If you’re considering a shared ownership property, one of the most common questions is: Who is responsible for repairs and home improvements? Understanding your responsibilities can help you budget effectively and avoid any unexpected surprises.
What is shared ownership?
Shared ownership allows you to buy a percentage share of a property while paying rent on the remaining share, typically owned by a housing association or landlord. While this offers a more affordable route to homeownership, it also comes with specific responsibilities for repairs and improvements.
Who handles repairs and improvements?
Structural changes and home improvements
While you’re free to decorate and make minor cosmetic changes, any significant structural changes require approval from your landlord. This is because structural modifications can impact the property’s market value, which may affect the price if you decide to staircase (buy additional shares).
Keep in mind that a landlord is not responsible for upgrades like a new kitchen or bathroom if your motivation is purely aesthetic.
Initial repair period
Some shared ownership properties come with an initial repair period, typically lasting up to 10 years. This applies if you own less than 100% of the property.
During the initial repair period:
- The landlord covers essential repairs but cannot use the reserve fund or service charges to pay for them.
- You are still responsible for paying your service charges as usual.
- You may be able to claim up to £500 per year from your landlord for certain repairs, including issues with water, gas, electricity, or heating systems.
You can check whether your property has an initial repair period by referring to the Key Information Document provided by your landlord before you reserve the home.
External and structural repairs
For new-build homes, external and structural repairs are usually covered by a building warranty for the first 10-12 years. If you purchase a shared ownership resale property, any remaining warranty period will transfer to you.
For flats, external repairs are typically the responsibility of the freeholder or building owner. The cost is then divided among all flat owners through your service charge.
What to Do if Repairs Are Needed
If an issue arises, contact your landlord as soon as possible. They will assess the problem and determine whether the repair is essential. Keeping clear records of all communications and repair requests can be helpful.
For further information, visit the government website for official guidelines.
By understanding your responsibilities, you can enjoy the benefits of shared ownership without unexpected repair costs.
