Shared Ownership & Smarter Alternatives for Getting on the Property Ladder

Buying vs Waiting: A Practical Guide to Getting on the Property Ladder with Shared Ownership and Smarter Alternatives

“Don’t wait to buy property. Buy property and wait.” – Will Rogers

For many aspiring homeowners, the dream of owning a place to call their own feels just out of reach. Rising property prices, stagnant wages, and the growing cost of living have created a sense of paralysis. But amidst the doom and gloom, there are still pathways onto the property ladder—if you know where to look and how to tread wisely.

This article explores shared ownership and other viable entry points for first-time buyers, offering cautionary advice about what to avoid, and explaining why it’s often better to buy something now and wait, rather than waiting endlessly to buy the perfect property.

The Case for Buying Now, Not Later

Waiting to buy a home can feel like the sensible thing to do—especially if you’re hoping for prices to fall, your income to rise, or the perfect property to appear. But often, the longer you wait, the further the goalposts move. The cost of inaction can be just as real as the cost of inflation.

Even if you can’t afford your dream home today, buying a modest property now—within your means—can start your wealth-building journey. Once you’re on the ladder, you’re no longer chasing the market. You’re riding it.

That’s why many people are looking into alternative routes such as:

• Shared Ownership
• Help to Buy (resale units)
• Joint Borrower, Sole Proprietor mortgages
• Family-assist mortgages
• Buying with friends or siblings
• Buying auction or undervalued properties
• Lease extensions or staircasing with future plans in mind

What Is Shared Ownership?

Shared ownership is a government-backed scheme designed to help people buy a share of a property (usually between 25% and 75%) and pay subsidised rent on the remainder. Over time, you can purchase more shares—a process known as staircasing—until you own the property outright (though not always including the freehold).

Pros:

• Lower deposit requirements
• Smaller mortgage = more affordability
• Option to gradually buy more of the property

Cons:

• You still pay rent on the unsold share
• Limited choice of properties (often new builds)
• Complex resale and staircasing rules
• Leasehold-only (with service charges and ground rents)
• Valuation costs for each staircasing phase

For some, shared ownership is a great first step. But it’s not always the cheapest or most flexible route in the long term. You’ll need to check all the small print—especially regarding lease length, ground rent, service charges, and maintenance obligations.

Smart Alternatives to Consider

1. Joint Borrower, Sole Proprietor (JBSP) Mortgages

This structure allows a parent or family member to be on the mortgage but not on the title deed. It can boost your borrowing capacity while keeping stamp duty for first-time buyers lower.

2. Buying with Friends or Siblings

Pooling deposits and income with a trusted friend or sibling can make a bigger property more affordable. Just be sure to draw up a legal agreement outlining how ownership, responsibilities, and future exits will be handled.

3. Auction and Below-Market Opportunities

With the right guidance, properties at auction or off-market opportunities can present real value. However, they often come with challenges—structural, legal, or both—so always get professional support.

4. Family-Assisted Mortgages or Gifts

Some lenders offer family-backed mortgages that allow parents to use savings or equity as security without gifting cash. Gifted deposits are also an option, but must be properly documented to satisfy lender criteria.

Golden Rule: Buy Well, Not Just Now

While it’s true that getting on the ladder early can help you benefit from long-term appreciation, not all properties are equal. Buying the wrong property can end up costing you more in the long run. That’s why it’s vital to keep the following principles in mind.

⚠️ Avoid New Builds Where Possible

New-build homes often come with a premium price tag—sometimes 10–15% more than equivalent resale properties in the same area. That premium can vanish the moment you collect the keys, much like driving a brand-new car off the forecourt. Additionally, some new builds come with:

• Short leases (as low as 99 years)
• High service charges
• Ground rent escalation clauses
• Poor construction or finishing standards

✅ Favour Freehold Houses or Low-Rise Blocks

When choosing a property:

• Freehold homes offer the greatest control, with no service charges or leasehold issues.
• Choose low-rise blocks (ideally without lifts, gyms, or concierge services) to keep ongoing costs manageable.
• Always ask for the lease length. Leases under 90 years may be harder to sell and more expensive to extend.
• Enquire about ground rent and service charges. Is the ground rent escalating? Are there anticipated major works coming up?
• Look for resident-managed buildings over large managing agents for better transparency and cost-efficiency.

Questions to Ask Before You Commit

• What is the lease length, and can it be extended?
• Are there cladding issues, or is the building EWS1 compliant?
• How much are the ground rent and service charges, and have they increased in recent years?
• Are there any major works planned?
• Is the property in a conservation area or subject to restrictive covenants?
• What are the council tax and ongoing running costs?

Property Isn’t Just About Ownership—It’s About Strategy

Buying your first home should never be a rushed decision. But it should also not be endlessly delayed in pursuit of perfection. The goal is to get on the ladder in a way that suits your finances, future goals, and appetite for risk.

And you don’t have to do it alone.

Need Help Finding the Right Property?

At Empreso, our property sourcing agents understand the complexities of first-time buying. Whether you’re considering shared ownership, off-market opportunities, auction buys, or freehold fixer-uppers, we’re here to help.

We assist clients to:

• Define realistic goals and budgets
• Source and assess suitable properties
• Negotiate offers with sellers and agents
• Navigate the legal and financial process all the way to completion

You don’t just need a mortgage. You need a plan.

So if you’re ready to stop waiting and start moving, get in touch today to explore your options.

“You don’t have to buy the forever home now. You just have to buy the first step.”

Book a clarity session with one of our sourcing experts or mortgage advisers to begin your journey: https://network.empreso.co/clarity-review