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The Shared Ownership scheme is a government-backed incentive aimed primarily at helping first-time buyers getting on the property ladder. There are some eligibility requirements and available properties will vary based on location, but purchasing a home via Shared Ownership can be a feasible way of becoming a homeowner. But who owns the property in a Shared Ownership agreement?
When purchasing shares of a home via the Shared Ownership scheme, a legal contract known as a lease is established between the buyer and the housing association. The shared owners are therefore the leaseholders, which also makes them the homeowner/s.
Keep reading to find out more about who owns a Shared Ownership property.
When purchasing a home through Shared Ownership, you are initially purchasing a share (typically between 10-75%) in the property. This agreement with the housing association establishes a lease, which is a legal document that names you as the homeowner/s. Usually established as a long leasehold title, the lease documents also detail the payments that will be due to the landlord in the form of monthly rent. So, while you will be named as owners of the property, the housing association still owns the percentage of the house you have not bought outright.
When living in a Shared Ownership property, there are a number of monthly costs that you will be obliged to pay. These costs include:
However, the intention behind Shared Ownership is that you pay reduced rent while you save money to purchase more shares in your home. The terms of purchasing extra shares in your property will be set out in your lease agreement, but in most cases you can reach 100% ownership of your home by purchasing extra shares. This process is known as ‘staircasing’, and will result in you paying no monthly rent.
At Plumlife Homes, we are proud to share the journeys of many people who have successfully ‘staircased’ to 100% ownership of their homes. Below are a couple of success stories for those wondering if Shared Ownership really works:
Published in 2021, the new model for Shared Ownership states that the term of the leasehold has moved from 99 years to 990 years. This means that leaseholders are able to save money on the extra cost of extending a lease. During this time, the home can be bought or sold, and the term of the lease will be fixed at the beginning of the agreement. Each year, the length of the lease will decrease by one year.
Calculate what Shared Ownership property you can afford by using our affordability checker.
Since you are the named homeowner/s of the property, you are entitled to sell your share of the home at any time. However, how you sell your shares will depend on what percentage of the property you own. For example, if you own 100% of the property, you can sell your home on the open market. If you own anything less than 100% of the property, the process can be a bit more complicated.
Find out more about how to sell your Shared Ownership property by reading our detailed blog.
At Plumlife Homes, we are proud to offer a wide range of stunning new-build properties, available for Shared Ownership buyers in locations all over the UK.
Contact our friendly team today to find out more, or click the link below to browse available properties. You may also wish to check your eligibility using our quick and easy online checker.
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