Joint Shared Ownership
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Joint Shared Ownership (Part 1)
Charlie Connolly from Midas Financial Planning explains how a joint shared ownership mortgage works.Can two or more people apply for a shared ownership mortgage jointly?
Yes, it’s possible for two or more people to apply for a shared ownership jointly.
Do all applicants need to meet the eligibility criteria individually?
Yes. To proceed with a joint shared ownership mortgage, all applicants must individually meet the eligibility criteria.
How is ownership divided between joint applicants? Do we split rent and mortgage payments 50-50, or can it be tailored?
In a shared ownership arrangement, the split of rent and mortgage payments doesn’t have to be 50-50. It can be tailored. You could have a 60-40 split for mortgage and rent, for example.
You can agree on a different percentage split for the mortgage and rent based on contributions to deposit income, or other factors.
In terms of the joint applicants having a 50-50 split, you would just have the same split of rent and mortgages per applicant.
Can we change the ownership percentages later on?
Yes. This is called ‘staircasing’ and you’re able to staircase up to 100%, subject to lending criteria.
What happens if one party wants to sell or exit the agreement?
If one applicant wants to sell or exit the shared ownership property, the remaining party would need to be able to afford the mortgage by themselves. Otherwise, in the worst case scenario, they’d have to sell the property.
How is affordability assessed on a joint shared ownership application?
Affordability in joint shared ownership applications is assessed by evaluating the combined financial circumstances of both applicants.
This includes their income, their credit commitments or debts, and ability to manage the ongoing costs of home ownership, such as the mortgage, the shared ownership rent and service charges.
Housing providers use this information to determine if the applicants can afford their share if they wish to purchase, and manage the associated expenses.
Do both applicants need to be employed or have income?
No, both applicants don’t need to be employed or have an income to apply for a shared ownership mortgage. It just means the main earner’s income is going to be used for the affordability checks.
What is the minimum deposit required for a joint shared ownership mortgage?
The minimum deposit for a shared ownership is 5% of the share you are buying. It’s not 5% of the market value, just of that share.
For example, if you’re purchasing a property worth £200,000 and you’re only buying a 50% share, the 5% deposit would be £5,000 rather than £10,000.
Can we use a joint Help to Buy ISA or Lifetime ISA towards the deposit?
Yes, it’s still possible to use Help to Buy ISAs or Lifetime ISAs towards a deposit for purchases in the UK.
Which lenders offer joint shared ownership mortgages? Are there many?
Most high street lenders do offer joint shared ownership mortgages, but availability will depend on you meeting certain criteria.
Some high street lenders that would consider a joint shared ownership mortgage at the moment are Nationwide, Halifax, TSB, Barclays and Leeds Building Society [information correct at the time of recording in July 2025].
Should we buy as joint tenants or tenants in common?
There are advantages and disadvantages to both. Married couples or applicants in a relationship may suit joint tenants, whereas tenants in common may suit friends purchasing together.
What legal agreement should we have in place?
Ultimately, it is up to you whether you want to get a legal agreement in place. The most common legal agreement is a Deed of Trust. This stipulates how the equity, mortgage repayments and other financial commitments are divided. It would typically be used if you were to buy as tenants in common.
Can we staircase together, and at different times?
Yes, typically you staircase up when you come to remortgage. When you’re speaking to your mortgage brokers, you can ask them if it’s possible to staircase up and increase your share of the property.
You’d also need to let the Housing Association know, as they would need to instruct an up-to-date valuation of the property. That valuation would be used automatically if you, for example, want to purchase an extra 50% share of the property.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
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Joint Shared Ownership (Part 2)
We continue the conversation on joint shared ownership with Charlie Connolly. Episode two of two, recorded in August 2025.
What happens to the mortgage and property share if we separate? Can one person take over the mortgage if the other leaves?
If you separate from the joint borrower, you are able to take over the mortgage, subject to affordability and credit checks. The party being removed may need to be bought out.What documentation is required from both applicants? Do we both need to attend meetings and sign all the paperwork?
Yes, typically we would need both of you to attend and sign paperwork. The normal documentation we would need are your last three months’ payslips, or tax calculations and overviews if you’re self-employed, the last three months’ bank statements for you both, and copies of your passports and driving licences.Are there specific solicitors who specialise in joint shared ownership?
Yes, some solicitors have more experience in shared ownership than others. At Midas, we have a panel of shared ownership solicitors, which we can recommend if you need any guidance in this area.How long does the process typically take for joint buyers? Is there any difference?
The process can vary. Typically for joint borrowers, it would take three to six months – but it also depends whether the shared ownership property is a new build.Can we apply with different credit histories or income levels?
When submitting a joint mortgage application, the lender will take into account both of your credit scores and use your combined income to make their decisions.Are both parties equally liable for the mortgage and rent?
Yes, when you enter a joint mortgage, you are both mortgagees – which means you are both liable for the mortgage and the rent.What other costs do we need to budget for?
Monthly costs on a shared ownership property include the rent for the share you aren’t purchasing, and the service charge and buildings insurance.Typical upfront fees include your solicitors – who would also charge additional fees for the initial purchase of the property as it is shared ownership, and a lease offer.
Can joint applicants get financial help or benefits?
There may be help available, such as universal credit. As you’re living together, you generally need to make a joint claim. You can find more information on the government website.How is the sale of a shared ownership property handled with joint owners? Can we sell our shares independently?
It’s not possible to sell your shares independently. If you purchase a 50% share in the property, you both own a 50% share of that 50%.If you split up, or one person decides they don’t want to be part of the shared ownership anymore, the other person would need to be able to afford the entire loan and rent by themselves. In that case, they can potentially look to buy out the other borrower.
What legal protections exist if one person stops paying?
There aren’t any legal protections as such in a shared ownership arrangement. If one person stops paying their share, the other party is generally responsible for covering the shortfall.That’s the same with a mortgage, as well.
What happens if one person passes away?
Ultimately it depends on how the property is held. It could be a joint tenancy, in which case the surviving owner automatically inherits the deceased’s share through survivorship.If it’s tenants in common, the deceased passes on their share of the property according to their Will, or the Rules of Intestacy.
Can we transfer ownership between us or to a third party?
Yes, potentially it’s possible. It would be called a Transfer of Equity and would depend on the circumstances of the transfer to the third party. It’s subject to checks with the lender around affordability and criteria.How can a mortgage broker help? Anything else you’d like to add?
I think it’s important to use a broker such as ourselves, as we’ve got good experience in dealing with joint shared ownership mortgages. We can pass on our guidance and make you aware of any risks and restrictions. You’ll be able to lean on us throughout the process.YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.