Solicitor Shared ownership

What does shared ownership involve?

• Partial ownership: Buying a share of the property’s market value (usually between 25% and 75%), while the remaining share is retained by a housing association or private developer.
• Eligibility criteria: Designed for first-time buyers or those with limited incomes, with eligibility determined by income thresholds and local authority guidelines.
• Staircasing options: The ability to purchase additional shares in the property over time until you achieve full ownership, subject to market conditions and your financial circumstances.
• Leasehold arrangements: Most shared ownership properties are held on a leasehold basis, meaning you own your share for a fixed period under specific lease terms.
• Financial considerations: Involves a combination of mortgage finance for the purchased share and regular rent payments on the portion you do not own.

How can a solicitor help with shared ownership, and what does it cost?

A conveyancing solicitor experienced in shared ownership can:

• Advise on scheme details: Explaining the terms of the shared ownership arrangement, including rent, mortgage options, and staircasing opportunities.
• Review and draft legal documents: Handling lease agreements, transfer deeds, and other necessary paperwork to ensure your rights and obligations are clearly defined.
• Conduct due diligence: Performing title searches and checks for restrictive covenants, planning permissions, or any other issues that might affect the property’s value or your future ownership.
• Coordinate with lenders and housing providers: Liaising with mortgage lenders, housing associations, and other parties to ensure a smooth transaction and timely completion.

Costs for shared ownership conveyancing typically include solicitor’s fees, disbursements (such as Land Registry and search fees), and any applicable VAT. Many firms offer fixed-fee packages for straightforward cases, often ranging from £750 to £1,500 plus VAT and disbursements. An initial consultation—which is frequently free or offered at a reduced rate—can help you assess your situation, estimate the overall expenses, and determine the best approach to secure your shared ownership property.