Shared Ownership

Shared ownership schemes offer a low cost way to get on the home ownership ladder, for people with low incomes.

There are different schemes available. Shared-ownership makes home ownership more affordable because you can part-buy and part-rent your home.  You may be able to buy a 25%, 50% or 75% share in your home. In addition, you pay a small rent on the share that you do not buy. The bigger the share that you purchase, the less rent you have to pay. When you can afford to do so, you can buy more shares until you own your home outright, as long as the scheme allows 100% ownership.

Shared Ownership and Homebuy schemes are managed locally by housing association 'agents' and www.shared-ownership.org.uk provides a comprehensive listing of housing associations that provide shared ownership housing.

Shared ownership housing schemes are usually intended for people who cannot afford to buy a suitable home in any other way or keyworkers such as teachers or police officers. Applicants must usually be in housing need and be unable to afford outright purchase. Priority will often be given to people on local authority or housing association waiting lists.

However, when a new housing scheme is developed that includes shared-ownership homes for sale, housing associations often have to work hard initially to sell the shared ownership properties. This is because, when the new homes are first available the association usually has a number of homes available for sale all at one time. Consequently, you should apply to the local authority or a housing association that offers shared ownership housing in your area as soon as possible.

You don't have to find a new housing development to be able to buy a shared ownership property. When shared owners want to move home, their property will either be offered to the housing association to find a buyer, or will be advertised in the local estate agents.

The shared ownership lease between you and the housing association will set out your rights and responsibilities as a shared owner. Although you have not bought the property outright, you will have the normal rights and responsibilities of a full owner-occupier. In particular, you will normally be fully responsible for the cost of repair and maintenance to your home unless it is a flat where certain common parts may be the responsibility of the flat owners collectively through payments known as service charges.

Not all lenders will lend on shared ownership schemes so you may need to speak with an independent financial adviser regarding your individual requirements.
 
Shared ownership scemes are extremely complex when it comes to the legal formalities, leases and mortgage requirements. It is importnant that you choose a solicitor with experience in dealing with these types of property such as Elliot Mather.

Please telephone your nearest office for a bespoke quotation.