Older Persons Shared Ownership at The Signals

At The Signals we offer you the opportunity to buy a new home through the Older Persons Shared Ownership scheme. 

What is Older Persons Shared Ownership?

Older Persons Shared Ownership (also known as OPSO) is a scheme that works in a similar way to Shared Ownership, meaning that the purchaser buys a share in a property – usually between 25% to 75% – through a mortgage or savings, and then pays a subsidised rent to a housing association on the remainder.

This means that monthly costs are often much smaller than a full mortgage or privately renting a home.

How is Older Persons Shared Ownership different to Shared Ownership?

Other than variances in the age criteria, the key difference with OPSO from Shared Ownership is that the maximum share that you can buy is normally 75%, rather than the usual 100%. However, on the majority of OPSO homes once a purchaser owns 75%, there is no rent payable on the remaining 25% share.

Can I buy more shares?

You can choose to buy more shares in your home as and when you can afford to. As you buy more shares, your mortgage (if applicable) will increase and your rent will decrease.

If you choose to staircase to the maximum 75% share of an OPSO home you will continue to pay your mortgage (if applicable) but will no longer pay any rent on the remaining 25%.

What are the eligibility criteria for Older Persons Shared Ownership?

If you choose to apply for the OPSO scheme, the general eligibility criteria are:

• You must be aged 55 years or older 
  • However, some OPSO developments will allow a couple where the main applicant is 55 but a second applicant is 50 or older
• Your maximum household income must not exceed £80,000
• You should be unable to purchase a home suitable for your needs without assistance
• You do not already own a home, or you will need to sell any existing property owned before purchasing through the scheme
• You will need to be able to secure a mortgage or have sufficient savings to pay the share in full if retired
• You must not have any outstanding credit issues such as unsatisfied defaults or county court judgements.

What if I need additional care in my home?

Some developments offer OPSO alongside a scheme called Extra Care. This is designed to provide residents with the ability to live independently in their own home while still having access to care and support services tailored to their individual needs.

If applying for an Extra Care development, the buyer must have a minimum number of hours care requirement per week and a connection to the location area.

Extra Care is not available within every development and would need to be discussed with the relevant housing provider at the outset.

Example of how much it would cost you

Here is a worked example of how much it would cost based on a property market value of £400,000 and 50% equity share purchased:

• Property market value = £400,000
• Equity share purchased = 50%
• Payment at initial sale = £200,000
• Monthly rental payment = £458

Residents can purchase further shares of their apartment in the future using the market value at the time of purchase. The maximum share purchase is 75%, at which point their rent falls to zero.

Making the right choice for you

If you’d like more information about The Signals, and the properties available to buy through the Older Persons Shared Ownership scheme at the development, please get in touch. We’d be delighted to hear from you.

We also offer Personalised Affordability Guidance because we understand that moving to a retirement living development is a significant decision, and affordability plays a crucial role. Our dedicated Be Wise team is available to provide you with personalised guidance and can help you explore various options that suit your needs and budget.

Whether renting or buying a new home, moving is always a big decision and it is important you feel confident in your choices. We encourage you to seek independent advice and discuss your options with your family and your legal advisers in detail.