Frequently Asked Questions

Shared Ownership is a scheme that allows individuals to purchase a portion of a property while renting the remaining share. This is a more accessible pathway to home ownership, as it usually involves the requirement of a smaller deposit.  

With new shared ownership homes, buyers can choose to purchase between 25% and 75% (or in some case 10% – 75%) of the property and pay rent on the remaining portion. With second-hand sales, buyers must purchase at least the amount that the current resident owns, or more, as they may be able to purchase an additional amount from Soha.  

You can apply for shared ownership if:

• your household income is under £80k;
• you do not own another property (although if you own a property which is being or about to be sold, you may still be eligible);
• you are not married to someone who owns another property;
• you have a good credit history;
• you can demonstrate that you can afford the regular payments and costs involved in buying a home;
• you have savings for at least 5% deposit on the share of the property you’re buying.

Finally, all prospective buyers will need to have a Soha affordability check with one of our panel advisors, to confirm we can reserve to you. This is to confirm you are eligible for shared ownership and can afford the property to our satisfaction and is done before we take your non-refundable £250 deposit. You may still use your own mortgage advisor for your mortgage application and processing.

Soha Housing Association is legally bound to comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, the Proceeds of Crime Act 2002 and the Terrorism Act 2000. We may therefore utilise electronic means of verifying customers’ identities.

If you will require a mortgage to purchase your property, it will need to be approved for shared ownership. Many lenders now offer mortgages that suit this product so there shouldn’t be a problem finding one. All of our buyers must pass an eligibility and affordability check before they begin proceedings, which is carried out by our specialist mortgage brokers. They can provide information on the best current mortgages for you, or you can source your mortgage yourself. 

There are two costs associated with Shared Ownership:

The initial costs to buy your new home:

• Reservation fee of £250 – Payable once you have a mortgage agreed in principle, Soha Home Ownership have accepted you as a buyer, and you have seen the property you want to buy. The fee is non-refundable and counts towards the purchase price of your property.
• Mortgage arrangement fees – Some lenders will charge you administration and booking fees. These costs vary from lender to lender and some Mortgage Brokers may also charge a fee. Ask your advisor for details.
• Valuation fee – Your lender will arrange this for you. The cost will vary depending on lenders and the purchase price of the property so you will need to ask your advisor for details.
• Legal fees – You will need a solicitor to complete the legal work involved in buying the property from us. Before you appoint your solicitor, they will give you an estimate of the fees you will have to pay (including their own fee, Land Registry and search fees, and other associated costs). Stamp Duty will apply if you are paying more than £125,000 for your share.
• Deposit – You will need a deposit as lenders won’t normally lend 100% of the share you are buying. The amount required for your deposit will vary from lender to lender but could be as low as 5% of the share. Typically, we suggest you will need in the region of £7000 to £10,000 to cover your deposit and legal fees. (Based on a 50% share and depending on the size and type of property you buy.)

On-going monthly costs of buying and running your home:

• Mortgage payments – These are calculated by the lender and vary according to interest rates.
• Rent – This is calculated on the share Soha Housing own and is reviewed in April each year by RPI + 0.5%.
• Building insurance – This is arranged by Soha Housing and you pay a monthly charge as part of the Service Charge.
• Service Charges – These vary depending on the type of property you buy (flat, maisonette or house) and may include the costs of regular services such as cleaning hallways, stair areas and grounds and buildings maintenance where appropriate.

Visit our Repairs and Maintenance page for details about what repairs you will be responsible for in your new home.

Soha have a dedicated team, the home ownership team, that are available to assist shared owners with any queries that they may have. They can be contacted through our customer services, or directly at Homeownership@soha.co.uk