How to Pay Yourself as a Shared Ownership Home Owner

When you own a share of a home through a shared ownership scheme, you might assume you’re just a tenant with a bit of equity. But you’re not. You’re a partial owner - and that means you have rights, responsibilities, and yes, a way to get paid back for your investment. The big question isn’t whether you can pay yourself - it’s how to do it legally, sustainably, and without breaking the rules of your housing association or mortgage lender.

Shared ownership isn’t rent - it’s investment

Many people think shared ownership is just a cheaper way to rent. It’s not. You own a percentage of the property - usually between 25% and 75% - and pay rent on the rest. That rent goes to a housing association, not a private landlord. But unlike renting, your share builds equity. When the property value goes up, your portion goes up too. That’s real wealth creation.

So if you’re putting down money for your share, paying mortgage payments, covering maintenance, and contributing to service charges, you’re investing capital. And like any investor, you should expect a return. The trick is figuring out how to access that return without violating your shared ownership agreement.

There’s no salary - but there are ways to withdraw value

You can’t just write yourself a paycheck like a business owner. Shared ownership homes aren’t corporations. You don’t have employees, payroll, or a formal business structure. But you can still extract value from your ownership stake - and there are three legal, common ways to do it.

• Staircasing and cashing out - If you buy more shares over time (called staircasing), you can eventually own 100% of the property. At that point, you can sell it and pocket the full profit. Many owners use this as their primary way to pay themselves - by gradually increasing ownership and selling when it makes sense financially.
• Remortgaging to release equity - If your home has increased in value, you can refinance your mortgage to borrow against the equity you’ve built. This isn’t income - it’s a loan - but you can use the cash for anything: home improvements, debt payoff, or personal expenses. As long as your lender and housing association allow it (most do), this is a legal way to access your investment.
• Renting out your share (if allowed) - Some shared ownership agreements let you sublet your portion, especially if you’re moving for work or need temporary income. This isn’t common, and it’s heavily restricted. You’ll need written permission from your housing association. But if approved, the rent you collect from a tenant is pure income - and it’s yours to keep.

What you can’t do - and why it matters

There are strict rules in shared ownership. Violating them can cost you your home. Here’s what’s off-limits:

• Don’t treat it like a business - You can’t claim business expenses, deduct mortgage interest as a business cost, or file as self-employed for this property. The government and housing associations treat shared ownership as a personal residence, not a commercial asset.
• Don’t ignore service charges - Even if you’re not using the property, you still pay maintenance fees. Falling behind can lead to eviction, even if you own 90% of the home.
• Don’t rent without permission - Some housing associations ban subletting entirely. Others allow it only for short-term reasons like relocation. Always check your lease.
• Don’t assume you can sell anytime - Most shared ownership agreements require you to offer the property back to the housing association first. They have the right to find a buyer before you can list it publicly. This can delay your payout.

Real example: How Sarah paid herself over five years

Sarah bought a 50% share in a two-bedroom flat in Manchester in 2021 for £110,000. She paid £55,000 upfront and took out a £55,000 mortgage. Her monthly payments were £750 - £500 for mortgage, £250 for rent on the other half.

By 2025, the property value had risen to £180,000. Her 50% share was now worth £90,000. She had paid down £10,000 of her mortgage, so her equity was £65,000. She didn’t sell. Instead, she:

1. Staircased to 75% ownership by paying £35,000 (based on the new valuation).
2. Remortgaged with a new lender who let her borrow £40,000 against her increased equity.
3. Used the £40,000 to pay off credit card debt, fund a course, and save for a future full purchase.

She didn’t get a salary. But she turned her equity into cash - legally and safely. That’s how you pay yourself in shared ownership.

When to think about selling your share

You don’t have to wait until you own 100% to cash out. If you need money, you can sell your current share - even if it’s only 25%. But here’s the catch: you get paid based on the current market value of your percentage.

For example: if your 25% share is worth £50,000 today, you’ll get £50,000 minus selling fees and any outstanding mortgage balance. You don’t get your original investment back - you get the current value. That’s the power of appreciation.

Many owners sell their share when they need to move for work, start a family, or want to upgrade. Others hold on for years, letting their share grow in value. There’s no right or wrong - just what fits your life.

Taxes and legal stuff you can’t ignore

When you sell your share, you might owe capital gains tax - but only if you made a profit and the property wasn’t your main home for the entire time you owned it. If you lived in it as your primary residence, you’re usually exempt under Private Residence Relief.

Also, when you staircase, you’ll pay a valuation fee, legal fees, and possibly stamp duty if your new share pushes you over the threshold. In England, stamp duty kicks in at £250,000 for shared ownership purchases. That’s rare for most staircasing cases, but always check.

Keep records of every payment: your initial purchase, staircasing costs, mortgage statements, and valuations. These prove your equity and help with taxes later.

What to do next

Start by reviewing your shared ownership lease. Look for sections on:

• Staircasing rules (how often you can buy more, minimum share you must keep)
• Subletting permissions
• Valuation process (who does it, how often)
• Selling procedures (right of first refusal)

Then talk to your housing association. Ask:

• Can I remortgage to release equity?
• What’s the current value of my share?
• What are the fees for staircasing?

Finally, get advice from a solicitor who knows shared ownership law. Not all property lawyers do. Find one who’s handled at least five shared ownership transactions in the last year.

Bottom line

You don’t get a monthly paycheck as a shared ownership owner. But you’re not stuck. You have options to turn your equity into cash - through staircasing, remortgaging, or selling. The key is patience, planning, and knowing the rules. This isn’t a quick profit scheme. It’s a long-term way to build wealth while living in a home you partly own. Do it right, and you’re not just paying yourself - you’re building a future.