Shared Ownership FAQs
If you have a case in mind, but want to find out more, we’ve answered some frequently asked questions about our Shared Ownership mortgages below. You can find out more about our range of products on our Shared Ownership product page or about criteria on our Shared Ownership criteria page
Please note: We only accept Shared Ownership applications where the property is through Home Reach. Any applications made where the property is not through Home Reach will not be progressed.
What is Shared Ownership?
Shared Ownership is a part of the Government’s affordable housing initiative which gives buyers the option to purchase a share of a new home (between 25% and 75%) from a housing association, paying rent on the remaining share they don’t have ownership of.
Also referred to as ‘part buy – part rent’, the scheme could be suitable for those who want to buy a home but can’t make up the full deposit.
Please note: We only accept Shared Ownership applications where the property is through Home Reach.
Who can buy a home with Shared Ownership?
We only accept Shared Ownership applications for clients purchasing through Home Reach.
Clients can buy a home with Shared Ownership if their household earns £80,000 a year or less (£90,000 a year or less in London) and any of the following apply:
- They are a first-time buyer and unable to find a suitable home on the open market
- They used to own a home, but cannot afford to buy one now
- They are an existing shared owner
- The home is available through the Home Reach Scheme
Please note: Additional eligibility criteria applies, please visit the Home Reach website to find out more.
For more information about our criteria, please visit our Shared Ownership Criteria page.
What is Home Reach?
Home Reach gives buyers the option to purchase a share of a new home, paying rent on the rest with ‘part buy – part rent’ home ownership. Opening up the possibility of owning a home to buyers who could have previously been excluded, clients looking to find a Shared Ownership property through Home Reach can see what’s available and register their interest by visiting www.homereach.org.uk.
How can my client purchase a Shared Ownership property?
The buying process for Shared Ownership properties is largely the same as purchasing any other property, with just a few differences.
Your client would view the property, and if it was right for them, take the next step in securing it which involves a financial assessment by Home Reach using a calculator which is maintained by Homes England.
The calculator takes into account lots of different factors that will give them an indication of what share size they will be expected to buy, and the percentage which they will pay rent on.
Once your client has been given this information, the next step is to find a mortgage and instruct a solicitor.
How can my client apply for a Marsden Shared Ownership mortgage?
Shared Ownership mortgages with the Marsden are available to advisors whose clients are using the Home Reach scheme.
Once your client has found a Shared Ownership property and has been given an indication of the shares they’re expected to buy, they can reach out to a mortgage advisor.
If your client is looking to purchase a property using this scheme, you can find our range of available products on our product portfolio, available to download on our Shared Ownership product page.
Clients cannot apply directly to the Society. All applications must be made through an advisor.
Can my client buy more shares of their home?
Your client can buy more shares of their home once they become the owner. This is called ‘staircasing’. Additional shares are normally available in minimum increments of 10%.
The property will need to be valued using a RICS valuation to determine the cost of the new share. Please note, a RICS Valuation Fee will be applicable each time your client wants to buy new shares.
When the valuation has been confirmed, your client will need to pay for the additional shares. This can be done by a further advance on their current mortgage, or by remortgaging with additional borrowing.
Is there an affordability calculator for Shared Ownership mortgages?
Yes, we have an affordability calculator for you to check your client’s affordability for a Shared Ownership mortgage here.
What happens when my client wants to sell their home?
Unless your client owns all the shares in their home, the housing association will usually have the right to buy the shares from them. This is known as ‘first refusal’. The housing association also has the right to find a buyer for their home.
If the housing association doesn’t exercise their right to ‘first refusal’, or doesn’t have a buyer for the home, the buyer can advertise the property through an estate agent. They are able to sell the property for the share they own, which will be bought by a new owner on a Shared Ownership basis.
If the buyer owns 100% of their home, they can sell it with no restrictions from the housing association.
For Home Reach there is a nominations period in the lease, which sets out a timeframe for Heylo Housing to help find a buyer to purchase the share.
Once this time has passed, your client will be able to place the property for sale on the open market for both the share or 100%.
Please direct your clients back to Heylo Housing for more information and guidance on how to sell.
What is the maximum share size you’ll lend to?
We’ll lend to those looking to purchase up to 75% of a Shared Ownership property.
What is the maximum loan size available for a Shared Ownership mortgage?
The maximum property value for our Shared Ownership mortgage is £500,000, so we’ll lend up to a maximum of £375,000.
What documentation does my client need to provide?
You can download a copy of our documentation checklist which lists all the requirements for Shared Ownership applications.
Can I submit mortgage applications online?
Yes, you can submit an application using Intermediary Online.
You’ll need to register to use the platform, but you’ll be able to create and edit applications, upload documentation and receive notifications at each stage of the process.
Can I download intermediary mortgage application forms?
Yes, you can download a mortgage application form on our Downloads page.
We can accept applications and supporting documents via email in the first instance at email@example.com but the original application form will need to be posted to our Principal Office address; Marsden Building Society, Principal Office, 6-20 Russell Street, Nelson, BB9 7NJ.
Do I need to register to submit an intermediary mortgage application form?
No – there is no need to pre-register if you’re applying via paper application, we will use the information provided when you submit your first application with us.
If you want to submit your application online, you will need to register for our Intermediary Online service.