New shared
ownership programme

In 2021 the Government announced some big changes to shared ownership. The changes make it even easier for people to buy a home through the scheme.

Our first shared ownership homes under the new programme were completed in summer 2023. There are some differences from the classic shared ownership programme. If you’ve bought one of our shared ownership homes, you’ll be able to find out which programme your home comes under by logging into MyGUHG.

Who’s eligible?

Shared ownership is for people who cannot afford to buy a home outright. Buyers need a 5-10% deposit for the share they’re buying. Purchases are dependent on being able to afford the rent and mortgage commitments, and your annual household income should be less than £80k.

What initial share can you buy?

You will be able to buy shares from 10% of the home’s full value.

The lease explained

All shared ownership homes are leasehold properties. Under the new programme, shared ownership leases will be offered with a lease term of 990 years. The term remaining on a lease is an important consideration for mortgage lenders. The value of a leasehold property decreases with less than 80 years remaining, which means that shared owners would have to pay for a lease extension when they want to sell their home. Having a lease term of 990 years offers shared owners greater security.

How much can I staircase by? 

Once you own a shared ownership home you can buy more of it – this is called staircasing. 

If you have bought a home on this programme, you can buy 1% more per year during the first 15 years of the lease.

You will be able to staircase in larger shares of 5% or more, but these will involve legal fees. There’s an additional method to calculate the current value of the home. This is an estimate using the original valuation and house price inflation. This valuation will be sent to shared owners once a year, or whenever they ask to buy an additional 1% of their home.

Who’s responsible for repairs?

There’s a 10-year period where Grand Union will provide support with the costs of essential repairs and maintenance. This ends when customers own 100% of their home. The 10-year period starts from the completion of building.

For apartment blocks, repairs to the exterior and structure that are not covered by warranty, are covered by the landlord.

For repairs to boilers, heating systems and bathrooms, customers can claim a repairs allowance to cover the cost. Claims are limited to £500 per year. Repairs will need to be reported to Grand Union first and, if approved, arranged by the customer. These repairs will need to be completed by an approved tradesperson. 

What do I need to know about selling a shared ownership property?

When selling shared ownership properties, Grand Union will look to find a buyer for the customer’s share of the home. This is called the nominations period and this will take four weeks. If we don’t find a buyer during this time, then customers can sell their share on the open market. The valuation still sets the price of the home being sold.

Right to shared ownership

People who are renting a home created by the Affordable Homes Programme will have the legal right to buy it using shared ownership. They must have been a social tenant for three years and have lived in the property for 12 months.