Shared ownership for the elderly
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
Shared ownership for the elderly is a new HomeBuy scheme to enable people aged 55 and over to buy a home on a shared ownership basis.
Who is eligible?
This scheme is for people aged 55 and over with a household income of less than £60,000 per year. You may be eligible if you are:
• a council or housing association tenant, or
• a first-time buyer.
What homes are included?
The scheme includes newly built flats and houses in certain developments across England. Your local HomeBuy agent should be able to answer any questions you have about what’s available in your area.
How does it work?
This is a shared ownership scheme – you buy a share of the property and you pay rent on the landlord's share. You have to buy a minimum share of 25 per cent of your home, but can buy anything up to a 75 per cent share in the property.
After your initial purchase, you can increase your share of the property. When you have increased your share in the property to 75 per cent, the landlord stops charging you rent.
It is important to be aware that people who buy leasehold properties have to pay service charges for repairs and improvements. You will also have to pay for all the other costs of owning a home.
What if I want to sell?
When you come to sell the property, your landlord has the chance to buy it back from you. The property will still be sold at the full market value, and you will benefit from any increase in value on your share. If the landlord decides not to buy the property, you will be free to sell it on the open market.
The proceeds of the sale will be split between you and the landlord according to the proportions you own. For example, if you own the maximum 75 per cent of the property, you will get 75 per cent of the proceeds of the sale, and your landlord will get 25 per cent.
Want to know more?
For more information, see our page about home ownership schemes. To find out more about the schemes, properties available in your area or to apply, contact your local HomeBuy agent, or First Steps agent if you live in London.
Where can I get advice?
It is important to get independent financial advice before you decide to go ahead with any property purchase. An independent financial adviser will be able to help you choose the best scheme for you and work out what you can realistically afford. Independent financial advisers should be registered with the Financial Services Authority. They usually charge for their services.
Alternatively, your local advice centre may be able to help you. Use our directory to find one.
