1. What is the Share to Buy Calculation?

The Share to Buy calculation determines what fraction of a property you can afford based on your available funds and the total property value. This is commonly used in shared ownership schemes where buyers purchase a portion of a property.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Affordability \) — The amount you can afford to spend (in your chosen currency)
• \( Property\ Value \) — The total value of the property (in the same currency)

Explanation: The result shows what percentage of the property you can purchase with your available funds.

3. Importance of Share Calculation

Details: Calculating your share helps in financial planning for shared ownership purchases, understanding what portion of a property you can afford, and comparing different property options.

4. Using the Calculator

Tips: Enter your available funds and the total property value in your preferred currency. Both values must be positive numbers. The calculator will show your share as both a percentage and a decimal fraction.

5. Frequently Asked Questions (FAQ)

Q1: What is shared ownership?
A: Shared ownership is a scheme where you buy a portion of a property (usually between 25%-75%) and pay rent on the remaining share.

Q2: What is a typical minimum share I can purchase?
A: This varies by scheme, but many require at least 25% share to begin with.

Q3: Can I buy more shares later?
A: Yes, most shared ownership schemes allow you to purchase additional shares (known as "staircasing") when you can afford to.

Q4: Does this include additional costs?
A: No, this calculation only shows the purchase share. Remember to account for stamp duty, legal fees, and ongoing maintenance costs.

Q5: How does currency affect the calculation?
A: The calculation works the same in any currency, as long as both values use the same currency. The result is a dimensionless fraction.