If you need a mortgage later in life and affordability could be an issue, the Older People’s Shared Ownership (OPSO) scheme may offer the support you require.
Whether you plan to downsize or purchase a new home in retirement, OPSO is worth considering. This guide sets out how the scheme works and what you need to know.
What is Older People’s Shared Ownership?
Older People’s Shared Ownership is a government scheme designed to help people aged 55 and over purchase a home for less than the full market price by buying a share and co-owning the property with a housing association.
It’s worth noting that co-ownership through the scheme does not involve sharing your home with other people. It simply means you pay only a proportion of the purchase price and then pay rent to the housing association on the share it retains.
As a result, you may need a smaller mortgage than if you were purchasing 100% of the property, or you may need to put in less capital if you plan to buy outright.
How does the scheme work?
With OPSO, you can purchase between 25% and 75% of a property’s value, with the housing association owning the remaining share. You then pay rent on the portion you do not own, which is usually set at a discounted rate compared with renting privately.
Over time, you may be able to increase your share through a process known as staircasing. Once your ownership goes above 75%, you typically stop paying rent on the remaining share.
How OPSO differs from standard Shared Ownership
OPSO works in a similar way to standard Shared Ownership, but there are key differences, mainly around who can apply and how rent is treated:
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Eligibility: You must be 55 or over to qualify, whereas standard Shared Ownership is generally available to eligible buyers aged 18 and above. You also need to be purchasing a home specifically offered under the Older People’s Shared Ownership scheme.
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Rent changes: Rent is often lower than on standard Shared Ownership homes, and it is usually no longer payable once you own more than 75% of the property.
Full eligibility criteria
To qualify for Older People’s Shared Ownership, you’ll need to meet the following criteria:
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Age: You must be 55 or over.
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Income: Your household income must be below £80,000, or £90,000 in London.
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Property type: You can only purchase a home that is specifically marketed under the OPSO scheme, which can include purpose-built retirement accommodation.
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Location: The scheme is available in England only.
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Affordability: You must be unable to afford the deposit requirements or mortgage payments for a suitable home on the open market.
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Main residence: The property must be used as your primary home.
Is OPSO only for first-time buyers?
No. First-time buyers can apply, but you may still be eligible if you’ve owned a home before and can’t afford to purchase a new one that meets your needs.
You may also qualify if you are:
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Setting up a new household, for example after a separation or by moving in with a new partner
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An existing shared owner who wants to move to another shared ownership property
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A current homeowner who wants to move but cannot afford a suitable new home
If you already own a property, you’ll usually need to sell it before you complete on your new Shared Ownership home under the scheme.
How to get a mortgage for the OPSO scheme
Applying for a mortgage through the Older People’s Shared Ownership scheme follows the same process as a standard mortgage application. However, it’s sensible to speak to a mortgage broker who understands the scheme in detail before you begin.
At Money Helpdesk, our advisers specialise in OPSO mortgages and arrange finance for older borrowers every day. They can support you with each stage, including:
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Checking whether you meet the scheme’s eligibility rules
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Introducing you to registered providers offering OPSO homes in your area
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Explaining how to reserve a property and what happens next
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Securing an agreement in principle and moving on to a full mortgage application
If you would like impartial guidance on OPSO and how to arrange a mortgage through the scheme, get in touch to book a free, no-obligation chat.
Available mortgage lenders and scheme providers
The main difficulty when choosing a lender for an OPSO mortgage is that you sit within two specialist areas at the same time: Shared Ownership and later-life borrowing.
To secure the most suitable deal, you’ll usually need a lender with experience in both. That’s why it’s strongly recommended to speak to a broker before you start, as they can match you to lenders whose criteria align with the scheme.
Examples of lenders that may be a good fit include:
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Leeds Building Society: Often viewed as a leading lender for OPSO. They actively support the scheme and understand the key restriction that you cannot staircase above 75%.
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The Family Building Society: Focuses on later-life lending and is familiar with retirement-focused housing schemes.
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Melton Building Society: Known for a “common sense” approach and may consider OPSO applications where others are less flexible.
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Skipton Building Society: A major Shared Ownership lender, although you’ll need to check its specific rules on the “maximum share” point, as standard Shared Ownership can sometimes assume you will be able to buy 100% over time.
These are only a few examples of the lenders available. A broker can provide a full overview of your options and impartial advice on which lender is most appropriate for your circumstances.
Many OPSO homes are offered through specialist housing associations. It can be helpful to check their websites directly, as they often show availability and locations:
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Housing 21
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Anchor
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McCarthy Stone (partners with Homes England for some OPSO homes)
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Sanctuary Housing
Available locations
The Older People’s Shared Ownership scheme is available across England, although homes offered through the scheme tend to be more common in certain areas. Availability is often stronger in places such as coastal towns, the South East, and parts of the Midlands and North, where larger retirement developments have been built.
The scheme is available in London, and the household income limit is higher there. You can qualify with a household income under £90,000 in London, compared with £80,000 elsewhere in England.
OPSO is not available in Wales, Scotland, or Northern Ireland, but each nation has its own affordable homeownership options that may suit older applicants.
To find Older People’s Shared Ownership homes near you, you can use the location filters on the Share to Buy property search portal.
Frequently Asked Questions
If you die while you have an Older People’s Shared Ownership agreement in place, your spouse or civil partner can usually inherit the home and continue living there, as long as they were living in the property when you passed away.
You can leave the property to a beneficiary who is under 55, but they generally cannot move in unless they were your spouse or civil partner at the time of your death. If they are not allowed to live in the home, they will normally need to keep paying the rent and any service charges until the property is sold.