Shared Ownership explained

Following the opening of our Central Milton Keynes office in 1983 Franklins Solicitors LLP were directly involved with the new concept of Shared Ownership and as a result are experienced in dealing with both New Build and Re-Sale Shared Ownership purchases and sales as well as staircasing (explained below).

Shared Ownership is sometimes referred to as “part-rent part-buy”.

You effectively purchase a share of the property and pay rent on the rest.  Generally, the share purchased is between 25% and 75% but in some circumstances it can be as low as 10%.

Under the Scheme a buyer only pays a mortgage on their share of the property.  The remaining portion belongs to the Housing Association, and you would pay rent on that part.

After purchasing a Shared Ownership property, you may have the option to increase the percentage you own (this is known as staircasing) which would in turn reduce the rent payable to the Housing Association for the shares then owned as opposed to rented.  Most Leases also allow you to staircase all of the remaining shares owned by the Housing Association so that you would then own the property outright.

Shared Ownership is not limited to first time buyers.

There is detailed criteria for being eligible for a Shared Ownership property and the same does vary between Housing Associations

Franklins have lawyers who are specialised in dealing with both New Build and Shared Ownership properties and would be delighted to offer their expertise to you.

For further advice and assistance please contact our Residential Property team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk