SO….. How does Shared ownership work?

Shared ownership allows you to buy a share of a property  and pay rent on the remaining part. It is a government-backed incentive scheme, primarily aimed at helping buyers onto the property ladder and out of the private rental market. Making people home owners!

The percentage you can purchase may be different depending on where you buy the home:

• In England, you can buy shares of between 10% and 75% of the full market value
• In Scotland, you can buy a 25%, 50% or 75% share
• In Wales, you can buy shares of between 25 and 75% of what the home is worth

You will purchase your shared ownership property via a housing association or council. The home will be a new build or a re-sale of an existing shared ownership property, if a re-sale you’ll need to purchase the same percentage of shares as the existing owner, or more.

You will need a deposit and a mortgage on your share of the property that you are buying. The remaining share is owned by the housing association or council, and you will pay rent on the share you do not own.

The Housing Association will usually be the freehold owner, you will become the leasehold owner.

As the leaseholder, you will be responsible for repairs inside the property and the housing association will take care of the outside/communal areas.

To cover any costs that might be necessary for outside work, you will need to pay a service charge, usually paid monthly. It is a good idea to find out how much the service charge is and factor that into all monthly outgoings before you agree to buy.

It’s a step up into property ownership to those who otherwise would not be able to afford

If you are considering buying a shared ownership property then shared ownership is our specialist area in conveyancing and we would be delighted to help,  call 01302 431433 for a quote or email [email protected]

We also have a Facebook Information Group full of handy tips and info: Shared Ownership Conveyancing Information Group | Facebook