Older Persons Shared Ownership: What is it and how does it work?

How can Older Persons Shared Ownership help me buy a home?

Shared Ownership is a popular option amongst first time buyers and growing families, but did you know that the scheme is also open to older purchasers?

Older Persons Shared Ownership (OPSO) is a housing scheme in England designed to assist individuals aged 55 and over in purchasing a home – whether it be because they’re looking to downsize from their existing family home or their current abode simply isn’t suitable for their needs anymore.

What is Older Persons Shared Ownership?

This scheme works similarly to Shared Ownership, meaning through OPSO, eligible participants can buy a share of a property – typically between 10% and 75% (through a mortgage or savings) – and pay a subsidised rent to a housing association on the remaining portion.

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 between OPSO and Shared Ownership is that the maximum share you can go on to buy is normally capped at 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, making it a financially appealing option.

How does Older Persons Shared Ownership work?

1. Purchasing a share: Buyers select a property available under the OPSO scheme and work out the share they can afford to purchase, ranging from 10% to 75% of the home’s value.
2. Financing: The purchased share is typically financed through savings or a mortgage, depending on individual circumstances and lender criteria.
3. Rent payments: A subsidised rent is paid on the remaining share of the property. However, if you go on to purchase a 75% share of your home, you typically won’t pay rent on the remaining 25%, reducing monthly outgoings.
4. Staircasing: Unlike traditional Shared Ownership schemes, OPSO generally restricts staircasing beyond 75% ownership. This ensures the properties remain affordable and available to other eligible homebuyers in the future.

What are the benefits of buying a home through the Older Persons Shared Ownership scheme?

• Affordability: OPSO provides a more affordable route to homeownership for people aged 55 and over, reducing the financial burden compared to purchasing a property outright.
• Security: Owning a share of your home offers greater security compared to private renting, with the added benefit of not paying rent once 75% ownership is achieved.
• Tailored properties: Many OPSO homes are designed with older buyers and seniors in mind, featuring adaptations like step-free access, emergency alarm systems, and proximity to essential amenities.

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 homes while still having access to care and support services tailored to their individual needs.

If applying for an Extra Care development, the buyer must usually have a minimum number of hours of 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.

How do I find a home through Older Persons Shared Ownership?

If you think that Older Persons Shared Ownership is the next step in your home-buying journey, visit our property portal to find available homes in your area.

You can also learn more about the eligibility criteria and costs of buying an Older Persons Shared Ownership home on our website.