Shared ownership schemes give buyers the opportunity to buy part of the property from the owner, and pay a reduced rent on whatever is outstanding.
Under this scheme, the buyer will usually buy between 25% and 75% of the property, leaving the landlord, usually the council or a housing association, to own and collect rent on the rest. The owner’s monthly payment will partly cover this rent and partly go towards the mortgage taken out to buy their share in the property.
Over time, the buyer can purchase a larger share of the property from the landlord until they own it outright. At this point they will continue to pay off the mortgage, but will no longer pay any rent.