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Guide to buying a shared ownership home together

You’ve shared jokes, meals and perhaps even a few tears – but could you share the biggest financial commitment you’re likely to ever make?

It can make excellent financial sense. Buying a home with a spouse, sibling or friend can be the only way to get on the property ladder, especially in London – but it does need to be given careful thought.

Our guide to buying a shared ownership (or part-buy, part-rent) property together will take you through the things you need to consider, from getting a mortgage to setting house rules.

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Did you know?

  • You don't need to be high earners to get your feet on the property ladder. If you're both earning more than approximately £25,000pa each, you could be eligible to buy your own apartment together.

  • A 25% share of a two-bedroom house in East Village starts at just £87,500.

  • You only need from £4,375 as a deposit for a Triathlon Home in East Village - 90% less than the London average.

  • It's not just your deposit, transaction costs and mortgage payments/rent you'll be saving on: sharing utility bills, maintenance and repair expenses, and even groceries can cut your monthly outgoings quite substantially.

  • Under the shared ownership scheme, you're allowed one more bedroom than you need. So two of you could even look at buying a three-bedroom property.

So, you've decided to team up with a friend (or two) to buy a property.
What do you do now?

The practical details

  • Eligibility

    To buy a Triathlon Homes property, we need to check your eligibility through a simple online process. In summary, your annual joint income has to be less than £66,000 for two-bedroom homes and below £80,000 for three-bedroom homes. You must also be a British or EU/EEA citizen, be employed or self-employed and have proof of earnings with a good credit history, and be a first-time buyer.

  • Independent financial advice

    Once you've established you're eligible. It's vital you seek advice from an independent, qualified advisor who has expertise in the shared ownership sector before taking the plunge. The Mortgage Advice Bureau, in association with Sherwins, has specialist knowledge and can advise you on the maximum share you can afford, and what mortgage products are available.

  • Affordability

    Can you afford it? Your financial situation will be considered to make sure the maximum share you can buy is affordable and sustainable. Altogether, the mortgage, rent, and service charge shouldn't be more than 45% of you monthly income, and you also need to set aside money for legal expenses and moving costs.

  • Legal advice

    Now you've decided to go ahead, you'll need a solicitor to act on your behalf. Triathlon Homes has a panel of solicitors who are experts in helping people buy shared ownership properties. Talk to them about drawing a legally-binding contract and agree in advance what will happen if one owner's circumstances change, such as wanting to sell their share.

  • Remember, it's business

    In effect, co-ownership is an investment decision and you're investing with a business partner, so keep your paperwork in order and plan for the worst-case scenario, such as bitter feuds. Anything relating to the purchase should be in both your names. Draw up an inventory of who owns what, so there's no fuss when it comes to one of you moving out. And, as an investment decision, it can make sense to have a timeframe in mind.

The do's and dont's of buying and living together

  • Choose wisely

    You need to trust and like the person you're living with. Whether you're Monica and Rachel or Jez and Mark, you need to be able to be frank. As it were.

  • Talk talk

    Don't avoid talking about areas of potential conflict. You will fall out; you're only human. Just make sure you've planned ahead if it ends up with one of you wanting to sell up - and that you're comfortable with the term of agreements.

  • Don't play dirty

    Do your fair share of cleaning. And shopping. And paying the bills (out of a joint account, if you're sensible).

  • Pick your battles

    Don't fret over them using your shampoo or milk. Save it for something more significant. And never, ever, leave passive-aggressive Post-It notes around when you find someone's helped themselves to your cheese. You'll find yourself in a book, or out in the cold (metaphorically-speaking).

  • Do spend time together

    You may not be in a romantic relationship, but you decided to live - and buy - together for a reason. Don't end up just nodding to each other as you pass through the kitchen.

Take it from those who know

Tom Baird and his girlfriend Emily Evans have just bought a flat in East Village together with Emily's sister after deciding to move to London. To the 23-year-olds, teaming up to make their first step onto the property ladder seemed the only sensible option. Emily explained: "with renting, you feel your money goes straight in the bin - plus you have to work so hard to afford the rent. It's quite tough. By spitting ownership, we're actually putting our money into an investment."
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