Should I Buy A Shared Ownership Property With Short Lease?

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Owning a property is an exciting and exciting thing to do. You can buy a home for yourself, or you can buy it for your family. You can own it outright, rent it, and pocket the profits yourself. You can even buy an investment property and sell it when its value increases.

However, when it comes to shared ownership and short leases, you might be confused about whether or not this is a good choice for you. Shared ownership schemes are becoming more popular in recent years, but they are still relatively new in the UK.

Also read: What Are Searches When Buying a Property?

If you’re thinking about purchasing shared property, but don’t know how this will work out financially or what responsibilities come with having such a property, here is everything you need to know:

What is shared ownership property?

Shared ownership properties are a dream come true for anyone who wants to buy a house but doesn’t want to pay for it in full. In a shared property, you only pay a small amount of money to the owner via cash or mortgage. You do not own the property—instead, you own a part of the property but not all of it.

You will pay monthly rent, service and maintenance fee, ground rent, and other expenses associated with owning a home. You will also have an opportunity to contribute towards improving the property and enjoy some of the benefits of owning a home.

Shared ownership is classified as a leasehold. 

Also read: The Cost of Buying a House and Moving

What is a short leasehold?

A short leasehold is when the tenant has less than 50 years on their lease. This means they can only stay in the property for this period, after which they are expected to leave. However, some exceptions exist where tenants can extend their leases by 25 years (or more).

A mortgage can finance short leaseholds. The maximum amount of repaying a mortgage is 25 years for most lenders. So, banks will want a property with more than 50 years or even 80 years to guarantee the value they are lending you against.

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What is a shared property with a short lease?

It’s any property where you do not own all of it and have leased it for less than 50 years. You may also see this term used in place of “shared ownership.”

Shared ownership properties with a short lease require you to pay a certain amount to acquire a percentage of the property. Once you have paid, you will also be paying monthly rent and maintenance costs, as described above. 

Should you buy a shared property with a short lease?

If you’re considering buying a shared property with a short lease, you’re probably wondering if it’s a good idea.

The short answer is yes! Buying a shared property with a short lease can be a great way to get into the housing market and start saving for your dream home. Here are the advantages you accrue by purchasing a shared property with a short lease:

1- Long-term stability

If you’re a first-time buyer and you’ve been looking for a new home for a while, shared ownership property might be worth considering. These properties allow you to buy a share in a home instead of buying it outright, which means you can save money by paying less upfront. You also don’t have to worry about digging into your savings or incurring debt as much if things don’t work out.

The great thing about shared ownership is that it gives you long-term stability without digging into your pockets so much.

2- You can buy more shares and increase the leasehold time

With the shared ownership model, you can buy more shares and increase the leasehold time at any time. So, there’s no need to rush into an expensive purchase.

With the lease extension feature, you can stay in your current home for as long as you want and extend the short lease to become a long lease. 

Also read: Conveyancing Help For First Time Buyers


You should consider buying a shared ownership property with a short lease, especially if you are looking for a quick way to get your foot in the door. The main advantage of a shared ownership property with a short lease is that it is an easy, low-cost way to get into the property market. 

We recommend involving a conveyancer in your purchase. The conveyancer will work with both parties to ensure everything is done correctly, meaning there are no surprises at the end of the deal.

Also read: Can You Change Conveyancing Solicitors?

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