What is Shared Ownership? 

Tonic@Bankhouse are our first properties - we have purchased 19 apartments to sell on a older persons shared ownership basis. Tonic will always own at least 25% of the properties to be held as a community asset. But, what does this mean?

What is Older Persons Shared Ownership and how does it work?

Older Persons Shared Ownership (OPSO) is a government scheme, overseen in London by the Greater London Authority. The scheme enables a part share of a property to be purchased, thereby reducing the price paid, so it is more affordable. The remaining share is owned by a housing provider, in this case Tonic Housing Association. All properties are sold on a leasehold basis.

Am I eligible for the Older Persons Shared Ownership scheme?

To be eligible you need to be:

  • aged 55 or over

  • be able to afford to purchase a shared ownership property

  • have a household income of less than £90,000 per year

  • be unable to purchase a property suitable to meet your needs on the open market (for example a full price retirement community property in central London with LGBT+ accreditation).

Current homeowners will need to sell their existing property to complete a purchase at Bankhouse, for this to become their main residence.

What percentage share can be purchased under the scheme?

Purchasers can choose to buy anything between a 25% to a 75% share in the property.

The scheme only lets you buy up to a 75% share of your home. 25% will always be owned by Tonic, and held as a community asset, which enables us to manage future sales to ensure we continue as an LGBT+ affirming community. No rent is charged on this held 25% share.

What other costs are involved in shared ownership?

Rent is payable on the equity share that you do not purchase up to 75% share. This is to cover Tonic’s costs of the loan on the unsold share and our on site staff. The rent charged is calculated at 2.75% of the unsold equity up to 75% share.

If you buy 75% there is no rent payable. Tonic has a rent calculator tool that we can use to advise purchasers on the actual rent for a specific apartment at different share purchase levels, so we can work to find out what suits you best.

Annual rent increases are limited to a maximum of Retail Price Index plus 0.5%.

In addition to the rent there is a standard service charge and admin fee. Full details of these are available in our sales information. Other costs are similar to most property purchases, although there is an option to just pay Stamp Duty on the price of the percentage share you purchase.

Can I buy more shares at a later date?

Yes it is possible to buy more shares up to 75% maximum if you wish to after your initial purchase. This is known as ‘staircasing’. This would be based on the valuation at that time.