Shared Ownership

– Department is headed by Mr Sreekumar Narayanan

Getting onto the property ladder is not always easy. One way to get there is to buy a portion of a property while paying rent on the remainder. In other words, shared ownership can be your ticket onto the property ladder. But the legal arrangement is unique and complex. The leasehold agreement has to be legally sound and terms related to buying additional shares must be clear. Our team can aid you on all these fronts. This way, you remain well-informed about your options. 

Here’s how the process typically works:

1. Eligibility: Check eligibility for the scheme. Generally, shared ownership is available to first-time buyers, those who used to own a home but cannot afford to buy one now, or existing shared owners looking to move. Income thresholds apply, typically not exceeding £80,000 per year (£90,000 in London).
2. Find a Property: Identify a suitable property available for shared ownership. These are often new builds or resales through housing associations.
3. Determine Share: Decide on the share of the property to purchase, usually between 25% and 75%. The share size depends on affordability and the housing provider’s terms.
4. Mortgage and Deposit: Arrange a mortgage for the share being purchased. A deposit is required, typically 5% or 10% of the share’s value.
5. Instruct a Solicitor: Engage a solicitor experienced in shared ownership to handle the legal aspects of the purchase.
6. Lease Agreement: Enter into a lease agreement with the housing association. This lease typically lasts for 99 years and outlines rights and responsibilities, including rent payments on the unsold share.
7. Rent Payments: Pay rent on the share of the property not owned. Rent is usually set at a percentage of the property’s value, often around 2.75%.
8. Service Charges: Pay service charges for maintenance of communal areas and building insurance.
9. Staircasing: Over time, purchase additional shares in the property, a process known as staircasing. This can eventually lead to full ownership. Each staircasing transaction requires a valuation and legal fees.
10. Selling the Property: When selling, the housing association typically has the right to find a buyer for your share first. If they cannot, you can sell on the open market.

Key Considerations

1. Leasehold: Shared ownership properties are leasehold, meaning you own the property for the length of the lease agreement.
2. Valuation: Each staircasing transaction requires a valuation to determine the current market value of the property.
3. Restrictions: There may be restrictions on alterations to the property and subletting.
4. Costs: Consider ongoing costs, including rent, service charges, and maintenance.

Why Choose Us?

Transparent and efficient handling of paperwork.

Expert advice on shared ownership transactions.

Clear understanding of shared ownership terms and conditions.