Question 1

What is Shared Ownership?

Accepted Answer

Shared ownership is a scheme that enables households to buy a share in a property (usually between 25% and 75% of the home’s value). A subsidised rent is payable on the remaining share held by the landlord, with the ability to purchase additional shares. The combined monthly cost of mortgage and rent will normally be less that if purchasing a property outright. To be eligible for a shared ownership property, the annual household income can be no more than £80,000 and applicants must be registered on the Home Buy Register.

Question 2

How does Shared Ownership work?

Accepted Answer

You buy a share of your new home and pay rent on the rest. As you save money and your financial situation improves you can buy a larger share in your home until you own it outright.

Question 3

Who can apply?

Accepted Answer

As shared ownership is designed to help people who are struggling to buy a property outright, there are some restrictions on who can buy. You can take advantage of shared ownership if you:
Are unable to afford to buy a home outright on the open market;
have a household income of less than £90,000 (outside of London this threshold is £80,000);
meet the relevant local authority, London Borough of Barking & Dagenham, eligibility criteria;
have sufficient savings to meet the one-off costs of buying a shared ownership home, and access to capital or a mortgage to fund your share of the purchase;
be first time buyers, although some applicants who own or have previously owned a home may be eligible. This includes people who have lost a home through a relationship breakdown and shared owners whose family has grown and they need a larger home but who are still unable to afford to buy outright.

Question 4

How much do I have to earn?

Accepted Answer

A minimum income level will be required which will vary depending on the size of the home and the location. However, if you can afford to buy the property outright you will not qualify for shared ownership. All applicants are assessed using a calculation to determine how much you can afford to spend on buying a home without struggling to make ends meet.

Question 5

Does Shared Ownership mean sharing with someone else?

Accepted Answer

No – this is a common misconception but the ‘shared’ aspect of the scheme simply means you’re sharing ownership of your home with a housing provider, in this case, B&D Reside.

Question 6

Can I ever fully own a Shared Ownership home purchased from B&D Reside?

Accepted Answer

Yes – Shared Owners can choose to buy additional shares in their property by ‘staircasing’.
When buying a Shared Ownership home, you will initially purchase a minimum percentage somewhere between 25% to 75%. Down the line, if you find that your financial circumstances have changed, you will have the option to buy more shares.
If you choose to buy a higher percentage, your mortgage repayments will increase while the rent you pay will decrease. In the majority of cases there aren’t any restrictions and you can buy 100% of your home – in this instance, you would become the outright owner.

Question 7

Do I meet the eligibility criteria for a B&D Reside Shared Ownership home?

Accepted Answer

As a home-buying product aimed at helping those who can’t afford to purchase a property on the open market, there are certain requirements that buyers will need to meet to be considered eligible for Shared Ownership.
For example, there are caps on household income which means that you must earn less than £90,000 to be eligible for the scheme – or less than £80,000 if you were to purchase a shared ownership home outside London. It’s important to note that all BD Reside homes are in London.   The criteria also states that buyers must be at least 18 years of age and do not own another property either in the UK or abroad.

Question 8

What are the costs involved in buying a B&D Reside Shared Ownership home?

Accepted Answer

Shared Ownership properties enable you to put down a smaller deposit compared to those required on the open market – buyers will usually need to put down 5% to 10% of the share that they’re buying, rather than the full market value of the home.
On a monthly basis, buyers will be required to pay their mortgage, a subsidised rent and service charge on their home, however, these repayments often work out cheaper than or equal to renting privately in the same area. Other costs to consider when buying a home include solicitor and mortgage broker fees – you can find out more about these costs on Share to Buy.

Question 9

What other ongoing costs can I anticipate?

Accepted Answer

You will be responsible for all utility bills such as gas, electric, council tax, water rates, contents insurance etc. You should include these costs in your monthly budget.

Question 10

What are my responsibilities with regard to repairs?

Accepted Answer

You will be responsible for all repairs and maintenance to your property, just like an owner-occupier. Communal repairs will be carried out by Reside and the cost of those repairs will be shared equally amongst other leaseholders within the building and charged through service charges.

Question 11

Can I sublet my home?

Accepted Answer

No. Government money goes into affordable home ownership schemes, so we have to control who benefits from it. Also, if you have a mortgage on your home, your lender will probably be concerned if you let it to someone else.

Question 12

Does B&D Reside have any Shared Ownership homes available now?

Accepted Answer

You can find details of properties currently available using 
this link

Click here to find your new home

Question 13

What is London Living Rent?

Accepted Answer

Available to eligible renters within the capital, London Living Rent homes are for middle-income households who currently rent and are aiming to build up savings to eventually buy a home through Shared Ownership or outright purchase.  The homes are offered on tenancies of a minimum of three years with below-market value rent, however this can be extended to a maximum of 10 years. The amount of rent you pay will vary according to where you live in the capital.

Question 14

What is Discounted Market Rent?

Accepted Answer

This is aimed at people who have difficulty affording market rents on the open market and for those who lack a mortgage deposit and therefore cannot buy a home just yet. Discounted Market Rents are generally set around 80% of the market rate.  The target group for Intermediate Rents is different from those looking for Social/Affordable Rented housing and generally these are targeted at working households, such as those working in ‘essential services, such as the NHS, education, the Police, etc.

Question 15

What is Market Rent?

Accepted Answer

Market rent, also called 'private rent', is based on the open market, or the average market rent level for similar properties in a specific area. Properties we offer at market rent operate in a similar fashion to a regular high street estate agent.

Question 16

What is Social Rented Housing?

Accepted Answer

This term refers to housing owned by local authorities and Registered Providers, for which guideline target rents are determined through the national rent regime.  The rent is calculated using a set formula that takes into account the value of the property, the average earnings in the area and the number of bedrooms.  Social Rented properties are the most affordable tenure type, typically around 60% of an open market rent. Housing Benefit is available to qualifying households where they are unable to pay their Social Rent. Social Rented Housing properties are allocated through the London Borough of Barking & Dagenham housing register.

Question 17

What is Affordable Rented Housing?

Accepted Answer

This type of housing is subject to rent controls that require a rent of no more than 80% of the local market rent (including service charges, where applicable).  As with Social Rented Housing, applicants will need to satisfy certain criteria and these properties are also allocated through the London Borough of Barking & Dagenham housing register.

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