Buying a Shared Ownership Property
Shared Ownership homes offer a low cost way to enable people with limited resources, to get on the housing ladder by offering affordable homes.
What is Shared Ownership Housing?
The basic concept is to help people buy a home of their own through a part-buy, part-rent system. This means that you would get a mortgage for the share of the property you were buying, e.g 40% and then pay the Housing Association a subsidised rent on the remaining share e.g. 60%. These shares can vary upwards or downwards.
Your monthly payments would be cheaper than paying for a full mortgage, as the rental element is usually lower than the mortgage repayments.
Who qualifies for this scheme?
Most applicants are first time buyers or anyone who is unable to raise a full mortgage to buy on the open market.
The government have prioritised four groups for assistance under the Homebuy Scheme:
- Social Tenants and Housing Association Tenants
- Those with priority on the Local Authority housing waiting list
- Public sector key workers
- Other priority groups recommended by the Regional Housing Board
What kind of properties are available?
There are various properties which can include brand new apartments or houses, refurbished or converted homes. There are also numerous ‘resale’ properties available, homes that existing new build Homebuy owners are selling.
What are my rights and responsibilities?
These will be contained in the Lease agreement between you and the Housing Association and should be fully explained to you by your Solicitor. They should also provide you with a copy.
What are the Housing Association’s responsibilities?
Their main responsibilities are to manage the development and to repair and maintain the structure and common parts i.e. landings, stairways, footpaths, access ways and roadways (if the property is a flat).
If the property is a house, they will not be responsible for maintaining the structure of the property – this will be down to you. They will be responsible for the buildings insurance and maintaining any common areas i.e. access to parking and roadways. They will maintain any communal areas, insure the building and collect the rent and service charges due.
A more comprehensive list of their obligations will be contained in the Lease.
This information is for guidance and should not be regarded as a substitute for taking full legal advice.
If you would like to know more about Shared Ownership or get an instant estimate for our legal fees call today on 01420 82881.