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Solicitors for Shared Ownership

There are many ways to own property, and one of them is shared ownership. This method appeals to people who can't own property using conventional methods, and as you would expect, it comes with added eligibility requirements.

What is Shared Ownership?

Shared ownership is a government scheme that allows you to buy a share of a property from a housing association or a non-profit that provides homes.

With shared ownership, you only own a part of the property, which means you can make the purchase with a smaller deposit and mortgage, making this a more effective way to invest in a home if you don't have the best finances. A smaller mortgage also means smaller repayment. However, you will also need to pay:

  • Monthly service charges
  • Rent on the share of the property you do not yet own
  • Ground rent

If you're considering shared ownership, it could be a newly built property, an existing property, a house, or flats. However, you should know that all Shared Ownership properties, even houses, are leasehold, which is unusual.

Who Qualifies for Shared Ownership?

Because this is a government scheme designed to help people who can't own homes conventionally be homeowners as well, it comes with various requirements you must meet to be eligible for the scheme. To qualify for shared ownership, you need to:

  • You can be a first-time home buyer, an existing shared ownership homeowner, or a former homeowner who cannot afford to buy now.
  • Be over 18 years old.
  • Have an annual household income of less than £80,000 or £90,000 in London.

What is the Shared Ownership Conveyancing Process?

Because of the requirements that come with shared ownership, it’s normal to think that the conveyancing process is different. And this is true to some extent:

  • Mortgage in Principle: The first step is getting a Mortgage Agreement in Principle, which highlights the maximum loan amount the lender is willing to offer based on your current financial situation.
  • Find your ideal Shared Ownership property: Once you have a budget, it's easy to know the types of shared ownership properties you should look at. You can browse listings online or through reputable shared ownership providers.
  • Reserve your chosen property: When you find the right property, you can reserve it by paying a reservation fee. Upon completion, this fee is deducted from the purchase price of your share.
  • Engage a Shared Ownership solicitor: After the approval, consider engaging a solicitor to handle the various legal checks on the property, such as the lease agreement. The checks will involve searches with the local authority and environmental agencies to identify potential issues with the property.
  • Contract Exchange: Once the legal checks are completed, a date is set for the exchange of contracts, and the solicitor will prepare the final contracts for your review and signature.
  • Completion: This is the last step of the process and acquisition of the property.