Buying or Renting from us
You can buy shared ownership properties from L&Q, or rent properties from us at less than normal market rates. If you want to own your own home, but can't yet afford to do so, then our products are for you.
Here, we look at some of the details about:
Buying a shared ownership property
With L&Q shared ownership, you buy the maximum share that you can afford in a new-build or existing home.
What are the costs?
- Arrange a mortgage on a share of your home: shares start at 25%, and go up to a maximum of 75% of the full market value of your home
- Pay rent on the share you don't own: you pay rent on the share of the home you don't own, initially capped at a maximum of 3%
- Pay service charges (maybe): if you buy a flat or a house on an estate with shared areas, you will also pay a service charge for maintenance and upkeep of communal areas and the grounds of your building
Do I need a deposit?
You will need around £4000 and a deposit to cover your mortgage.
The £4000 will cover the cost of:
- mortgage valuation or survey
- legal fees
- stamp duty (if applicable)
The amount of deposit required for your mortgage will depend on:
- the mortgage provider you chose
- the terms of the mortgage
- your credit rating
Can I buy the remaining shares in my home in the future?
When you can afford to, you can take your next steps and increase the share you own; this is known as 'staircasing'.
The cost of the additional share that you buy will be based on the current market value of your home.
By buying an additional share through staircasing, you will reduce the amount of rent you pay.
If you staircase to the point where you own outright, you will no longer have to pay rent.
What if I am unable to get a mortgage?
In most cases you will be required to take out a mortgage to buy the maximum share that you can afford.
However, if you are unable to raise a mortgage because of age, disability or a conflict with religious beliefs we may be able to waive this requirement.
You will still be required to undergo a financial assessment to establish the maximum share you can afford to purchase.
How do I know if I am eligible?
Have a look at the eligibility criteria to find out if you're eligible.
I'm interested in buying a shared ownership property - where do I start?
Renting from L&Q
L&Q intermediate rent is designed to help potential first time buyers who cannot yet afford to buy a home, but want the chance to save for a deposit to purchase a home within the next 5 years.
Intermediate rent offers you the opportunity to rent a brand new or refurbished home, or a home that is being re-let at less than the market rate. The rent charged is normally approximately 20% lower than what you would expect to pay for a similar home in a similar area if you were renting from a private landlord.
As well as being more affordable, you have the assurance that your home is built, managed and let by a registered housing provider.
If you're interested in renting from L&Q, then you could start by browsing our rental properties.