making it easier to save and move in sooner.
More affordable mortgage – Your mortgage is based on the share you're purchasing, keeping monthly payments manageable.
Reduced rent – The rent you pay on the portion you don't own is at a discounted rate, which can help you save even more.
Flexibility to grow – You have the option to buy more shares in the home as your situation changes over time.

Things to consider with shared ownership

Before deciding on shared ownership, there are a few important things to keep in mind:

Yearly rent increase – Each year, the rent for the portion of the property you don't own will increase. We'll always keep you up to date, so you're fully informed on how this works and what to expect.
Service charge – No matter what share of your home you own, you'll have to pay a service charge.
Leasehold property – Shared ownership properties have a leasehold tenure, which means you won't own the land your new home sits on. Instead, you'll be leasing it for an agreed period with the freeholder. The length of the lease can be found in the key information documents on each of our shared ownership homes.
Repossession risk – If you miss any mortgage or rent payments, your home could be at risk of repossession. Your mortgage lender will help and support you along the way if these circumstances arise.
Home selling – When the time comes to sell, you'll need to go through the Landlord you purchased with (Sage Homes or Heylo) unless you own 100% of your home.

How to apply for shared ownership with Linden Homes

1. Get in touch: Start by registering your interest with us. We'll guide you step-by-step through the process. We'll arrange a meeting to talk through the relevant shared ownership scheme, show you available homes at developments near you and answer any questions you want to ask.
2. Check if you're eligible: We'll do some affordability checks to confirm the scheme suits your needs. We'll work closely with you to calculate the maximum share you can buy and the amount you'll pay in rent.
3. Find your new home: When we know you're eligible, we'll help you explore homes that match your budget. You'll be able to choose the one that feels just right for you and start making plans to secure it.
4. Reserve your home: After you've picked the new build home you want to buy, we'll work with the shared ownership scheme provider to reserve it for you. You'll need to provide a few documents, along with choosing a solicitor and mortgage broker to help you with your mortgage application.
5. Make it yours: To reserve your new home, we'll ask for a reservation fee to secure the property. We'll then guide you through the final steps, making sure everything's set for you to complete your home buying journey.

Is shared ownership available on all Linden Homes properties for sale?

We offer shared ownership on selected homes, and our friendly Sales Consultants are always on hand to guide you through our available properties. Feel free to contact us anytime – we're here to help you find the right home for your needs.

How much deposit do I need to put down on a shared ownership home?

For shared ownership, you'll only need a deposit on the share of the property you're buying, and this is typically just 5% of that share's value.

Do I pay Stamp Duty on a shared ownership home?

Yes, Stamp Duty does apply when you use a shared ownership scheme to buy a property through shared ownership, but the amount you pay depends on the share you're buying. Your solicitor will be able to calculate the exact cost for you and help you understand any allowances that could reduce the amount.

Is shared ownership cheaper than renting?

In most cases, shared ownership is more affordable than renting. Even though there are some upfront costs, your monthly payments will be lower because you'll pay a mortgage on the part you own and reduced rent on the part you don't. It's a great way to keep costs manageable while taking steps towards owning your own home.

Can I have pets in a shared ownership house?

Your pets might be able to live in a shared ownership home. It's up to the relevant scheme provider, so you'll need to reach out to them directly to find out and get consent.