First time buyers have a hard time getting the grips in the market. With the onset of the pandemic, it has become even harder to find affordable housing. The Shared Ownership Scheme Enables first time buyers to find their footing in the market through a partial rent or buy arrangement.
Royce Legals’ Conveyancing Solicitors can guide you on proceedings on buying or selling a shared ownership property. We ensure to make the process as straightforward and cost-effective as possible for transparent deals. Royce Legal is highly experienced in dealing with shared ownership properties, and, therefore, have the insight to foresee potential issues and risks involved in buying a joint ownership property.
Speak to one of our Specialists at 01706 655 592 for more guidance on Joint Ownership
What is Joint Ownership?
Joint Ownership means buying a share of your property between 25% and 75% of the property’s total value and paying rent on the rest of the share. It is meant for people who are unable to buy their own homes, to have access to accommodation.
Housing associations and registered social landlords run shared ownership and equity schemes. It requires that you take out a mortgage to fund your share of the property’s purchase price. It is a pragmatic option for people that are struggling to find abodes for themselves due to the high prices and mortgage lending limits.
There are various schemes, but all have one common ground – the buyer pays a reduced percentage share of the property. The schemes also allow buyers to increase their payment of percentage shares with changes in circumstances to eventually buy the property in its entirety. Nonetheless, these schemes are complicated with heavy conveyancing jargon that require a solicitor’s assistance. Furthermore, few mortgage lenders are willing to lend money as a part of joint ownership. Each lender will have its own specific requirements for these schemes, but a solicitor will make navigation easier. Royce legal has an abundance of experience dealing with these schemes and can provide expert joint ownership legal advice to simplify the process for you.
Who Can Benefit From Shared Ownership?
Joint ownership is a logical option, but it might not be the best solution for everyone. Your suitability for a shared ownership scheme will depend on your financial and specific circumstances. Benefits include a smaller mortgage. Please take into account that you will be paying rent on the remaining share percentage (not owned by you) alongside the annual ground rent. It will restrict you from making any changes to the property.
Eligibility for Joint Ownership
The following is the eligibility criteria for shared ownership and equity schemes:
- A household earning £60,000 a year or less
- Household earnings with £71,000 a year or less for a 1 or 2 bedroom house in London.
- Household earnings with £85,000 a year or less for a three or more bedroom house in London.
- First-time buyers
- You were a homeowner but can no longer afford to buy one.
- You are currently renting a council property or a housing association property.
If you are 55 years of age or older, you can get help from an ownership scheme called “Older People’s Shared Ownership”. Through it, you are entitled to buy up to 75% of your home. With 75% in your possession, you will not have to pay rent on the remaining share.
Likewise, “Home Ownership for People with Long-Term Disabilities” (HOLD) allows people with long term disabilities to buy homes on a shared ownership basis.
You can only apply for HOLD if the properties available through schemes do not suffice. For instance, your requirement is for a ground floor property due to your disability.
How do I apply for shared ownership?
Contact your local “help and Buy agent” for any schemes running in the surrounding area or areas where you are interested in buying a shared ownership property.
What Happens To Shared Ownership When I Sell?
Selling your shared ownership property may require additional steps in comparison to a standard property sale. You will need the following:
- Payment for valuation of the property.
- An EPC certificate.
- An agreement for the contract of sale with your housing provider.
It is best to approach your housing provider, as they may have a buyer in mind, but if they are unable to find a buyer through their schemes, you are allowed to advertise your home privately or via an estate agent. If you find a buyer on your own, they will need to meet the criteria for purchase set by your housing provider for a shared ownership scheme. A solicitor’s aid is necessary to help you through the selling process and ensure that exchange and completion go smoothly.
How long will shared ownership conveyancing take?
The duration of the process varies depending on whether the home is old or newly built. For newly built homes, conveyancing is done within a few weeks.
However, some shared ownership properties might have complex circumstances. It means that conveyancing takes longer and is expensive, more work is required by your solicitor for the sale to go through.
Solicitors fee for shared ownership property purchases
There is no set cost, it varies according to the complexity of the case. Your solicitor can provide you with a rough estimate when requested. We at Royce Legal make an effort to offer great value for money for our conveyancing services for every client.
If you would like further information on shared ownership, please contact our specialist conveyancing team on (insert number) for a free, no-obligation initial discussion.
Why choose Royce Legal Solicitors for shared ownership solicitors?
Royce Legal Solicitors have been helping with shared ownership property schemes for many years, giving us exceptional expertise in this field. We have a strong understanding of the property market, and it allows us to make the entire process simple and smooth for our clients. Please do not hesitate to call us if you require any assistance buying or selling your shared ownership property.