19. Ownership share calculation

Your ownership share in a shared ownership arrangement is typically determined based on several factors, including your financial circumstances, affordability, and the requirements of the shared ownership scheme. Here is how your ownership share may have been determined initially: 

Affordability assessment

• Income and expenses: Your housing association or developer likely conducted an affordability assessment to determine the maximum share of the property you could afford based on your income, expenses, and other financial obligations. 
• Deposit and mortgage: The affordability assessment considered your ability to provide a deposit and obtain a mortgage for the property. Your share of the property was likely determined based on the portion you could afford to purchase with your own funds and mortgage financing. 

Shared ownership scheme guidelines

• Scheme requirements: The shared ownership scheme you participated in may have specific guidelines or eligibility criteria regarding the maximum and minimum ownership shares allowed. Your ownership share would have been determined within the parameters set by the scheme. 
• Scheme limits: Shared ownership schemes typically limit the maximum share of the property that you can initially purchase. This ensures that the property remains affordable and accessible to a broader range of buyers. 

Property valuation

• Market value: The market value of the property played a crucial role in determining your ownership share. Your share would have been calculated based on a proportionate amount of the property's valuation, considering factors such as location, size, condition, and market trends. 
• Percentage share: Your ownership share is expressed as a percentage of the property's market value. For example, if the property's market value is £200,000 and you purchased a 50% share, your initial ownership stake would be worth £100,000. 

Legal documentation

• Shared ownership lease: Your ownership share would have been documented in the shared ownership lease or purchase agreement provided to you by the housing association or developer. This legal document outlines the terms and conditions of your ownership share, including the percentage owned and any related rights and responsibilities. 

Consultation and advice

• Housing association or developer: Your housing association or developer would have provided guidance and assistance throughout the shared ownership process, including helping you determine the most suitable ownership share based on your individual circumstances and preferences. 
• Independent financial advice: You may have sought independent financial advice to assess your options and determine the most appropriate ownership share for your situation. Financial advisors can help evaluate affordability, mortgage options, and long-term financial implications.