Residential Conveyancing

Shared Ownership

We have extensive experience over many years of dealing with a wide range of shared ownership properties and shared equity schemes and we are able to advise clients fully on the implications of purchasing properties subject to these types of arrangement.

In the current economic climate  with it becoming more and more difficult to get on the housing ladder and purchase your first home, shared ownership is becoming a more realistic option for many people. Clients can rest assured that we have the knowledge and experience to deal with this type of work. Shared ownership or shared equity schemes are generally run by housing associations and/or registered social landlords. There are already a variety of schemes in existence and more are likely to be developed in the future.

Almost all of the schemes have the same common features. In most cases, the buyer pays a reduced price and buys a percentage share of a property. The remaining percentage is retained by either the housing association or registered social landlord and the buyer then pays an annual rent on that share, equivalent to ground rent as would be paid if buying a leasehold property.

Most schemes have terms which allow the buyer to purchase further shares in the property leading up to the purchase of the whole.

All of these schemes have quite complicated terms and conditions and often, there are only a few mortgage lenders, who will lend money on these schemes. Each lender has their own specific requirements which must be complied with.

Buyers of shared ownership properties need to be aware that often, the cost of the conveyancing are increased because instead of just dealing with a simple ‘purchase’, there are often three parts to the transaction:-

  1. The purchase of the property and dealing with the buyers mortgage.
  2. The effective leasehold side in renting part of the property from a housing association or a registered social landlord.
  3. The “complicated terms and conditions’ as are often imposed by housing associations or  registered social landlords.

It is imperative that anyone buying properties under one of these schemes seeks advice from a solicitor or conveyancer who has experience in dealing with these types of schemes and is fully able to advise you as to the implications not only of ‘shared ownership’ but also the implications of buying further shares, or selling in the future.

For further advice on Shared Ownership, or to discuss your case, please contact Anne Lockwood through the online enquiry form or telephone 01564 777250

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We work with all sizes of business and individuals across the West Midlands advising on all aspects property law:

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Commercial conveyancing and residential conveyancing solicitors based in the West Midlands.