Home
Back
Shared Ownership Loan Formula:
| From: | To: |
A Shared Ownership Loan calculates the amount you need to borrow when purchasing a share of a property. This scheme allows you to buy a portion of a property (usually between 25%-75%) and pay rent on the remaining share.
The calculator uses the Shared Ownership Loan formula:
Where:
Explanation: The equation calculates the loan needed by first determining the cost of your share, then subtracting any deposit you're putting down.
Details: Accurate loan calculation helps you understand affordability, plan your finances, and determine what mortgage products you might qualify for in a shared ownership scheme.
Tips: Enter the total property value in currency, the share percentage you wish to purchase (typically 25%-75%), and your available deposit. All values must be valid (property value > 0, share % between 0-100, deposit ≥ 0).
Q1: What is shared ownership?
A: Shared ownership is a scheme where you buy a share of a property (usually 25%-75%) and pay rent on the remaining share, often with the option to buy more shares later.
Q2: What are the benefits of shared ownership?
A: It allows you to get on the property ladder with a smaller deposit and mortgage than buying a property outright, while building equity in your owned share.
Q3: How does the deposit work in shared ownership?
A: Your deposit is calculated as a percentage of the share you're buying, not the full property value (e.g., 5-10% of your share's value).
Q4: Can I buy more shares later?
A: Most shared ownership schemes allow "staircasing" - buying additional shares until you own 100% of the property.
Q5: What costs are involved besides the loan?
A: You'll need to budget for mortgage fees, valuation fees, legal fees, rent on the unowned share, and service charges.