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Original poster

Is there a catch to a shared ownership flat in London?

33 replies

JacknDiane · 08/03/2026 08:49

I keep seeing these advertised, its 25% mortgage and 75% rent, and a service charge on top. Would I need to stay there for ages to make anything on the ownership part?
I can't afford the full price as I dont have a large enough deposit. This shared ownership seems a good deal, but im curious as to how it would work out.
Has anyone bought in London this way and could share their experience?

OP posts:
RedToothBrush · 09/03/2026 09:13

Catza · 09/03/2026 09:05

I have just pulled out of a SO purchase quite late into the process. When the lease came in for me to review, there were just so many things I didn't agree with. You can't really redecorate if you are planning to sell in the near future. My lease wanted me to repaint everything in "approved" colours before a sale - may not be an issue if you like "landlord white" on your walls and are not planning to redecorate. I had to ask permission to keep a pet (this was a house purchase, not a flat so seems entirely unreasonable). Since it was new development, they required all existing owners to pay service charges for the entire development until all other units are sold - no idea how many were still empty and how long it would take to sell. When selling, had to offer HA the first dibs on finding a buyer, which wouldn't be a problem had they not charged me for the privilege regardless of whether or not the property sold. No right to every hold any interest in another property for the duration of your tenancy. Ever. Not even as part of Ltd. If you ever happen to inherit something, you are technically in breach of your lease. Maybe not enforceable but I am not willing to take the risk. Rent will be going up every year with the rate of inflation + additional %. Service charge can go up at any time by any amount.
These are just some restrictions.
Ultimately, you'd be paying your mortgage till retirement and still only end up with a small portion owned. How much your equity will grow in that time and what and where you will be able to afford to buy subsequently is anyone's guess.

I know some people are very happy in their SO flats but I don't want to live my life having to ask permission for every step I take. I ended up finding a nice house on the coast which would work out the same, if not cheaper over the longer term.

Edited

This just highlights how different contracts are. We could have pets and decorate but had to get approval on significant changes to the structure of the building (eg extensions or knocking through walls).

The devil is absolutely in the details of the small print

Catza · 09/03/2026 09:24

topcat2026 · 09/03/2026 09:10

No right to every hold any interest in another property for the duration of your tenancy. Ever. Not even as part of Ltd. If you ever happen to inherit something, you are technically in breach of your lease

How awful. I didn’t know this was a thing with shared ownership - is it just with that HA? @Catza

No, it's actually in the government guidelines for founding of SOs. It's not an issue if you live in the property and no checks are triggered. But when you come to sell, the solicitor will ask you if you complied with the terms of your lease throughout the ownership which is where these things tend to come out and cause issues.

topcat2026 · 09/03/2026 09:31

Thanks for clarifying that @Catza .

I’ve heard some HA’s restrict people from taking on lodgers, which is ridiculous. I just can’t see many plus points to SO.

Motherofnm · 17/06/2026 09:10

It depends on whether you buy resale or brand new and who is managing your service charge. I have a shared ownership in South London. A master bedroom, double bedroom, big bathroom, balcony and my service charge is £1700 a year, this is almost unheard of in London. My flat has appreciated in value, i bought it 6 years ago at market price, so it hasnt dropped it value, i have also maintained it well. The demand will never really go away because housing in London is wildly unaffordable, Shared ownership if you have managed to secure a really decent place with lowish service charge will sell.

Motherofnm · 17/06/2026 09:12

You are allowed lodgers, but you must be living in the property with the lodger otherwise its classed as renting out the property.

MagnesiumBathSalts · 17/06/2026 09:13

Thingamebobwotsit · 08/03/2026 08:56

The only instance I know of left the individual worse off than if they bought outright. And it was exceptionally difficult to sell on, despite being in a leafy NW London desirable area, flat beautifully kitted out etc.

Part of the problem is, if you eventually want to buy “more” of the house, you are then charged the current market rate on that percentage of the property (not the set rate from when you first purchased a percentage). I hope that makes sense. So you can end up hugely over paying.

I would reccomend saving a better deposit or looking for somewhere more cost effective

Original poster
JacknDiane · 17/06/2026 10:01

Thank you

OP posts:
Sheeshbee · 18/06/2026 09:27

All the disadvantages of renting with none of the benefits; flexibility, lack of money tied up.

In fact there's so much more paperwork and they're so much harder to sell that you're much better off just renting.

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