Shared Ownership Solicitors

Become a homeowner with shared ownership

Purchasing a shared ownership home can be an affordable way to begin your journey onto the property ladder.

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Shared ownership FAQs

Before you can buy a shared ownership property, you will need to be approved by the Housing Association. You can buy a home through Shared Ownership if:

Your household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London.

You are a first-time buyer, or were previously a homeowner but can no longer afford to buy, or you are an existing shared owner looking to move on

If you are aged 55 or older, you may be eligible for Older People’s Shared Ownership. These leases are capped at 75% shared ownership – it means you can’t own more than 75% of the property. You could own less than that percentage, but if you choose to own 75%, you will not pay rent on the remaining 25%.

When you are buying a shared ownership property, you are buying a share of a house or a flat. The remaining share will be kept by the Housing Association.

You will be granted/assigned a lease of the property, and this will be subject to rent and restrictions. So, even though you own part of the property, you will only be able to use the property in certain ways, and share it with certain people.

If you are thinking about buying a shared ownership property, you will need to contact a Help to Buy agent in the area you want to live.

The government offers a few different ways of making property ownership more affordable. There are equity loans, shared ownership schemes and mortgage guarantees. Look into these and make sure that you are picking the best available product to suit you.

If you are buying a shared ownership property, and you are the first owner under the lease, you will need to decide how to deal with Stamp Duty. You could either pay the tax on your initial share and rent, or on the full market value of the property plus ground rent. This is a tactical decision.

If you choose to pay Stamp Duty on your initial share, you won’t need to pay Stamp Duty if the value of the share you are buying falls below the tax threshold. Rent is taken into consideration and if you were to increase your shares to 80% or more, for example, then Stamp Duty will become payable.

If you elect to pay Stamp Duty on the market value of the property at the time of purchase, you will not have to pay stamp duty again, even if you increase your shareholding to 80% or more. This option is only available if you are the original leaseholder.

As time goes by, you may be able to buy further shares of the property. In most cases you can buy up to a 100% share in the property – this is known as staircasing. You will need to check whether or not your lease allows this; not all leases do.

How much would the shares cost? This calculation is based on a valuation of the property and the market value of the whole of the building. If you are interested in staircasing, you should contact the Housing Association and see what opportunities exist. However, remember the point we made about Stamp Duty becoming payable in certain circumstances where more shares are bought.

Until you own 100% of the property, you will not be able to make any structural or non-structural changes, or any repairs to the property without the consent of the Housing Association.

A word of caution: if you go ahead and make approved changes, you won’t be entitled to any more of a share or value than that set out in your lease. So, while you may enjoy living in an improved home, it is the Housing Association that stands to benefit financially from your efforts.

When you own part of a shared property and rent the other part, you are wearing two hats. On the one hand you are a home-owner, responsible for paying a mortgage. On the other, you are a tenant who must pay rent. Your lease will set out how that rent will be calculated, so make sure that you can afford to make all payments that become due, and that you set up reliable methods of paying every month.

When you go through the process of buying or selling shared ownership, the Housing Association – as well as you – will incur some costs and expenses. These include valuation fees and legal fees, all of which will be passed onto you. You could face quite a significant bill, so get a handle on what you might have to pay, and budget for it.

If you own a share in your property, you are not free to sell the property as you ordinarily might. The Housing Association has the right to nominate the buyer.

You should therefore always contact the Housing Association first if you are considering selling your property to ensure you follow the correct procedure.

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Excellent

Based on 421 reviews
27 Aug 2024

Experienced Residential Conveyancing Solicitors

I had the pleasure of working with Eric Robinson Solicitors for the purchase of my home, and I am extremely satisfied with the service provided. Mr Sajith Pillai was highly professional, efficient, and kept me informed every step of the way. They made the typically stressful and complex process of buying a home feel seamless and easy. I would strongly recommend Eric Robinson Solicitors to anyone seeking a residential conveyancing solicitor. Thank you.


Nick
23 Aug 2024

Great service!

Great service from Sajith. Very good communication and constantly updated us. Thank you for everything- really appreciate it. Helped us achieve our dream home.


Nisha Thomas
22 Aug 2024

Excellent service

Eric Robinson Solicitors service was excellent.Our designated solicitor Sajith was excellent in all his dealings with us. He was very efficient and very fast with his replies, ensuring that all our doubts and questions were answered. We would highly recommend him to any of our friends and family. Thank you Eric Robinson Solicitors


Annis Panikulam
21 Aug 2024

Made the sale and purchase of our…

Made the sale and purchase of our property stress free. Provided easy non jargon communication. A special mention to Hannah Jones and Carly Dawson who worked extremely hard.


Darren
21 Aug 2024

House sale

Selling my property was made that much easier, with Eric robinson solicitors, communication through the whole process was perfect, also big thank you to Carly.


allan hall
08 Aug 2024

Excellent Service

Following the death of my father, I needed a solicitor to handle probate for the estate and to sell his house. Eric Robinson were recommended to me, and I wasn’t disappointed. Everyone I death with was friendly, helpful and professional, and I am delighted with the service I received. My thanks to Kristen, Sarah, Bernadette and Megan for everything they did.


customer
27 Aug 2024

Experienced Residential Conveyancing Solicitors

I had the pleasure of working with Eric Robinson Solicitors for the purchase of my home, and I am extremely satisfied with the service provided. Mr Sajith Pillai was highly professional, efficient, and kept me informed every step of the way. They made the typically stressful and complex process of buying a home feel seamless and easy. I would strongly recommend Eric Robinson Solicitors to anyone seeking a residential conveyancing solicitor. Thank you.


Nick
23 Aug 2024

Great service!

Great service from Sajith. Very good communication and constantly updated us. Thank you for everything- really appreciate it. Helped us achieve our dream home.


Nisha Thomas
22 Aug 2024

Excellent service

Eric Robinson Solicitors service was excellent.Our designated solicitor Sajith was excellent in all his dealings with us. He was very efficient and very fast with his replies, ensuring that all our doubts and questions were answered. We would highly recommend him to any of our friends and family. Thank you Eric Robinson Solicitors


Annis Panikulam
21 Aug 2024

Made the sale and purchase of our…

Made the sale and purchase of our property stress free. Provided easy non jargon communication. A special mention to Hannah Jones and Carly Dawson who worked extremely hard.


Darren
21 Aug 2024

House sale

Selling my property was made that much easier, with Eric robinson solicitors, communication through the whole process was perfect, also big thank you to Carly.


allan hall
08 Aug 2024

Excellent Service

Following the death of my father, I needed a solicitor to handle probate for the estate and to sell his house. Eric Robinson were recommended to me, and I wasn’t disappointed. Everyone I death with was friendly, helpful and professional, and I am delighted with the service I received. My thanks to Kristen, Sarah, Bernadette and Megan for everything they did.


customer
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