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Shared Ownership

What is Shared Ownership?

Shared ownership was a scheme that was introduced by the Government to assist first time buyers to purchase a home using a combination of renting and owning a (house) property.

Shared ownership housing is aimed at people who cannot afford to buy a house outright on the open housing market, but are still keen and financially able to make a start on the housing ladder. The occupier purchases a share (typically starting with 25%) in the ownership of the property and pays and Occupancy Charge (rent) on the remainder.

Shared Ownership has now been replaced by the Shared Equity Scheme.

Like other home owners you will be responsible for all internal and external repairs for your property and any ongoing maintenance costs. If your home has common and shared areas (flats for example) you will be responsible for paying any common maintenance or service charges.

A summary of the costs that you will be expected to pay to run your home are as follows:

  • Mortgage repayments
  • Occupancy charge (rent)
  • Service charges, e.g. close cleaning, window cleaning, management fee
  • Home contents insurance
  • All repairs and maintenance to your property
  • Council Tax;
  • Heating, lighting and water bills
  • Fittings and furniture (i.e. you will responsible for supplying your own fittings and furniture for your home)

The occupancy charge and service charges are reviewed on an annual basis and you will be advised in writing, 28 days before any increases are due to take place. Increases will take effect on 28th April each year.

The Shared Ownership Agreement that you enter into with the Association is for a 20 year period. At the end of the 20 year period you have the option to enter into another Occupancy Agreement with the Association, or to sell your tranche in the property on the open market. The opportunity to enter into another Occupancy Agreement will depend on certain technical legal issues being satisfactorily overcome. You will be contacted by the Association in advance of that date to agree an appropriate way forward.

Under the terms of the Occupancy Agreement that you entered into with the Association, you must pay an occupancy charge. If you find that you are experiencing financial difficulties, you are advised to contact the Association immediately.

You are only allowed to let or sub-let your property with the Association’s prior written consent.

The law imposes obligations on private landlords to register with their local authority to ensure that they are a “fit and proper person” to let a property, and failure to comply is an offence. Any consent to sub-let a property will be conditional on you complying with these provisions. Further information on the registration process is located on the Scottish Government website.

You must ensure that any lease provided to a tenant is a properly constituted private residential tenancy that contains certain rights to terminate. Should you decide to go down this route, you will still be responsible for the payment of all the charges on the property.

You will have the option to buy additional shares anytime after the first anniversary of your initial purchase. This is often known as a ‘tranche’. If you would like to purchase an additional tranche, please contact the Association.

The open market value of the property will be determined by the District Valuer or other such professionally qualified persons.

When you purchase an additional share in your property, the occupancy agreement that you pay to the Association will be recalculated to reflect the reduction in the share owned by the Association.

You can sell your home or your share at any time, but you must inform the Association in writing that you wish to move.

Before your property is placed on the market for sale, you will need to obtain a Home Report.

If, for example, you have a 25% stake in your property when you want to move, then you will get 25% of the selling price when it is sold.

You will be responsible for meeting the costs of marketing your house if you sell it on the open market.

Paying your occupancy/service charge

Occupancy/service charges are charged on a monthly basis and are due on the 28th of each month in advance.

Sharing Owners can pay their account by the following methods:

You can go on-line and log into your own bank account and make payment to the following account:

  • Account Name: Govan Housing Association Ltd
  • Account Number: 00130125
  • Sort code: 83-21-16

You must quote your account number as a reference in order for us to allocate your payment.

If paying by cheque, please ensure that you write your account number on the back of your cheque to enable your payment to be matched to your account. Cheques should be made payable to Govan Housing Association Ltd and posted to Govan Housing Factoring Department, 35 McKechnie Street, Glasgow, G51 3AQ. Please do not send cash by post.

You can pay your account by debit or credit card by visiting or calling the office and asking for the factoring department.

You can make a payment at any branch of the Royal Bank of Scotland or at the Post Office using a bank giro slip. If you wish to use this method, please call the factoring department 0141 440 0308 to request a giro slip.

This method allows you to spread the cost of your account by monthly payments. If you wish to instruct this form of payment, please call the factoring department on 0141 440 0308.