Shared Ownership Guide

What is Shared Ownership?Shared ownership schemes are offered by Housing Associations, this allows you to part-buy and part-rent your home. You can buy a share of between 25% and 75% of the property and pay rent on the remaining share you don’t own to the Housing Association.

peritus-group.co.uk Guide to buying a Shared Ownership Property

How do I finance my Shared Ownership Home?

Not all mortgage lenders offer Shared Ownership loans, however, Peritus Private Finance have access to lenders that can help find the right mortgage for you.

Who is eligible for Shared Ownership?

• You will need a household income of £80,000 a year or less for outside London or £90,000 inside London.

• You must be a British/EU Citizen or have indefinite leave to remain.

• You must not currently own a home.

Can I buy a larger share at a later date?

Yes! This process is called “staircasing”. The cost of increasing your share depends on the market value of your property at the time.

To staircase you will need to pay for the Housing Association to carry out a valuation of the property and ensure you have the cash or mortgage finance in place to pay for the extra share.

Each Housing Association have different rules, but the general rule of thumb is you will have to buy a minimum 10% share when staircasing.

How do I sell my Shared Ownership Property?

You can sell your property at anytime. However, the Housing Association has the right to find a buyer before you put on the open market.

Please be aware the amount of cash you and the Housing Association receive depends on the market value of the property at the time.

What are the advantages buying a Shared Ownership Property?

• It’s a quicker way to get onto the property ladder.

• You own part of your home rather than pay rent with no return

• You can sell your shared ownership property at anytime and benefit from any increase in value since you bought it.

• The combined monthly mortgage and rent payments usually work out cheaper than buying outright or even renting privately.

What are the disadvantages buying a Shared Ownership Property?

• You have to buy where the shared ownership properties are, which may not be your preferred location.

• It may be difficult to staircase if the value of the property increases. Therefore, more expensive to buy.

• Shared Ownership properties are classed as leasehold properties and a service charge applies.

Shared Ownership

peritus-group.co.uk Guide to buying a Shared Ownership Property

Reservation Fee – Usually around £500, however, this depends on the Housing Association.

Mortgage Arrangement Fee – We will research the market and find the best deal for you. We may charge a fee of £495 to use our service.

Mortgage Valuation Fee – All lenders will insist on a valuation, this cost ranges between £150 to £1,500. This cost depends on the value of the property.

Mortgage Product Fees – These usually start around £295 and up to £1,500.

Deposit – Typically, you will need at least a 5% deposit of the share you would like to buy.

Conveyancing fees – On average around £750. However, the amount can vary depending on the value of the property.

Stamp Duty Land Tax (SDLT) – Seek the advice of your solicitor on the exact amount payable as there are different options when buying a property through a shared ownership scheme.

What costs are involved?

peritus-group.co.uk Guide to buying a Shared Ownership Property

Shared Ownership Process

CONTACT HOUSING

ASSOCIATIONWhen you have found

your ideal home contact the Housing Association for the property listing.

CHECK HOW MUCH YOU CAN

BORROW Don’t forget other fees such as solicitor fees, survey fees, mortgage costs and stamp

duty.

VIEW YOUR PROPERTY

If the Housing Association think Shared Ownership is for you. They will invite you to view the property.

REGISTER WITH HELP TO BUY

Before you can buy through Shared Ownership, you will

need to register with one of the governments registered Help to Buy Agents. The Housing

Association will advise on which Help to Buy Agent you need to

register with.

COMPLETE YOUR MORTGAGE

APPLICATIONOnce you have secured your property, Peritus will help you

complete your application, gather documentation and

submit to the lender.

APPOINT THE CONVEYANCER If you don’t have free legals

from your lender you will need to appoint your own conveyancer. Peritus can

help you with this.

SURVEYS It is a legal requirement to have a standard valuation carried out. However, you

may want a more thorough survey.

EXCHANGE CONTRACTS

Your solicitor or conveyancer will have carried out all the land

searches. You will be asked to sign a contract that binds you to buying the property.

You will also need to pay your agreed deposit. At the point of exchange you will agree a date

to complete the sale.

COMPLETIONThe property is legally yours when all forms

have been signed, stamp duty paid and money

transferred to the seller’s solicitor. The keys are

handed to the purchaser.

PAY YOUR RESERVATION

FEE If you want to go ahead with

the purchase, you will be asked to pay a reservation

fee, this is put towards your purchase payments when

the sale is completed.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. There may be a fee payable for our mortgage service, usually £495, plus we will receive commission from the lender.

Call 020 3745 5893peritus-group.co.uk

info@peritus-group.co.uk

Registered Address: Peritus Private Finance Ltd, 30 Broadwick Street, Soho, London W1F 8LX Registered in: England and Wales Reg No. 03490834

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