Shared Ownership for Older Persons: Become a Homeowner, No Matter Your Age

Shared Ownership is an affordable way for individuals or groups to get on the property ladder and reap the benefits of home ownership. It’s a particularly attractive option for first-time buyers, because it allows them to own a home with a much smaller initial investment than a standard deposit would require.

Can an older person buy a Shared Ownership home? 

Absolutely! There is no upper-limit on the age at which a Shared Ownership home can be purchased, and there are a number of reasons that an older person may choose to go down the Shared Ownership route.

In the UK, the average age of a first-time buyer is 34. However, this doesn’t mean that Shared Ownership properties are only for buyers in a younger demographic. We’ve worked with a number of older buyers to secure their older persons Shared Ownership property, and help them to achieve the independence and security that comes with owning your own home.

In a recent study, 46.7% of people aged 55+ claim to own their own home. Having an outstanding mortgage to pay on a bigger home than you need or privately renting makes retirement living tough. But it’s never too late to get on the property ladder or downsize and start the next chapter.

In order to obtain a Shared Ownership home, applicants need to meet the following criteria:

• You must be at least 18 years old
• You must demonstrate that you are not in rent or mortgage arrears
• Your annual income must not exceed £80,000 (or £90,000 if you live in London) 
• You must not be in a financial position to buy a property on the open market

This final point is perhaps the most important when considering Shared Ownership for older persons. There are a number of reasons that finances may become strained when looking for a property on the open market – such as a recent separation, becoming widowed, or simply encountering a change in lifestyle that no longer makes this viable. With Shared Ownership, the financial burden is lessened and your options open up. 

There may be a perception that Shared Ownership is typically built around younger buyers, but this simply isn’t true. In 2016, the UK government removed priority group consideration where there’s an under-supply of Shared Ownership properties. This changed the process to a first-come, first-serve model which creates an equal opportunity, regardless of age or background.

Is Shared Ownership for an older person worth it? 

There are lots of benefits to Shared Ownership for older persons that make it an attractive option for owning your own home, no matter your age:

• You’ll make retirement life easier and relieve financial pressure
• A great option if you’ve recently split up from a partner
• Enables you to keep equity (rather than opting for an Equity Release scheme)
• You can paint, decorate or refurbish your home
• Increased home security (so long as you meet your obligations)
• Feel a sense of community living alongside other Shared Ownership buyers
• A great way of moving to a better location (closer to your family, or in a quieter area)

Purchasing a bigger share of your older persons Shared Ownership property with staircasing

When looking at the older persons Shared Ownership properties available to you, it’s important to consider the size of the share you’ll be buying on the home. This typically ranges from 25% to 75% of the purchase price, and represents how much of the property you’ll actually own. 

However, through a process known as staircasing, you can increase your share which reduces the rent you’ll need to pay on the remaining shares you don’t own. You can staircase until you own 100% of the property outright, which means you don’t need to pay any more rent or service charges to the housing association. 

Make sure to check out our complete guide on staircasing and Shared Ownership to get the full picture. 

What is the Older Persons Shared Ownership (OPSO) government scheme?

Alongside the Shared Ownership scheme we offer, older buyers also have access to the OPSO scheme which works slightly differently. 

Through this scheme, older persons aged 55 and up can use staircasing to purchase up to a 75% share of their home. Once this cap has been reached, they will no longer pay rent on the rest of the property. However, the number of properties available via the OPSO scheme is far more limited than standard Shared Ownership homes. 

In addition, 75% is the maximum share that OPSO homeowners can reach. With standard Shared Ownership, you have the option to own 100% of your home through staircasing. 

While we don’t offer the OPSO scheme with our properties, we do encourage buyers of all ages to go down the Shared Ownership route to secure their own home. By browsing our wide range of properties, buyers like you – aged 18 and up – will be sure to find a property that aligns with your financial and lifestyle needs.