Shared ownership is a scheme set up by housing associations to allow individuals and families take the first step on the property ladder, by only owning a share of a property (between 25% and 75%). This allows you to get on to the property ladder but pay rent on the share not yet acquired.
During your ownership of the property you can purchase more shares in the property and this is often referred to as staircasing.
However, most owners are unaware of the restrictions imposed on a re sale, if you have not acquired 100% ownership at the point the property is marketed for sale.
If you wish to sell the property, you can do so if you own 100% of the shares in the property. However during the first 21 years of ownership you will need to provide the housing association first refusal of the property. This means if they want to, they will purchase the property from you.
If you do not own the full 100% share, the housing association will find a buyer for the property. Therefore, you will not have to market the property on the open market via an estate agent unless the association permits you to do so.
Obviously after the first 21 years of ownership you can sell the property in the normal way.
We are very familiar with the shared ownership scheme process at EHL and our property team will be more than happy to guide you through the process. Call us on 0116 266 5394 to find out more.Talk to our legal team
The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.