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What is shared ownership?

Buying a new home is a big decision that can come with many hurdles. We wanted to eliminate one of those hurdles for you by offering shared ownership apartments here at ARRO in West London. New build homes tend to offer a set of unique benefits compared to older properties, one of them being incentives such as Shared Ownership.

‘What is shared ownership?’ you may ask. Well, shared ownership is an alternative home-buying scheme that allows first-time buyers who’re unable to get onto the property ladder, a chance to do so. It allows you to purchase a share of your chosen property and pay rent on the rest of it. Shared Ownership is designed for people who might not normally be able to afford full and constant mortgage payments or couldn’t normally afford to put a large enough deposit down on a property, but still want the security that is synonymous with owning your own home. In most cases, you can then buy more of your home by increasing your share until you own 100%, which is known in industry terms as staircasing. Additional shares in your home tend to be available in 10% increments and this process will, in turn, reduce your rent payments.

Are you wondering how Shared Ownership Apartments work?

Now you know what shared ownership is, you’ll need to know how it works. With shared ownership apartments, such as these available at ARRO, rather than securing a mortgage for the entirety of the property, you do so usually for a minimum of 25% of it, with some exceptions that allow for up to 50% or even 75%, from a housing association such as ourselves, here at Catalyst. Once you’ve secured your share, you’ll be required to put down a deposit of between 5% and 15% of the value of your share. In addition to owning this portion of your shared ownership apartment, you’ll pay a subsidised rent on the remaining share so that covering the cost of the whole property is easier for you.

Shared ownership is a different, easier way for you to gain long-term stability by part-owning your home. By offering you the chance to have this stability and peace of mind, as well as additional bonuses such as a smaller deposit and the opportunity to sell any shares that you own at any time, buying a shared ownership apartment could be the easiest decision in your house buying process.

We wanted to make sure that there were more shared ownership properties for sale in West London. And that’s what we’ve done. The combined monthly costs of your rent and mortgage will normally be a lot less than buying a property on the open market – making ARRO an affordable and straight-forward way to get a foot on the infamous London property ladder.

Am I eligible?

  • You'll need a maximum yearly household income of £90,000
  • You'll need enough savings to cover your deposit (dependent on your mortgage and/or share of property).
  • You will need additional savings of £3,500 to cover legal fees and costs.
  • You must have sold or be about to complete on the sale of any existing property you may have.
  • If you own a property outright, you should have sold it before completing on a shared ownership property with us.
  • You must be a British/EU Citizen, or have indefinite leave to remain.
  • You may need to have a local connection to the property that you wish to buy, e.g. in some cases you may need to live or work in the Borough (we shall advise you on application).