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About Shared Ownership

Shared Ownership is an affordable home ownership scheme.

What is Shared Ownership?

Shared Ownership was introduced to help people who can’t afford to buy a home outright because they can’t afford the full mortgage repayments, the deposit, or both. It enables buyers to own a share of their home with as little as a 5% deposit.

How does the scheme work?

I love having the security of owning a home without the full mortgage payments that usually come with a private sale home; this option is much more affordable.” Sonia Melot, home owner at Pembury Circus.

Very simply, you buy a share in the property and pay a subsidised rent on the remainder (which is still owned by Peabody), which can be less than the usual rent for homes in that area.

Then, when you can afford to, you can buy further shares from us and eventually own your home in full if you wish.

Guide to buying a Shared Ownership home

Our 12 Step Guide to Peabody Shared Ownership will help you through the buying process, and for further details, read our Shared Ownership FAQs.  

 

Buying more shares

Once you have completed your Shared Ownership purchase you have the option to buy further shares in the future. This process is known as staircasing and allows you to own a greater proportion of your home.

If you choose to staircase you will pay less in rent as Peabody will own a smaller share. You will also benefit financially if the value of your home has increased when you come to sell it.

You can usually staircase up to three times, with the third time taking you to 100% ownership. The minimum share you can purchase each time will be specified in your lease but is usually 10% or 20%. Once you own 100% you’ll no longer have to pay rent to Peabody but as a leaseholder you will still be required to pay service charge and ground rent.

Download Staircasing Enquiry Letter

Selling your home

You can sell your home as soon as you are the legal owner. To establish the right price at which to sell your home an independent valuation will be carried out. This valuation is then valid for three months – if no buyer is found within this period a new valuation is required.

Peabody will have eight weeks to find a purchaser for your home – this is known as the nomination period and the exact time will be specified in your lease.

Once applicants have viewed your home and expressed an interest in buying it, Peabody will then allocate the property according to our selection criteria.

If you have staircased to 100% ownership you can sell your home on the open market.

View the Resale Process

Download Resale Enquiry Letter