When you buy a home from us you’ll either be buying a fully-owned outright lease or a shared ownership lease; that lease is the most important document relating to your home as it is the legal contract which ultimately governs our relationship with you.

There are sections of this guide and the information on our website that should only apply if you have a shared ownership lease.

What is shared ownership

Shared ownership is a form of leasehold ownership where you buy a share of your home and pay rent on the remaining share; as you only need a deposit and a mortgage for the share you buy your monthly payments are more manageable. You’ll also have a right to buy additional shares in the property, a process known as staircasing, usually until you own the whole 100% of the lease.

Once you have purchased 100% of your home through staircasing, what happens next will depend on how Housing Solutions own the property. You’ll either continue to own the lease outright with us, or in some cases, you’ll take on full ownership of the property from us. We’ll confirm what will normally happen when you purchase the property, and again as part of any final staircasing transaction.

What is a fully-owned lease

A fully-owned outright lease is where you (or a previous owner) have purchased 100% of a shared ownership lease, or where you (or a previous owner) have purchased the flat via Right to Buy or Right to Acquire. We remain your landlord, and will charge a service charge to cover your contribution towards the cost of maintaining and providing services to your estate/block.

But I own the freehold to my house

In a small minority of cases, you may own the freehold to a house that was once shared ownership, and we are charging an estate charge to cover your contribution towards the cost of maintaining and providing services to a communal area of land nearby (such as the parking area). Your obligation to pay will be set out in your Transfer, but as a freeholder for your house you will be responsible for everything else.

Shared ownership eligibility criteria and affordability

Shared ownership is an affordable way to step onto the property ladder; to be eligible you must:

·       Be unable to purchase a suitable home on the open market;

·       Have a household income of £80,000 a year or less; and

·       Have some savings for upfront costs, and access to a mortgage or capital for your share of the property.

For some properties you may also need to show a local connection, such as working or living in the area. If you already own a home you may still qualify if you’re selling or moving from another shared ownership property.

As part of your application you’ll need to demonstrate that you have a good credit history, and can afford the regular monthly payments and costs involved in buying a home (such as solicitors fees, mortgage costs, stamp duty land tax, and moving costs).

Shared ownership is the ideal step onto the property ladder, designed for people who cannot afford to buy outright on the open market. If you’d like to find out more about purchasing a shared ownership home please head to our sales pages.