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1. Overview

Shared Ownership – Wales provides support to those wanting to buy a home but cannot quite afford the purchase of 100% of the home at the full market value.

How it works

With Shared Ownership – Wales:

  • you can buy a share of the home and pay rent on the remaining share
  • you can purchase of an initial share of between 25% to 75% of the value of the chosen property 
  • you must take out a repayment mortgage for the share of the home purchased
  • you can increase your share in the property at anytime

Financial example of initial purchase

Home value at initial sale £200,000
Equity share purchased at initial sale 30%
Payment to provider at initial sale £60,000
Deposit requirement £6,000
Mortgage requirement £54,000

Mortgage monthly requirement

(Based on a 25 year mortgage at 4.5%)

£300 per month (£69 per week)
Equity share retained by provider 70%
Value of share retained by provider £140,000
Maximum annual rent £3,850
Max monthly rent £321 per month (£74 per week)
Combined mortgage and rent per month £621 per month (£300 (mortgage) + £321 (rent)) 

If the applicant had been able to purchase outright their monthly mortgage payment based on a 10% deposit (£20k) on 25 year mortgage at 4.5% would be £1,000 per month.

Financial example of increasing the share in your home (staircasing)

You will have the opportunity to buy more shares in your home this is known as ‘staircasing’.

Home value at staircasing £220,000
Equity share to be purchased at staircasing 20%
Payment to landlord at staircasing £44,000
Share owned by you after staircasing 50%
Equity share retained by landlord 50%
Rental payment before staircasing £385 per month
Rental payment after staircasing £275 per month