About Shared Ownership
Struggling to get on the housing ladder? Eastlight is committed to helping people own their homes. Our part-buy part-rent homes are an affordable alternative to buying on the open market.
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What is Shared Ownership?
The scheme means you can buy a share of an Eastlight home with a mortgage and then pay rent on the remaining part.
This makes Shared Ownership a viable, affordable alternative for people who want to get on the housing ladder, but can't afford a full deposit.
You can then purchase extra shares when your income allows – this is called ‘staircasing.’ Full details on initial share percentages will be included in the home's advert, alongside the ‘Key Information document’ available for all plots.
Read our Shared Ownership Policy
Why is Shared Ownership more affordable?
The deposit required for purchasing a Shared Ownership home is much lower than that required for a home on the open market. This is because it only relates to the share you are purchasing. For example:
|
|
Value |
Shared Ownership (40% share example) |
Deposit (10% example) |
|
Open Market |
£300,000 |
N/A |
£30,000 |
|
Shared Ownership |
£300,000 |
£120,000 |
£12,000 |
You will pay rent on the remaining shares of the home, which are calculated at 2.75%. This, along side the cost of a mortgage, is usually lower than that of an open market purchase. A cost comparison example is given below.
|
|
Value |
Share (40%) |
Deposit |
Mortgage cost (5% interest rate over 25 years) |
Monthly rent * |
Total |
|
Open Market |
£300,000 |
N/A |
£30,000 |
£1,578 |
N/A |
£1,578 |
|
Shared Ownership |
£300,000 |
£120,000 |
£12,000 |
£631 |
£413 |
£1,044 |
*Service charges apply to all homes, along with a rent increase each year.
Affordability checks will be completed for applicants to ensure the purchase is affordable. Purchasers are expected to purchase the highest shares available to them.
Frequently Asked Questions
You may be eligible if your household income is less than £80,000 a year, you have some funds for a deposit and legal fees but not enough money to own a home on the open market.
You cannot be registered on the deeds to another home when completing on a shared ownership sale.
If you would like to discuss your eligibility further, please contact shared.ownership@eastlighthomes.co.uk.
Once you have found a home you can register your interest with the ‘Contact us’ form on the plot's page or alternatively you can e-mail the Sales team at Shared.ownership@eastlighthomes.co.uk for further enquiries.
Once you have been approved for your home, a non-refundable £500 reservation fee will need to be paid to secure your plot. This will be deducted from the total sale of your home upon completion.
You will also require additional funds to cover the costs of your solicitors, mortgage advisor and any additional costs associated with the purchase.
At the point of completion, an apportionment of rent and one full month’s rent will be required.
All new build homes will have a 12 month warranty period. This is 12 months from when Eastlight take ownership of the home. Any defect issues should be reported to our customer services by emailing customer.services@eastlighthomes.co.uk or calling 0330 128 0330 (local rate).
End-of-year defect inspection will be arranged. Further information on this will be discussed upon viewing and completion on the home.
Yes, if you wish to sell, contact us and we will be able to advertise your home on Share to Buy.
If it remains unsold for eight weeks, then it can go onto the open market. Further details on re-sales and staircasing can be found here.
