LEGAL
The conveyancing process for staircasing and resales Shared ownership is a great option for those looking to take their first steps into homeownership. Coralie Phelan, Partner and Head of Resales and Staircasing at Prince Evans Solicitors, looks at the conveyancing process for Resale Purchase and Staircasing
BACKGROUND – WHAT IS SHARED OWNERSHIP?
HOW DOES SHARED OWNERSHIP RESALE WORK? 9 You can purchase a share of the property, usually between 10% and 75% subject to eligibility criteria 9 You pay rent to the housing association on the percentage you do not own 9 You will have to a pay a service charge to cover any shared services or estate maintenance 9 You will not be able to rent out or sublet until you own 100% 9 Your lease will outline your repair and maintenance responsibilities 9 The lease will provide for annual upwards-only rent increases. WHAT ARE THE ADVANTAGES OF RESALES 9 Resale properties are often more affordable than new build 9 The rent may be less on a resale property than on a new one
9 You will be required to purchase the maximum share you can afford.
WHAT ARE THE ADVANTAGES? 9 Low deposit – this could be 5% rather than the traditional 10% of the purchase price if agreed 9 Your landlord will be under an obligation to act responsibly and ensure it only allows you to purchase the property if you can afford to keep up with the repayments on your mortgage and the rent you pay it and other associated outgoings. This is due to the scheme being Government-backed with the associated reassurances that there are certain rules that your Landlord must abide by. You can then decide whether resale shared ownership is right for you. Resale shared ownership being a pre-loved property with the seller already in occupation.
Shared ownership allows you to buy a home through the shared ownership scheme if you meet the eligibility criteria. You buy a share of the property and pay rent on the part you do not own. The eligibility requirements for the scheme are as follows: 9 You must have a combined annual household income of under £80,000, or £90,000 in London 9 You must not own or part-own another property on completion 9 You cannot afford all of the deposit and mortgage payments for a home that meets your needs.
NEXT STEPS
9 You will need to meet the scheme’s affordability criteria 9 You need to apply for a mortgage (unless you are a cash buyer)
98 First Time Buyer April/May 2024
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