Co-Own vs Co-Own for Over 55s
Here’s a handy comparison to help you work out whether Co-Own or Co-Own for Over 55s is right for you.
The main difference between our products is how you fund your share of the home, and the different stages of life they're designed for. Here's what you need to know.
Is Co-Own or Co-Own for Over 55s right for me?
The main difference between our products is how you fund your share of the home.
Choose Co-Own if you're using a mortgage to buy your share. This suits most first-time buyers, people returning to the housing market, and anyone who needs a mortgage to afford their share.
Choose Co-Own for Over 55s if you're aged 55 or over and using savings or money from selling your current home to buy your share, without needing a mortgage. This suits people who want to move to a home that better suits this stage of life, without taking on mortgage payments. Explore Co-Own for Over 55s.
Both products let you buy a share of your home, pay rent on Co-Ownership's share, and increase your share over time.
What's the same between the products
- Maximum property values of £230,000 for new build properties and £215,000 for existing properties
- The share you can buy: between 50% and 90%
- Rent on Co-Ownership's share: 2.5% per year of our share
- The ability to increase your share whenever you're ready
- 99-year lease
With both, the property you buy is your home, so you're free to decorate as you like, keep pets, and live like any other homeowner.
What's different between the products
| Co-Own | Co-Own for Over 55s | |
|---|---|---|
| How you fund your share | Mortgage | Savings or equity from sale of your current home |
| Age requirement | Any age | 55 or older |
| Deposit | May not be required with some lenders | Must use proceeds from property sale or available savings |
| Maximum amount of savings you can keep | Up to £13,000 | Up to £26,000 |
| Monthly mortgage payment | Yes, to your lender | No mortgage required |
| Legal costs for selling your current home | Not applicable | These are your responsibility |
Co-Own vs Co-Own for Over 55s video
Not sure which Co-Ownership product is right for you? This short explainer video details the difference between Co-Own and Co-Own for Over 55s, so you can be confident that you're choosing the right product for your circumstances.
How each product works
Co-Own: Using a mortgage
Co-Own is designed for people who need a mortgage to buy their share of a home. You might be struggling to save enough for a full deposit, returning to home ownership after a relationship breakdown or other life change, or wanting to get onto the housing ladder rather than spending years renting.
How it works:
- You apply to Co-Ownership and, if approved, you arrange a mortgage for your share with one of our partner lenders. Some lenders offer products that don't need a deposit. You buy a share of between 50% and 90% and Co-Ownership buys the rest. Each month you pay your mortgage to your lender and rent to Co-Ownership.
- Your mortgage is your responsibility. If you miss mortgage payments or rent payments, your home could be at risk of repossession.
- You'll need to keep buildings insurance in place and maintain your home to the same standard as when you bought it.
- You can remortgage when your deal ends, potentially switching to a better rate or a different lender. Many Co-Own customers use remortgaging as an opportunity to increase their share by borrowing additional funds.
Co-Own for Over 55s: No mortgage
Co-Own for Over 55s is designed for people aged 55 and over who want to move to a home that better suits their needs, which they wouldn’t be able to afford on their own. You might be downsizing from a larger family home, relocating to an area that suits you better, moving to a property that's easier to manage or more suitable for your needs, or looking for a fresh start without the long-term commitment of a mortgage.
How it works:
- You use money from selling your current home, or savings you already have, to buy a share of your new home. You can keep up to £26,000 from the sale proceeds or your savings for other purposes. Anything above this must go towards buying your share. You buy a share between 50% and 90%, and Co-Ownership buys the rest. Each month you pay a modest rent to Co-Ownership on our share, and there’s no mortgage payment. This is different from equity release. With equity release, you stay in your current home and borrow against its value. With Co-Own for Over 55s, you're moving to a new property and using your existing equity or savings to buy a share, with no borrowing involved.
- If you're selling your current home, you're responsible for all legal costs and fees related to that sale. Our legal package covers the purchase of your new Co-Ownership home.
- If once you're a Co-Ownership customer your circumstances change and you're no longer living in the property on a long-term basis, the property must be sold. The proceeds from the sale are split between you or your estate and Co-Ownership, according to the ownership shares agreed.
Important things to know before you apply
Regardless of which product you choose, here's a few key details to note:
- You need to contact us if you're undertaking structural changes like adding extensions, loft conversions, or removing walls. Find out more about making home improvements.
- Your 99-year lease gives you long-term security and means you're responsible for maintaining your home to at least the standard it was in when you bought it. When you buy a bigger share, the property is valued based on it being maintained to this standard.
- You are responsible for paying all the usual household costs. This includes rent to Co-Ownership, your mortgage if applicable, council rates, buildings insurance, service charges if applicable, and all utilities and day-to-day running costs.
- Rent doesn't reduce the amount you owe Co-Ownership. The monthly rent you pay is for living in Co-Ownership's share. It's not deducted from the cost if you decide to buy more of your home later.
- You can't sublet or run a business from your home. Your Co-Ownership property must be your main residence. You can't rent it out or use it for business purposes.
- Legal costs are covered for your Co-Ownership purchase. Our Legal Fee contributes towards a legal package that covers most costs for buying your new home through Co-Ownership. To use this package, you must instruct an approved solicitor from our panel.
- As co-owners, we share the risk and the reward. As property values go up, we both benefit when you increase your share or sell. When values go down, we both share in the loss.
- We're a charity. Any money we receive when you sell your home or buy a bigger share, goes back into helping more local people start their home ownership journey.
Highly recommend Co-Own for First Time Buyers! I didn’t think I’d ever be able to buy a home and Co-Own made it all possible! Always incredibly helpful and easy to get in contact with. Never made to feel like my questions were silly! Thank you Co-Own.
Is Co-Ownership right for you?
Check whether Co-Ownership is a good fit for you and if you're likely to meet our eligibility criteria.
Check your eligibility
Taking the next step
Find out what's involved in our application process, the kinds of documents you'll need to provide, and key milestones throughout.
Learn about our application processFrequently asked questions
Need help deciding?
Whether you're considering Co-Own or Co-Own for Over 55s, our team can help you understand which option best fits your circumstances.
Start with our Eligibility Checker, or book an appointment to speak with a member of the team.
