Property Conveyancing
Shared Ownership
Our team will guide you step by step through the shared property ownership process, helping you make informed decisions.
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Shared ownership made clearer with expert guidance
Shared ownership property: key considerations
Shared ownership can be a great way to get onto the property ladder if you’re not able to buy a home outright. You’ll buy a share of the property and rent the rest from a housing association. While shared ownership comes with some additional considerations compared to a traditional mortgage, having the right support makes the process much easier.
What is shared ownership?
Shared ownership is a scheme that allows you to buy a share of a property, usually between 10% and 75%, while paying rent on the remaining share to a housing association or other registered provider.
You will normally need to take out a mortgage to fund the share you are buying, although some buyers may be able to purchase their share without a mortgage. You will also usually need to pay service charges and other costs associated with the property.
Over time, you may be able to buy additional shares in your property through a process known as staircasing, potentially allowing you to own 100% of the property.
"Very informative all the time, clear instructions and a very fast result. A pleasure to work with. Highly recommend."
Expert legal support through the shared ownership process
Our experienced property lawyers can guide you through the process, explain the terms of your shared ownership lease and make sure you understand the costs and obligations involved before you commit to buying.
How the process works for shared ownership
Once you have found a shared ownership property and had your application accepted, your conveyancer will work with you, your mortgage lender and the housing association or registered provider to progress the purchase.
- Your eligibility and reservation – You will need to meet the relevant eligibility requirements for the shared ownership scheme. Once you have chosen a property, you may need to pay a reservation fee. We can review the terms and explain what happens if the purchase does not proceed.
- Reviewing the lease – The shared ownership lease sets out your rights and responsibilities as a homeowner. We will review the lease carefully, including the arrangements for rent, service charges, repairs, alterations, subletting and selling your share.
- Mortgage and financial arrangements – If you are taking out a mortgage, we will work with your lender to ensure that the legal requirements are met and that your mortgage offer is suitable for the purchase.
- Searches and property checks – As with other property purchases, searches and enquiries will be carried out to identify potential issues affecting the property. We will also review the information provided by the housing association and raise any relevant enquiries.
- Exchange and completion
Once all legal and financial matters are in place, contracts can be exchanged. Completion takes place once the purchase money has been transferred and you become the owner of your share in the property.
Shared ownership can be a great path to homeownership, but it’s important to think about:
- How sharing ownership with a housing association (or another party) might impact your personal situation.
- Your financial commitments: If you’re taking out a mortgage for the part you own, you’ll also need to cover rent for the part you don’t.
- What to do if your payments become difficult to manage.
- The process of selling your home in a shared ownership arrangement.
Quality conveyancing services at all times
Buying a shared ownership property can involve more documentation and additional legal considerations than a standard property purchase. Our experienced conveyancing lawyers will take you through the process, explain the legal terms in straightforward language and keep you informed at every stage.
Our lawyers are members of the Law Society Conveyancing Quality Scheme (CQS), providing reassurance that your property transaction is being handled by an accredited conveyancing team.
Key considerations:
Rent on the remaining share
You will normally pay rent to the housing association or registered provider on the part of the property you do not own. The lease will set out how the rent is calculated and when it can be increased.
Service charges and other costs
You may need to pay service charges towards the maintenance and management of communal areas and facilities. There may also be other costs, such as buildings insurance, estate charges or management fees.
We will help you understand these costs and check the relevant provisions in the lease.
Staircasing
If your circumstances change, you may be able to purchase additional shares in your property. This is known as staircasing.
The lease will set out the rules for staircasing, including the minimum additional share you can buy and how the price of additional shares is calculated. There may also be legal, valuation and administrative costs involved.
Selling your shared ownership property
There can be additional requirements when selling a shared ownership property. Depending on the terms of your lease, the housing association may have a period in which it can nominate a buyer or help find someone to purchase your share.
It is important to understand these restrictions before you buy, particularly if you think you may need to sell the property in the future.
Repairs and maintenance
Your responsibilities for repairs and maintenance will depend on the type of shared ownership property and the terms of your lease. Some shared ownership arrangements require the leaseholder to meet repair costs, while others may provide different arrangements.
We will explain your obligations so that you understand what you may be responsible for once you become a homeowner.
Legal and financial advice under one roof
Tees is a top-tier Legal 500 firm offering joined-up legal and financial services. We have our own independent financial advisers (IFAs), who work closely with our lawyers.
Our advisers provide holistic financial planning, and as we are not connected to any one provider, we can offer a whole-of-market approach for the range of products we can advise on. We can also give independent advice for a whole range of insurance products to protect you and your family. Our IFAs are regulated and authorised by the Financial Conduct Authority, which means we’re accountable for the advice we give.
Get in touch today, we’re here to help
Our clients range from high-net-worth individuals with complex finances to those with more straightforward needs. We also specialise in the agricultural sector, having a sound understanding of the relationship between business and personal needs.
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Shared ownership FAQs
What is shared ownership?
Shared ownership allows you to buy a percentage of a property, while paying rent on the remaining share to a housing association or other registered provider. You may be able to buy additional shares in the property in the future through a process known as staircasing.
Is shared ownership a leasehold property?
Shared ownership properties are usually leasehold. The lease sets out important details about your rights and responsibilities, including rent, service charges, repairs, alterations, subletting and selling the property. Your conveyancer will review the lease and explain the key terms to you.
Do I need a solicitor for shared ownership?
Yes. A shared ownership purchase involves legal documentation, including a lease and requirements set by the housing association or registered provider. Your conveyancer will check the legal documents, carry out the necessary searches and liaise with your mortgage lender and the housing association.
How much does shared ownership conveyancing cost?
The cost of shared ownership conveyancing varies depending on the property and the complexity of the transaction. There may also be additional costs associated with the housing association, searches, mortgage work and other legal requirements. Our conveyancers will provide a clear breakdown of the costs before you proceed.
What is staircasing in shared ownership?
Staircasing is the process of buying additional shares in your shared ownership property. Depending on the terms of your lease, you may eventually be able to own 100% of the property. Your lease will set out the rules and costs involved.
Can I sell a shared ownership property?
Yes, but there may be restrictions on selling your shared ownership property. The housing association or registered provider may have a period in which it can nominate a buyer or help find someone to purchase your share. Your conveyancer can explain the relevant provisions in your lease.
Can I rent out my shared ownership property?
Subletting a shared ownership property is usually subject to restrictions and may require the consent of the housing association or registered provider. The terms of your lease will determine whether subletting is permitted.
What costs are involved in shared ownership?
In addition to your mortgage payments, you will usually pay rent on the share of the property you do not own. You may also need to pay service charges and other costs associated with the property. Your conveyancer will explain the relevant costs and obligations before you complete.
Can I buy more of my shared ownership property later?
In many cases, yes. You can usually purchase additional shares through staircasing, subject to the terms of your lease and the rules of your shared ownership scheme. There may be valuation, legal and administrative costs involved.
Why choose Tees for shared ownership conveyancing?
Our experienced property lawyers understand the additional legal considerations involved in shared ownership purchases. We can review your lease, explain your responsibilities, liaise with your lender and housing association, and guide you through the transaction from offer to completion.
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