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Buying more
shares
As a Shared Owner, you are eligible to buy more shares of your home at any time, working towards owning your property outright.
As a shared owner, you are eligible to buy more shares of your home at any time, from a minimum of 5%, working towards owning your property outright.
If your home was built after 2020, you may also be eligible to buy 1% each year for the first 15 years of ownership.
This 3 minute video explains how buying more shares works:
Buying 5% or more - how it works
The cost of any extra shares you buy is based on the current full market value of your home. So, if your home is valued at £250,000, buying 5% more would cost £12,500. Buying 30% more would cost £75,000.
You can buy more shares as many times as you like, but remember that each time you do so, you will have to pay for a valuation, solicitors fees, etc.
Once you reach 90%, you must buy the last 10% in one go.
Buying a 1% share
If your home was built after 2020, you may be eligible to buy an extra 1% of your home each year, without having to pay any legal fees, surveyors fees or other transaction costs, for the first 15 years of ownership.
The benefits of buying more shares
Owning more of your home can benefit you financially and give peace of mind. Key benefits are:
- Reduce your monthly rent - when you purchase a larger share of your home, the rent you pay on the remaining share we own will reduce. However, bear in mind that your monthly mortgage payments may increase.
- Grow your investment - the more of your home you own, the more you benefit if house prices go up, but don’t forget that house prices can also go down.
When to buy more shares
It’s up to you to decide when the time is right, but here are some pointers:
- A pay rise or better-paid new job means you have more income
- A big bonus or inheritance gives you a cash lump sum
- The value of your home goes up, meaning you might be able to borrow more
- Your mortgage is up for renewal, securing a lower rate could mean you can borrow more
A financial adviser can talk you through your options.
How to decide if it's right for you
These steps will help you decide:
- Step 1 – Get an idea of how much your home is worth. Websites like Rightmove or Zoopla can be helpful, and estate agents will often give a rough valuation for free. However, note that we need a formal RICS valuation to calculate the actual cost if you wish to go ahead.
- Step 2 – Work out your new lower rent. Use our monthly payment calculator to work out how much you will save on your monthly rent payments.
- Step 3 – Talk to your mortgage lender. If you need a bigger mortgage to buy more shares, speak to your current lender to find out whether that’s possible and what it would cost.
- Step 4 – Make a decision with expert help. Compare the amount you’d save on rent payments each month with any increase in your monthly mortgage payments. Then factor in the upfront costs to decide if buying more shares works for you.
More information
If you prefer, our PDF guide explains the details of buying more shares.
Let's get started
If you’ve read our step by step guide and are happy with the process, let’s get started! You'll need a SO Resi account to access the Buying more shares section.