Buying a Shared Ownership home

Step 1: Confirming you are eligible

To start the process, you must complete the Shared Ownership Application Form (PDF 551KB). We will confirm if you are eligible for Shared Ownership.

We will then work with you to make sure:

• Shared Ownership is suitable for you
• you can afford the mortgage, rent and service charge

After this, we will contact you to talk about your recommended share value based on your individual circumstances. Government regulations mean you must buy the largest share you can afford. Find out more about the government regulations on Own Your Home.

Step 2: Assessing your finances

An independent financial advisor will complete a full financial assessment. They will look at your income and spending, and review your lending options to make sure you get the best mortgage deal.

They will confirm the final share value and the total monthly repayments for you.

You can speak to your own advisor or we can recommend one for you.

You will need to give them:

• proof of your income
• proof of your deposit
• a credit report

We will need to see a mortgage agreement in principle from your bank or mortgage lender that will show how much you could borrow.

You can now arrange a viewing.

Step 3: Arranging a viewing

You can now arrange a viewing for one of our properties and we can help you choose a suitable home.

These viewings may be in-person or online, depending on:

• where you want to live
• if we have built the home or not

During the viewing, we will talk you through the features of our new properties and answer any questions you have.

Step 4: Reserving your home

Once you have chosen a home, you must pay a £500 reservation fee. If you change your mind within 14 days, we will pay back the fee. If you change your mind after 14 days, we will not pay back the fee.

When you buy your home, we will deduct the £500 from your deposit.

You can call 0191 525 5620 to pay the reservation fee.

You will need to give us 2 forms of ID for you and anyone else buying the share with you. We will also need payslips and bank statements for the past 3 months.

Once we have your reservation fee, ID, payslips and bank statement, we reserve the home for you and start the legal side of the process.

We will send you a reservation document that has all the details.

Step 5: Choosing a solicitor

You will need a solicitor to complete your legal work. This usually costs between £1,000 and £1,500. You can arrange your own solicitor, or we can recommend some local law firms.

You must add your solicitor’s details to the reservation document we sent you when we reserved your home and send it back to us.

Step 6: Confirming the sale

Everyone involved should communicate directly with each other to arrange and confirm the sale. We will stay in contact with you to help everything run smoothly.

Memorandum of sale

Once we have your completed reservation document, we will give you and your solicitor a memorandum of sale. This is a summary of your sale and includes:

• the names of all buyers
• property details
• agreed sale price and share value
• our details as your home’s vendor
• solicitor’s details

Your mortgage

You will need to get the property valued when you apply for your mortgage. How much this valuation costs will depend on your mortgage lender and the agreed share value you are buying. Your mortgage advisor will confirm these for you.

Once your mortgage lender approves your mortgage and you complete all legal enquiries, your solicitor will ask you to sign your contract.

At this point, we will work with you to agree a date for you to complete buying your home and you will need to give your solicitor:

• the rest of your deposit
• between one and two-months’ rent and service charge, depending on what day we complete the sale

Exchanging contracts

Exchanging contracts usually takes 6 weeks after you choose your solicitor and instruct them to represent you. Your solicitor will complete local searches and legal enquiries during these 6 weeks.

Once we have exchanged contracts, the sale is legally binding.

Step 7: Showing you around your new home

Before you complete the sale, we will show you your new home, so you are familiar with it and the appliances before you move in.

This will be online or in-person.

Step 8: Completing the sale

On the agreed date, your mortgage lender will give your solicitor the value of your mortgage. Your solicitor will then send us:

• the value of your mortgage
• the rest of your deposit
• between one and two-months’ rent and service charge, depending on what day we complete the sale

As soon as we receive the money, the legal process is complete, and you officially own your share of your home.

When the legal process is complete, we will give you:

• your keys
• a National House Building Council handbook
• instructions for your central heating and appliances
• warranty application forms for your appliances

We will ask you to sign paperwork to confirm you have received all the keys and documents you need.

We will take final meter readings, so you are only paying bills from the moment the property becomes yours.

You must contact the council and utility providers to register accounts in your name.