Getting On The Property Ladder Shared Ownership

Shared ownership schemes are another way you can get onto the property ladder in a very difficult market. The schemes allow you to purchase more of the property over time, giving you the financial advantage that you do not need to buy the entire property at once. You will be sharing the ownership of your flat or house with a housing association. Shared ownership schemes are easily applied for via your local HomeBuy agent or the HomeBuy agent in the region that you wish to move to. Simply fill out the form they give you and then you will be able to explore properties and options from there onwards.


With a shared ownership scheme you will initially purchase a percentage share in the property, this can range from 25% to 75% of the property’s full value. The property will always be leasehold, this means that you will own the property for a fixed length of time and in most cases, this term is set at 99 years. The housing association will own the remaining share of your home, and you will have to pay them to rent on this share, it will generally be 3% of the value of that share.


Buying More of Your Property


If you wish to buy an extra percentage of your property, this is possible, and if you wish to purchase your house outright, this is also possible. At any point at which you wish to buy another share in the property, the property will be valued at the current market value. This may mean that you have to pay more for the next share you buy than you did for the first share.


Selling Your Property


You must write to the housing association linked to your home if you wish to sell it on. It is possible to sell on your property at any time at all. If you own a share in your home the housing association may wish to find a buyer for it, they have this right. However, if you own 100% of your home, there is a different process. Firstly you must offer to sell the house back to the housing association, they have the ‘right of first refusal’ they will either purchase the property back, or the will decline at which point you are free to sell the property on yourself. The housing association has this right for 21 years after the date you buy your property outright.