Government To Release New Model Shared Ownership Lease

The government is due to release its new model shared ownership lease, following on from a recent consultation that drew over 250 responses.

Shared ownership gives people the chance to buy a share in a property, thus reducing their upfront purchasing costs. The purchaser pays a mortgage on the share they own and pays rent to (commonly) a housing association but can also be a community-led housing group on the remaining share. The housing association/community-led housing group becomes the buyer's landlord on the unowned share.

This opens up the property market to those who cannot afford or borrow enough to buy outright on the open market. In this way, shared ownership corresponds to the stated government aim of offering a route into home ownership to those who would otherwise struggle to afford a home. It is not without controversy as ongoing costs (eg. service charge) do not necessarily reduce to reflect the part ownership.