What does Shared Ownership mean?

If one comes at a loss, and finds himself in great difficulty in the sense he cannot afford to buy a home, then shared ownership might be the solution. It is a mixed option, in which you partly own and partly rent your property; this scheme is a solution so that you are not living only with rent but you eventually also own half of a property. It is an option offered mostly by housing Associations, and here as opposed to a shared equity plan, you are the one who buys off between 30%-50% of the home, while the remainder is subject to paying rent.

And because it is not a permanent solution living with half rent half ownership, the housing association gives you the opportunity to acquire the rest of the property as well.
For example, you have a shared ownership scheme based home which’s value is £200,000. Say you bought half of it, while for the other half worth on the market £100,000, you pay rent.

Now, with the passing of years, you are allowed to buy off the remaining half of the property in say two steps, which actually represents the remainder 50% being split up in two 25% installments. In the first ten years you may already own 75% of the home while paying rent only for the remaining 25%, while in another 10 years you come to fully own the property if you pay off the final 25%.