Written by Jonathan Clements, DirectorHow it works
You buy a share of a home from a housing provider and pay rent on the part you do not own. You can buy more later, called staircasing, up to a maximum of 75%. At 75% the rent stops. You cannot go beyond 75%, so you never own the whole home.
Depending on when the home was funded, the first share can be as low as 10% or 25%. Each home's key information document sets out its rules, and it is worth reading before anything else.
Who qualifies
You must be 55 or over, and household income is capped, at £80,000 outside London. You normally need to be a first-time buyer, or a former owner who cannot afford to buy now, or meet one of the other criteria in the government guidance.
Do you need a mortgage?
Many buyers do not, because they buy their share from the proceeds of selling a previous home. Where a mortgage is needed, it is a later-life question: lenders look at your age at the end of the term and whether your pension income supports the payments, and only some lenders do shared ownership at all.
The costs that carry on
Rent on the unowned share rises each year, often by inflation plus 1%. Retirement developments usually carry service charges, which can be significant. Both go into affordability, and both deserve a close look before you commit.
Over 55s shared ownership, answered
What is the over 60 house buying scheme?
People usually mean Older Persons Shared Ownership, which is open from age 55. You buy a share of up to 75% and pay rent on the rest until you reach 75%, when the rent stops.
Can I buy 100% under OPSO?
No. The maximum is 75%, and at that point you pay no rent on the remaining 25%.
Can I get a mortgage at 60 or 70?
Yes, from lenders that lend into retirement, assessed on pension income and your age at the end of the term. Fewer lenders do this for shared ownership, so the choice is narrower.