Leeds Residential Conveyancing - Buying a shared ownership property
What is Shared Ownership?
With the increased difficulty for first-time buyers and younger generations to save for a deposit to enable them to get on the property ladder, the UK government introduced the Shared Ownership scheme.
The scheme allows people to buy a % share of a property (the minimum is 25% and the maximum is 75%) whilst they are paying rent for the remaining. So for instance, if you were to by 25% of the property outright, the remaining 75% would be paid as rent.
You are entitled to increase your % share at any point and the value will be decided by a valuation set up by the housing association and you will be required to pay any valuation fees.
Contact our licensed conveyancing solicitors by calling our Leeds law firm on 0113 200 7480 or Harrogate law firm on 01423 564551. We are ready to help you with the first registration of land.
Why choose Shared Ownership?
There are many reasons for buying a shared ownership property through this scheme, which includes:
It will enable you to get on the property ladder if you are struggling to purchase a property outright
The combination of your mortgage and rental payments may work out cheaper than buying outright
As you own a % of the property, you should see a return on your rent (in the long term)
You are not tied into buying a set % of the property, you only buy what you can comfortably afford
You can increase the % you own at any point.
If you are looking at buying a shared ownership property, Avery Walters shared ownership solicitors can help. Call us today for a free initial consultation with our conveyancing solicitor team.
How does Shared Ownership work?
To buy a home through a shared ownership scheme, you must contact the Help to Buy agent in the area where you want to live.
When it comes to selling, if you own a % share of a property, the housing association has the right of ‘first-refusal’ to purchase your %. The housing association also has the right to find a buyer for your home. However, if you own 100% of your home you can sell it yourself.
Who qualifies?
Your situation will decide whether you qualify to participate in the scheme or not.
If your household earns less than £80,000 (£90,000 in London) and any of the below apply to your circumstances:
You are a first-time buyer
You used to own a property but cannot afford to buy one now
You are an existing shared owner
People over the age of 55 are entitled to buy up to 75% of the property through the Older People’s Shared Ownership (OPSO) scheme. Once you own 75% you will not pay rent on the rest.
Disabled people are entitled to apply through the Home-ownership for people with a long-term disability (HOLD) if other Help to Buy scheme properties do not meet your needs, With this scheme, you are entitled to buy up to 25% of your home.
If you’re disabled you can also apply for the general shared ownership scheme and own up to 75% of your home.
Can you own 100% of a Shared Ownership property?
Simply put, yes. You are entitled to increase the % you own at any time. So if your finances changed so that you could purchase the property outright, then you are entitled to do this. The value of the property will (most likely) increase over time so a new valuation will be needed before any purchases can be made.
In addition, if you own 100% of the property, you are able to sell the property at any time.
Contact our Residential Property Solicitors
If you are looking at buying a shared ownership property, we can help, Avery Walters are shared ownership solicitors and our Leeds residential conveyancing services can help you when you are buying a shared ownership property. Call us today for a free initial consultation with our experienced team of shared ownership solicitors.
Our shared ownership solicitors can be contacted by calling our Leeds residential property solicitors team on 0113 200 7480 or Harrogate team on 01423 564551. We are ready to help you when completing on any shared ownership property.
* Laura Stafford is the SFE accredited memberand a full member of STEP