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Two people with two bits of a pie chart. SAM Conveyancing explains the Heylo Shared Ownership scheme, how it works, and how to use it

Heylo Housing Shared Ownership

Last Updated: 18/09/2025
1,313
7 min read

Heylo Housing offers a unique shared ownership scheme that allows you to buy a property without a traditional mortgage. It has its own specific rules for eligibility and costs, which can be confusing.

This guide breaks down exactly how Heylo’s Your Home and Home Reach schemes work, detailing the full process, the costs involved, and the potential downsides you need to be aware of.



What is Heylo Shared Ownership?

Heylo Shared Ownership lets you buy a portion of a property and pay rent on the rest. Unlike traditional shared ownership, you don’t need a mortgage for your initial purchase.

Instead, Heylo acts as a cash buyer for the whole property. You then buy your share from them, and they become your landlord for the remaining part.

Your Home

This is Heylo’s scheme for buying existing, second-hand properties on the open market.

It's designed for buyers who want to purchase an established home rather than a new build.

You find a property with a traditional estate agent and then apply to Heylo to buy it through their scheme.

Home Reach

This scheme is for buying brand-new homes. You purchase a new-build property from a developer that has partnered with Heylo.

The developer will advertise that the home is available via the Home Reach scheme, and you will work with them to secure the property.


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Eligibility criteria for Heylo Housing Shared Ownership

To qualify for either of Heylo’s shared ownership schemes, you must meet a specific set of criteria. Heylo assesses your application based on your personal circumstances and the property you want to buy.


Personal Requirements

  • Your household income must be below £80,000 (£90,000 in London).
  • You must have a minimum deposit of 10% of the property's value.
  • You must have a good credit history with no outstanding CCJs or bankruptcy.
  • You must be a British or EU citizen or have an indefinite right to remain in the UK.
  • The property must be your main and only residence, and you cannot use the scheme for a buy-to-let investment.

Property Requirements (for 'Your Home' scheme)

  • The property must be of traditional construction and in good, habitable condition.
  • It must be a second-hand property, at least one year old, and cannot have been sold at auction.



The upfront and ongoing costs of Heylo Shared Ownership

When you buy a Heylo property, you'll have to pay a number of fees both at the start and monthly. Heylo recommends having between £4,000 and £6,000 set aside to cover these initial costs, including any Stamp Duty.

Cost
Type
Description
Amount/Rate
Cost

Deposit

Type

Upfront

Description

Minimum deposit required on the full market value.

Amount/Rate

10% for Home Reach. From 25% for Your Home.

Cost

Product Fee

Type

Upfront

Description

Fixed fee for setting up the Heylo contract.

Amount/Rate

None for Home Reach. From £2,000 for Your Home.

Cost

Property Searches

Type

Upfront

Description

Cost for required legal searches.

Amount/Rate

Approx £500

Cost

Conveyancing

Type

Upfront

Description

Legal fees for the solicitor.

Amount/Rate

Varies, our fees start from £723 INC VAT.

Cost

RICS Valuation

Type

Upfront

Description

Required survey to establish the property's value.

Amount/Rate

Varies, our fees start from £375 EXC VAT.

Cost

Rent

Type

Ongoing

Description

Paid on the unowned portion of the property.

Amount/Rate

4.89% of unowned share for Home Reach. 5.89% for Your Home. Increases annually by RPI + 0.5%.

Cost

Buldings Insurance

Type

Ongoing

Description

Paid annually to Heylo.

Amount/Rate

£120 per year.

Cost

Management Fees

Type

Ongoing

Description

If applicable, service charges from a management company.

Amount/Rate

£26.43 per month.


While Heylo only requires a basic RICS valuation, we always recommend getting a full RICS Homebuyers Survey. It includes the valuation you need but also checks for major and minor defects.

This gives you a complete picture of the property’s condition before you commit to the purchase. To understand which survey is right for your property, read our guide on the difference between Level 2 and Level 3 surveys.




Pros and cons of Heylo Shared Ownership


Pros

  • Access to the Market: The scheme allows you to buy a home without a traditional mortgage, making it an option for those who may not meet standard lending criteria due to income or credit history.
  • Lower Upfront Deposit: For the Home Reach scheme, you only need a 10% deposit on your share of the property, not the full price.
  • More Generous Lease: Heylo's shared ownership lease is for 999 years, often referred to as a 'virtual freehold'. This is much longer and more secure than most other shared ownership leases.
  • Profit from the Sale: When you sell, you get 75% of any increase in value on the share you don't own, in addition to the full value of the share you do own. This is a unique benefit of the scheme.

Cons

  • Higher Deposit on 'Your Home' Scheme: Unlike standard shared ownership, the 'Your Home' scheme requires a much higher upfront deposit of 25% of the property’s value.
  • Ongoing Costs: You will always have to pay rent and other fees on the portion of the property you don’t own. The rent increases annually with inflation (RPI), and so do the management fees.
  • Complex Conveyancing: The legal process for shared ownership is more complex and often more expensive than a standard purchase.
  • Limited Choice: With the 'Home Reach' scheme, you are limited to new builds from specific developers that have partnered with Heylo.


The HOLD Scheme

If you live with a long-term disability, HOLD Shared Ownership Scheme may be more suitable for you.



How to buy a Heylo home

The process of buying a Heylo property is a little different from a traditional purchase. It involves a few key steps to get you from application to completion.

  • 1

    Apply to Heylo

First, you must apply directly to Heylo. They will conduct a financial assessment to determine your eligibility and the maximum property value you can afford. If successful, you will receive an Agreement in Principle.

  • 2

    Find a Property

The next step depends on the scheme you are using. With Home Reach, you must choose a new build from a partner developer. With Your Home, you can find any existing freehold property on the open market.

  • 3

    Instruct Professionals

Once an offer is accepted, you must instruct a solicitor who has experience with Heylo purchases. At the same time, you are required to get a RICS valuation to confirm the property's value. This is a critical step, as Heylo will not proceed without it.

  • 4

    Finalise the Purchase

Your solicitor will work with Heylo's legal team to finalise the purchase. Heylo acts as a cash buyer for the full property, and you will buy your agreed-upon share from them.

Once all legal checks are complete, you pay your deposit and legal fees, and the purchase can be finalised.


Staircasing and your exit strategy

Once you own your Heylo property, you may want to increase the share you own. This process, known as staircasing, allows you to buy more equity in the home, which in turn reduces the amount of rent you pay. Heylo's lease allows you to staircase at any time, up to 100% ownership.

The process involves getting a new RICS valuation and paying the costs of the legal work. It is worth noting that your staircasing transactions may be subject to Stamp Duty Land Tax.

Selling a Heylo property

When you want to sell, your lease will outline the process. With the Your Home scheme, you can sell your property on the open market like any other home. With the Home Reach scheme, Heylo has the right to find a buyer first. For more information, you should review your lease carefully and contact Heylo's resales team.

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Andrew Boast of Sam Conveyancing
Written by:

Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.

Caragh Bailey, Digital Marketing Manager
Reviewed by:

Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.


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