Shared Ownership

What is Shared Ownership?

Shared ownership is an incentive scheme that allows you to buy a share of a new house.  This is usually between 25 and 75 percent of the property’s total value.  The remaining percentage is often owned by a housing association, and you will pay rent on this remaining part to them.

Shared ownership schemes are a tool which can help you to get on the property ladder, or to buy a bigger property that you might ordinarily not be able to afford on the open market.

Shared Ownership Eligibility

In order to be eligible to access a shared ownership scheme property your household income must be below £80,000 per year, or £90,000 if you live in London.  It must also be either your first property purchase, or a property purchase when you have owned a home previously but can no longer afford to buy a property outright.

You will also need to ensure you have no outstanding credit issues.

Can I Increase My Ownership Percentage?

Through a process called Staircasing you will, over time, be able to increase your share of the property.  You may be able to use this process until you own the property outright.  It is usually the case that you can increase your share of the property in 10% increments.

How do I purchase a Shared Ownership property?

Shared Ownership properties are often purchased through a housing association.  Your home will either be a new build house, or a re-sale of an existing shared ownership.  If you purchase a re-sale property you will be required to purchase the same percentage of share as the existing owner, but may also have the option to purchase a larger percentage.

In order to purchase a Shared Ownership property you will need a deposit, and should it be necessary, a mortgage to pay for your share of the house.  The remaining share is owned by a housing association, and you will pay rent to them.  This rent can be up to 3% of the amount owned by the housing association. 

Shared Ownership Leasehold

Despite a housing association having shares of up to 75% in your home, you will be the owner of the lease.  As the leaseholder you will be responsible for the inside of the property, and liable for any necessary repairs.  The housing association will be responsible for the outside. 

To cover costs of any work necessary outside of the property you will be required to pay a service charge, this comes in the form of a monthly payment.  It is a good idea to find out how much the service charge might be and factor that into your monthly outgoings, before agreeing to purchase a shared ownership home.

How to find out more

You can find out more about shared ownership properties in your area by contacting a local Help to Buy agent, or by directly enquiring with a Housing Association.  You can also check newhomesforsale.co.uk.  The Government also has more details on Shared Ownership properties on their website – https://www.gov.uk/shared-ownership-scheme

Shared Ownership Solicitors Rotherham

If you are purchasing a shared ownership property our solicitors in Rotherham can represent you.  To find out more about the process, and be given a free quote you can either call us, or complete the form on our website. 

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Arthur Jackson & Co Solicitors will only use your information for the purposes of your enquiry.