Shared Ownership
We work closely with a number of housing associations and are experts in dealing with shared ownership purchases. These are also referred to as Part Buy Part Rent or New Build Homebuy transactions.
A shared ownership purchase involves the buyer purchasing a percentage share in a property (for example 25%) usually from a housing association who retain the remaining share in the property. The buyer then rents the remaining percentage from the housing association. This is a cost effective way for many people to get a foot on the property ladder. Later on it is possible to purchase further percentage shares and eventually own the whole property.
The initial percentage can be purchased with savings or there are a number of mortgage lenders who will advance the amount required. We work closely with Censeo who have a team of experienced mortgage advisors who can give specialist advice on obtaining a shared ownership mortgage.
Through our extensive knowledge of this type of transaction, we are aware of the potential problems and can advise you without having to look up the answers as many firms do. Our specialist knowledge can often prove to be invaluable. For example, Stamp Duty Land Tax (SDLT), formerly known as Stamp Duty, has to be considered in all property purchases but it is far more complex in this type of transaction, as it can apply to the initial purchase and then the later purchase of further shares. Rest assured that we will be able to advise you on your precise position in relation to any SDLT liability that your transaction may incur.
When buying a shared ownership property, the buyer is granted a lease by the housing association. This is a detailed document which sets out both the buyer’s and the housing association’s rights in the property. We will explain to you the terms of this complex document in a no nonsense plain English way, so that you fully understand the nature of the shared ownership arrangement.
Contact:
Sheri-Anne MizonDD 0208 498 6578 Email
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