In a sense many people buying a home together are involved in shared ownership - when two or more people purchase a property they normally do so either as joint tenants or tenants in common (these are legal terms best explained by your solicitor!)

However, we are considering here the more widely known facilities available mainly from Housing Associations and similar bodies.

The individual arrangements differ widely but in essence the facility often enables those who might be otherwise unable to purchase a property at all because of the cost, to at least get one foot on the property ladder, by entering into an arrangement whereby they and the Housing Association (or similar) will own the property jointly on an agreed share.

The share of ownership ratio varies between individual agreements. It can be 50/50 or 70/30 (normally in favour of the Housing Association). The private buyer will need to arrange a mortgage for his or her share of the purchase price, and will normally pay a rent in respect of the proportion not owned.

As the amount of overall mortgage being sought is obviously lower than if a ‘whole' property was being purchased, it is easier to obtain a mortgage  if income is a bit 'tight' for example and the lenders are happy because they are first mortgagees of the property and have a lower risk. As with ordinary mortgages, however, status is considered carefully and any problems will make things more difficult.  In assessing elegibility for a mortgage a lender will still require the potential purchaser to put down a 10% deposit of the reduced mortgage required, and the rent paid  on the part of the property not being purchased will also  have to be taken into account when assessing elegibility..

Entering into a shared ownership arrangement is sometimes a sensible - and indeed often the only - way to make a start on owning one's own property.

We would suggest that anyone considering entering into a shared ownership arrangement should consider matters very carefully and in particular

1. Check that the overall purchase price of the property is realistic compared with other similar non Housing Association properties in the area.

2. Check carefully the terms of any agreement to be entered into, giving particular attention to exit arrangements should your circumstances change and you may wish to sell your shared equity portion in order to buy a property of your own.

3. Check what other costs in which you will be involved in  are in addition to the mortgage and rent, such as maintenance charges, insurance and the like. Also enquire as to any likely increases in these items.

4. Check what arrangements are in force for you to buy further portions of the property which you do not own should you wish to do so, and how the cost of doing this would be determined.

5 Check what restrictions are in force, if any, should you wish to sell your portion of ownership at any time.

6. It can be difficult for anyone entering a shared ownership arrangement to extricate themselves from this in the future. As property values increase over the years (by no means guaranteed of course, but from past experience they normally do!) the cost of buying the portion you do not own may become out of reach.

7.Always add together the amount you are going to be paying on mortgage and the rent you will be charged plus maintenance and other fixed costs, and work out whether or not this figure could be sufficient to purchase a property outright which you would fully own.

Whilst shared ownership arrangements can often be a positive way forward in many instances, the step should not be taken lightly  and all the implications should be considered carefully.