Solicitors for Shared Ownership

Conveyancing for shared ownership is the process of buying a percentage share in a property from a housing association. This can be done in one transaction or over several instalments. While shared ownership is a great way to get on the property ladder, it is subject to strict rules. Our shared ownership solicitors will carry out all the necessary checks to make sure there are no nasty surprises after the deal has gone through.

What is shared ownership?

The principle of shared ownership is “part rent, part buy.” This means that instead of buying a property outright, you buy a share of the property (usually between 25% and 75%) and pay rent to the Housing Association for the rest. This allows you to buy a home with a smaller deposit and make more affordable monthly payments.

How can buying a shared ownership house benefit a first-time buyer or home mover?

Shared ownership schemes are a popular way for first-time buyers to get a foot on the property ladder without having to borrow from family members. If you used to own a home but can no longer afford one, shared ownership can help you become an owner-occupier again. Shared ownership homes also have to meet strict Government guidelines. You’ll often find that they are more spacious and have better green credentials than comparable homes on the open market.

Usually, you will have the chance to buy more of the property over time as and when you can afford it. This is known as staircasing. You can usually increase your owned share of the property until you own it outright.

Am I eligible for Shared Ownership?

To be eligible for shared ownership, you must:

• Be at least 18 years old
• Not own a home or, if you do, you will have sold it before you buy the shared ownership property
• Not be able to afford to buy a home outright on the open market in the area you want to live
• Have a good credit history with no mortgage or rent arrears

Additionally, your yearly household income must be less than £90,000 in London or £80,000 elsewhere.

There are separate schemes for people aged over 55 and those with a long-term disability. We can provide expert advice on whether these schemes are right for you.

How does shared ownership work when you sell?

You have two options:

• Sell the share you own, or
• Buy the Housing Association’s share and then sell the property as whole.

There are pros and cons to each approach. For example, some homes have a mandatory buyback on them. This means that if you do not own 100% of the home, you must tell the Housing Association that you wish to sell and the Housing Association will either buy your share or arrange for someone else to buy it. An experienced solicitor can explain the process and help guide you through it.

How long does shared ownership conveyancing take?

The timeframe for shared ownership conveyancing is often longer than other types of property transaction, but it is worth the wait. You want to make sure that everything is done properly so that the process goes as smoothly as possible. It’s important to have a solicitor on board who you can trust.

If you would like to speak to one of our shared ownership solicitors, please call us today. Our solicitors have extensive experience in dealing with shared ownership conveyancing. We can guide you through the whole process, whether you are buying, selling or staircasing towards a larger share.

Read our blog post Shared Ownership Stamp Duty.