Shared Ownership First-Time Purchase for a Key Worker in London
£168,000 · 35 years · 5.15% fixed 5 yrs. A paramedic in London earning £38,000 could not afford to purchase outright in her borough but qualified for shared ownership through a housing association.
The Client
Paramedic
The Challenge
A paramedic in London earning £38,000 could not afford to purchase outright in her borough but qualified for shared ownership through a housing association. She was purchasing a 40% share of a two-bedroom flat with the option to staircase upwards. Shared ownership mortgages are assessed on the share value, not the full property value.
Our Solution
Doulton arranged a shared ownership mortgage assessed on the 40% share value. The housing association's lease terms were reviewed to ensure staircasing rights were present and unrestricted. The combined cost of the mortgage payment and subsidised rent was modelled to confirm affordability at current income.
The Outcome
First shared ownership home purchased in London. Combined mortgage and rent payment within comfortable affordability. The client has since staircased to 60% ownership, with Doulton arranging the remortgage on the increased share. Key highlights: Shared ownership mortgage - assessed on 40% share value; Staircasing rights confirmed in housing association lease; Client has since staircased to 60% - Doulton remortgaged the increased share.