Shared Ownership Scheme, What Is It?
In short, it is a part home ownership scheme where you own a percentage of a property and a housing association or similar housing provider owns the rest. You take out a mortgage to purchase the portion you want and you pay rent on the portion you don’t own. The amount you own will be determined by you when you purchase the property based on what you can afford.
Typically, you can get properties where you own between 10% and 75% of your home. You can also buy a larger share of your property. This is known as staircasing. You can staircase by purchasing portions of 1% or more at a time. Always speak to the housing provider about the general shared ownership scheme requirements.
Where Can I Find Shared Ownership Schemes?
So you want to buy a home and you have identified one via the shared ownership scheme. A search of google will help you to find your ideal shared ownership houses to part buy part rent. We list new build shared ownership properties as well as shared ownership resales.
Do You End Up Paying Rent Too?
The shared ownership scheme is sometime known as part buy part rent. You typically part buy the property, from as little as 10% share, with a mortgage and deposit. You pay rent on the remaining share which is usually to the housing provider although this could now be a private company.
What Is The Minimum Share I Can Buy?
The minimum share is now 10% (previously it was 25%) for a shared ownership property. How much of a share you buy will depend on the deposit you have available and your mortgage affordability. The housing association or company offering the shared ownership property can give you more details based on the deposit you’ve got together and your income.
What Is The Eligiblity Criteria For Shared Ownership?
You are eligible for shared ownership if you have a household income that is less than £80,000 per year (in London it is less than £90,000). Typically a home ownership tenure aimed at a first time buyer, downsizer or those looking to get back on the housing ladder.
Are First Time Buyers Only Eligible For Shared Ownership?
Whilst the shared ownership scheme is aimed at first time buyers. It is also an option for those looking to downsize or get back on the property ladder.
Likewise if you are over the age of 55 there’s older people’s shared ownership. They are able to buy up to a maximum of 75% share.
Is The Shared Ownership Scheme Just Offered By Housing Associations?
Shared Ownership properties are available from a housing providers or registered social landlords and allow you to get on the property ladder. They are also aimed at downsizers or those who used to own a home, but are unable to buy one outright at the moment.
Do You Pay Stamp Duty Land Tax?
Depending on your personal situation, there are some options when it comes to paying stamp duty. You can either:
- Pay stamp duty as a one-off payment for the full market value of the property.
- Pay in stages, based on the share you own.
If you decide to pay in stages, you down owe anymore tax until you reach 80% of shares. Full advice and how much you can expect to pay can be found on the GOV.UK website.
Do I Need A Shared Ownership Property Solicitor?
Buying a shared ownership house purchase is one of the biggest decisions you will make. They can do the residential conveyancing tasks when buying or selling a house. For example, checking to see if your house is built over a sewer. It’s good to find specialist affordable housing conveyancing firms. That’s why comparing shared ownership solicitors fees is worthwhile to see what you are likely to need to pay.
Should I get Shared Ownership Solicitors Quotes?
It’s always good to get different quotes and comparisons when choosing shared ownership solicitors. There may be specialist solicitors you can use and also you can see how much they may cost. There may also be different fee options which may include fixed fee conveyancing. You will need to check what each solicitor can offer. It is also worth reading reviews to see what their client care and service levels are like too.
It is good to understand the whole process they offer. They should also be able to provide a breakdown of their services and what’s involved. You want to be sure there are no hidden costs or other third party costs. Obviously the costs are likely to be more if you are both selling and buying a property whereas if you are just buying it is likely to be cheaper.
Are there additional costs using shared ownership solicitors?
Most shared ownership property is leasehold. So they will be able to identify the term of the leasehold and any costs associated with it. Likewise what the service charge on a leasehold property is and what it covers too.
Do I Need A Shared Ownership Conveyancing Solicitor When Remortgaging?
When remortgaging a shared ownership property the mortgage provider will need residential conveyancing to be done to make sure all legal details that are required are in place. Get advice from the housing association or housing provider who you have the shared ownership home with.
I Am Staircasing, Do I Need A Solicitor?
Staircasing is when you are buying further shares of your shared ownership property. In some cases, depending on the housing provider, you will be able to buy the remaining share thus own your property 100% outright. When remortgaging as an existing shared owner you will need to make sure all legal information is correct before increasing your shared ownership share. It’s worthwhile getting expert advice from a residential conveyancing team of solicitors.
Can I Find And Compare Shared Ownership Solicitors Near Me?
Get your free residential conveyancing quotes now if you are a first time buyer, downsizing or getting back on the housing ladder. Get quotes if you are buying a shared ownership property, selling your current one, remortgaging or looking to staircase (buy a bigger share of your existing shared ownership home). It’s also useful to find out what you legal fees could be.
You can compare solicitors conveyancing fees for shared ownership properties across the UK including Bedfordshire, Cambridgeshire, Hertfordshire, Kent, Manchester, Milton Keynes and London. Even if you have been recommended solicitors to use by your housing association or estate agent it is worthwhile comparing quotes. You can also compare shared ownership mortgages.
How long is the process?
It will depend whether or not you are in a chain. The solicitors you get quotes from will be able to give you a better idea. However, it is likely to take at least several weeks.
In Summary: Getting Solicitor Quotes
It is always worth getting quotes. Solicitors can help you to understand the shared ownership agreements in relation to your purchase and the costs involved.
Some of the tasks they do include the searches so they can see if there are any environmental or legal issues to consider. Solicitors can also transfer the ownership of the property for you via the land registry. These are things that will be charged for as part of a property purchase or sale.
You can also check out the Law Society website to find solicitors too.
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