Usually once you have lived in your home for a certain period of time as the shared owner (depending on the terms of your lease), you can buy further shares in your property. This process is known as staircasing, enabling you to own a greater proportion of your home.
What are the downsides to shared ownership? Hopefully the monthly mortgage repayments, plus rent will still make shared ownership far cheaper than buying a property outright. … Be aware that even though you own a share of the property, say 30%, you are responsible for paying the full maintenance and repair costs.
Shared Ownership is an affordable housing product designed to help first time buyers who can’t afford a property on the open market, get a foot onto the property ladder. With this in mind, subletting is not allowed under the terms of a Shared Ownership lease, unless there are exceptional circumstances.
How can I buy 100% of Shared Ownership property? You can gain full ownership of your Shared Ownership property through a process called ‘staircasing‘. Once you’ve bought your initial stake in your home you can staircase to 100% Ownership in batches of 10% or larger.
However, the experts have stated that shared ownership is still a good decision in 2021. Ms Mitchell added: “Shared ownership is a great way for first time buyers to get onto the property ladder and a way of taking the steps to own your first home without the need for a hefty deposit upfront.
And according to Ms Nettleton, selling a shared ownership property isn’t as hard as people have been led to believe. … “Normally, there is a nomination period where the home is offered to other shared ownership buyers first, but, if one can’t be found it can then be sold on the open market.”
LTF has always deemed shared ownership to be a con – an ‘affordable’ tenure that is affordable only to a better off minority. London Living Rent is little better. Ambitious targets for new social rented housing are what is needed under the draft new London Plan, and are sadly lacking.
The lease makes the shared owner the homeowner and they are responsible for all the repairs and maintenance in their home, including major structural works and major repairs. This is the case with all leasehold properties, where the sharing of cost is stipulated in the lease.
Also referred to as part buy/part rent, Shared Ownership allows buyers to purchase a share of a home – usually between 25% and 75%. Purchasers will pay a mortgage on the share that they own, and a below-market-value rent on the remainder to a housing association, along with any service charge and ground rent.