How do you get a Shared Ownership home?

Well the good news is that it is quite a simple process! You will need to register with your local authority or the local zone agent for shared ownership in your area. In Berkshire and Buckinghamshire this is Catalyst Housing. Once they have approved your application your details will be passed onto housing associations when they have shared ownership properties available within your local authority area.

To qualify for some shared ownership properties you have to be a key worker. Please contact us to check if you are eligible for key worker properties.

Can I make alterations to my Shared Ownership property?

You can only make alterations once you have permission from us. 

Can I sell my property at any time?

Yes, upon confirmation from us, you can sell your Shared Ownership property when you wish to. We will help you do this by offering the property to people on the shared ownership waiting list in your local authority area.

Do I need a Mortgage?

Most people do require a mortgage to fund their purchase. Some people may have savings that they also want to put into their share of the property.

Do I need a mortgage?

Most people do require a mortgage to fund their purchase. Some people may have savings that they also want to put into their share of the property.

Do I need to declare all of my current income?

Yes, it’s important that we know all of your current earnings and savings.

Can I increase my share in the property?

Yes, you can do this at any point after one year of owning the property. It’s known as ‘staircasing’ and means that you can purchase further shares of the property from us, at a minimum of 25% at any time. 

How do I increase my share in the property?

To increase your share, you will need to contact us, we will confirm the costs involved in purchasing a further percentage and will send you information about how staircasing works. The cost of increasing your share will depend upon the estimated value of the property when you decide to purchase more of it.

How much will it cost to buy a greater share in my property?

This depends on how much your property is worth. Please contact us for further information on this.

How much will the rent be?

The rent is based on the part of the property owned buy us. If you buy a 25 per cent stake in a property we will own 75 per cent and you will pay rent on this. The larger the share of the property you own the lower the rent. We determine the rent. Rent on all shared ownership properties is designed to be affordable. 

Are there any service charges to pay?

Where properties have communal areas i.e. communal entrance halls in apartments and outside areas there will be service charges to pay. 

I earn a low salary but have substantial savings, can I still apply?

Yes you can. We are concerned about people’s ability to keep up payments on any loan secured on a property along with the rent, and the ongoing costs involved with living in a property. Whilst your savings may go towards the initial cost of your share in the property, we will look to make sure you can afford to carry on living there with your expected monthly income.

Is there a limit to how much of my Shared Ownership home I can own?

Usually there is no limit. In time, when your finances allow, it’s possible for you to own 100% of your property. (Note that there are certain local authorities that impose restrictions in some rural areas, and restrict ownership to 75% by the purchaser. This helps the authority retain shared ownership affordable homes for sale for the local community).

What does “staircasing” mean?

Staircasing is a specialist housing term used when people increase their share of a shared ownership property. For example, if you have purchased a shared ownership property and initially bought 25% of the property the remaining 75% owned by us. If you decide to purchase a further 25% of the property, then you will then own 50% of the property, and we will own 50%. This procedure is called staircasing.

What if I fall behind with my rent or service charges?

We will want to talk to you straight away as to why you are not keeping up with your monthly payments. It is possible that we can come to an arrangement where you are able to pay off outstanding amounts. If payments are still not forthcoming, we may recover any arrears from your mortgage provider for which you will then be charged legal costs. The amount recovered will be added to your mortgage. It’s important that you consider whether or not you can afford not only to buy a Shared Ownership property, but also to maintain it by paying the ongoing costs. Remember that your home is at risk if you do not keep up repayments on a mortgage or any other loan secured against it.

How do I sell my Shared Ownership property?

You simply inform us in writing. Prospective purchasers will be nominated from our waiting list. An independent valuer will determine the selling price, (the fee for which is payable by you), and then the sale can take place.

What will my rights and responsibilities be as a shared owner?

These will be set out in the lease agreement between you and Housing Solutions and they vary from property to property. The lease also sets out what you can expect from us. It is important that you ensure your solicitor explains the lease to you fully and gives you a copy of it. 

What sort of initial costs should I expect to budget for when purchasing a Shared Ownership home?

As a guideline, we envisage typical costs to be in the region of £3,000. This would cover:

• Mortgage arrangement fee: you will probably need a mortgage for the share of the property you are purchasing. The mortgage company might expect a 5% deposit - i.e. 5% of the amount you are expecting to borrow. The mortgage arrangement fee varies from company to company. In most cases there will also be a charge for a valuation of the property carried out by the mortgage provider’s surveyor and a mortgage indemnity guarantee. Please speak to your Independent Financial Advisor, bank or building society for further details.
• Stamp Duty: This is payable in line with government legislation and policy at the time of your purchase. Your solicitor can advise you on current legislation on the payment of Stamp Duty on Shared Ownership properties.
• Legal Fees: These are paid by you to your solicitor who is responsible for the legal aspect of the home purchase. They include the following costs but you should always get full details of costs you will incur in the purchase of a shared ownership property from your solicitor:
• Land Registry costs
• Local Searches: Your solicitor will arrange for searches to be performed on your property. This is to make sure that there are no planning applications or development plans which would affect your property.
• Bankruptcy Search: This search seeks to ensure that you are not a designated bankrupt.
• Engrossment of Lease: This fee is charged by our solicitor for the preparation of the Lease on the rented part of the Shared Ownership property.
• Disbursements: This is a sum for any other expenses incurred in the purchase of the property.