If you’re looking for a mortgage in later life but might struggle with affordability, the Older People’s Shared Ownership (OPSO) scheme could provide the support you need.
Whether you’re looking to downsize or simply buy a new home in retirement, OPSO is worth exploring. Here you will learn all you need to know about the scheme.
What is Older People’s Shared Ownership?
Older People’s Shared Ownership is a government scheme that helps people over 55 buy a home at a reduced price by entering a co-ownership agreement with a housing association.
It’s important to clarify that co-owning a property through the scheme does not mean a shared living arrangement with strangers. It simply means you only have to pay a percentage of the purchase price and pay rent to the association for the portion they own.
This means you would need a much smaller mortgage than you would if you were buying 100% of the property or need to stump up less capital to buy it outright.
How exactly does the scheme work?
With OPSO you can buy a home by paying anywhere between 25% and 75% of its purchase price while the housing association owns the remaining portion. Rent is then payable on the remaining percentage, typically charged at a discounted rate compared to the open market.
It is possible to increase your stake in the property over time through a process called staircasing, and when you exceed 75% ownership, no rent is due on the other portion.
How OPSO is different to regular Shared Ownership
There are a few differences between OPSO and standard Shared Ownership, largely related to the eligibility criteria and how rent payments work, including:
-
Eligibility: You must be 55 or over to qualify while standard Shared Ownership is available to first-time buyers over the age of 18. Applicants must also be buying a property that is advertised under the Older People’s Shared Ownership scheme.
-
Rent abolition: Rent payments are typically lower than they are for standard Shared Ownership properties and they are no longer required from 75% ownership and up.
Full eligibility criteria
To qualify for Older People’s Shared Ownership you will need to meet these requirements:
-
Age cap: You must be 55 or over to apply.
-
Income: Your household income must be under £80k, or £90k in London.
-
Property types: You can only buy a property that is advertised under the OPSO scheme, which includes purpose-built retirement accommodation.
-
Locations: The OPSO scheme is only available in England.
-
Buyer status: You can only use the scheme if you are unable to afford the deposit requirements or mortgage payments for a home that meets your needs.
In addition, the property you are buying can only be used as a primary residence.
Is the scheme only open to first-time buyers?
No, but they are one of the groups that would qualify for it. You would also fit the criteria for the scheme if you have owned a home before but can’t afford to buy a new one.
You will also satisfy the requirements for OPSO if you are…
-
Forming a new household due to a separation or a new cohabitation
-
An existing shared owner and want to move to a new property
-
A homeowner who wants to move but cannot afford a new home that meets your needs
If you are using the scheme but already own a property, you must have completed the sale of your existing home before you complete on your new Shared Ownership property.
How to get a mortgage for the OPSO scheme
Getting a mortgage to buy through the Older People’s Shared Ownership scheme involves all of the same steps as a standard mortgage application, but we recommend speaking to a mortgage broker who knows the scheme inside out before you get started.
At Money Helpdesk, we have advisers who specialise in OPSO mortgages and arrange finance for older borrowers every day. They will guide you through the following steps:
-
Checking you are eligible for the scheme
-
Putting you in touch with registered providers OPSO homes in your area
-
Guiding your through the process of reserving your home
-
Securing an agreement in principle and progressing to full mortgage application
For impartial guidance about the scheme and how to get a mortgage through it, get in touch below to book a free, no-obligation chat with a broker who specialises in Shared Ownership.
Begin your mortgage journey
Available mortgage lenders and scheme providers
The biggest challenge in finding the right lender for an OPSO mortgage is that you, as a customer, fall into two niche categories: Shared Ownership and later-life borrowing.
You will need a lender who specialises in both of these areas to get the best deal, which is why speaking to a broker before you begin is highly recommended.
Examples of lenders who fit this criteria include:
-
Leeds Building Society: Considered the market leader for OPSO. They explicitly support the scheme and understand the specific restriction where you cannot staircase beyond 75%.
-
The Family Building Society: Specialise in later-life lending and are very familiar with retirement-specific housing schemes.
-
Melton Building Society: Takes a "common sense" approach to lending and often accepts OPSO cases.=
-
Skipton Building Society: major shared ownership lender, though you must check their specific criteria regarding the "maximum share" rule, as standard shared ownership usually requires the ability to buy 100%.
These are merely a handful of the available lenders. Speak to a broker for a full breakdown of them all and impartial advice about which one is the best fit for you.
A significant portion of OPSO homes are managed by specialist Housing Associations, listed below. Checking their websites directly is often the best way to see a map of locations:
-
Housing 21
-
Anchor
-
McCarthy Stone (partners with Homes England for OPSO units)
-
Sanctuary Housing
Available locations
The Older People’s Shared Ownership scheme is available nationwide, but supported properties are more readily available in certain locations, such as coastal towns, the South East, and the Midlands/North, where major new developments have been constructed.
It is available in London and the income threshold is higher there compared to the rest of the UK, with households able to qualify with an income of under £90k, rather than £80k.
OPSO is not available in Wales, Northern Ireland or Scotland but each of these countries has its own version of Shared Ownership that does accept older applicants.
You can search for Older People’s Shared Ownership housing in your area by using the location filters on the Share to Buy portal.
Why choose Money Helpdesk for your Shared Ownership mortgage?
As specialists in Shared Ownership and the needs of later life borrowers, our advisers can find you the best deal for your Shared Ownership mortgage - regardless of your circumstances and the size of the share you’re looking to purchase.
Whether you want to maximise how much you can borrow or secure the best rates, we can help you find the right solution for your situation and home ownership goals.
Here are some more of the reasons people choose us to help them get the best mortgage deal through the OPSO scheme:
-
Our advisers specialise in the OPSO scheme
-
We can introduce you to specialist lenders with more flexibility
-
Our mortgage brokers are 5-star rated on leading review sites
-
Your first chat is free, with no obligation to proceed
Ready to take advantage of a free, no-obligation chat with a broker who specialises in Older People’s Shared Ownership mortgages? Get started here.
FAQs
If you die with an Older People’s Shared Ownership agreement in place, your spouse can inherit the property and live there, if they were residing there at the time of your passing.
You can name a beneficiary under the age of 55 but they cannot live in the property unless they were your spouse or civil partner before you died. If they are unable to live in the property, they must continue paying service charges and rent until it is sold.