SHARED OWNERSHIP
Shared Ownership
It’s important to have a greater range of solutions for all potential homebuyers, especially for those who may have smaller deposits. Shared Ownership (also known as ‘Part Own, Part Rent’) is all about giving your clients more options when it comes to getting onto the property ladder.
Customers with smaller deposits may be able to buy a home through the Shared Ownership scheme if they don’t have the whole deposit or can’t meet the full monthly mortgage payments for a home that meets their needs. It means they own a share of a property, rather than the whole property.
Our Shared Ownership range is available for properties with an EPC rating of A-C, with mortgages available up to 95% of the share being purchased, subject to a maximum 75% LTV of the open market value of the property.
There are some eligibility requirements we need to check before we can consider your client’s request.
Eligibility requirements
Maximum 95% of purchased share, subject to maximum 75% LTV against open market value
Purchase only
For properties with EPC rating A-C
Self employed 12 months minimum trading acceptable
No minimum credit score
Minimum loan £25,001
Maximum loan £405,000
Up to 40 year term
RL0 and RL1 products only
Capital & Interest repayment only
No defaults or CCJs in the last 36 months
Outside of London, annual household income must be less than £80,000
In London, annual household income must be less than £90,000
In Wales, annual household income must be less than £60,000
Up to 2 missed payments on each unsecured credit agreement considered
Telecommunication and utilities defaults are not considered adverse credit
Arrears on unsecured credit balances under £500 are ignored
Help
Find out all you need to know for you and your clients with our helpful Residential Criteria Guide and within our Shared Ownership FAQs below.
Usually between 25% and 75% of the properties open market value (although this can be as low as 10% for some homes) can be purchased - with rent being paid on the remaining share which is owned typically by an approved Housing Association or other registered scheme providers.
We’ll accept Shared Ownership scheme providers registered in England and Wales with the Homes and Communities Agency (Homes England), the Welsh Assembly (Shared Ownership-Wales), and Registered social landlords.
As your client is buying a share of the property, they will only need a deposit based on that share, as opposed to full market value. At TML, we will consider lending with a 5% deposit of the share being purchased. Depending on the share bought, this could significantly reduce the deposit needed when compared to a standard property purchase.
To be eligible for the Shared Ownership scheme, household income must be £80,000 a year or less (£90,000 in London & £60,000 in Wales). Customers must also be either first-time buyers, or previous homeowners, who cannot afford to buy a property with a standard mortgage. Arrangements must be through a registered Housing Association or other registered scheme providers. At present, TML Shared Ownership mortgages are available for purchase only.
Great! We'll be happy to help, you can find your local BDM on our website. Alternatively, you may wish to contact our Business Development Hub on 0344 257 0418
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