As a shared-owner, you are eligible to buy more shares of your home at any time, working towards owning your property outright.
Here's a 3 minute video explaining how it works:
How it works
You can buy as many shares as you like from a minimum of 5%.
The value of the shares you can buy is based on the current market value of your home. So, if your home is valued at £250,000, the smallest extra share you can buy is 5%, which would cost £12,500. A 30% share would cost £250,000 x 30% = £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.
The benefits of buying more shares
Owning more of your home can benefit you financially and give peace of mind. The 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.
- More freedom to rent your property out, sell on the open market and carry out home improvements if you own 100% of your property.
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 - more income could give you the flexibility to afford a larger share.
- You get a big bonus or inheritance - a lump sum might be enough to buy a bigger share.
- The value of your home goes up - you might be able to borrow more to buy a bigger share.
- Your mortgage rate goes down or your mortgage is up for renewal - this maybe a great time for you to benefit from a lower rate which means you can borrow more.
How to decide if it’s right for you
These steps will help you decide if buying more shares makes sense for you:
- Step 1 - Get an idea of how much your home is worth. Websites like Yopa or Zoopla can be helpful, and estate agents will often give a rough valuation for free. This will tell you how much additional shares of your property will cost, but please note, we cannot accept an estate agent’s valuation as part of the official process.
- Talk to an IFA or your current mortgage lender. An IFA can assess your affordability and confirm how much you can borrow. Alternatively, speak to your current lender
- Step 3 - Work out your monthly savings. Use our monthly payment calculator to work out how much you will save on your SO Resi Monthly Payment each month.
- Step 4 - Compare the numbers. Compare your monthly savings with the upfront costs and any increase in monthly mortgage payments to decide if it’s the best time for you.