At BHW Conveyancing, we understand that the path to homeownership can be both exciting and complex, especially when it comes to shared ownership properties.
Whether you’re a first-time buyer or a seasoned homeowner looking to make your next move, our dedicated team of conveyancing solicitors is here to make your journey smoother, and more informed, and ultimately ensure your next move is a total success.
Shared ownership gives you the opportunity to buy a fraction of a property usually between 10% – 75% of the total market value. This approach significantly lowers your initial deposit requirement and reduces your monthly mortgage payments, making homeownership more attainable.
Verity Drinkall Partner
How shared ownership works
Shared ownership gives you the opportunity to buy a fraction of a property usually between 10% – 75% of the total market value. This approach significantly lowers your initial deposit requirement and reduces your monthly mortgage payments, making homeownership more attainable. The remaining share of the property is owned by a landlord in which you pay a portion of rent. Shared ownership houses serve as an ideal avenue for those aspiring to step onto the property ladder without substantial savings or the means to manage high monthly expenses.
With shared ownership, you can buy a share in a new build home or an existing home offered by housing associations, local councils, and other organisations.
If you already own part of a property through a shared ownership scheme, you can sell your share in the property at any time. There are legal steps that must be followed to pass the shared ownership arrangement to the next owner and your conveyancing solicitor will guide you through the process.
Instruct conveyancing solicitors
The first step is to choose a property solicitor as soon as you can. This way, you can start the process of buying or selling your shared ownership property as efficiently as possible, reducing potential hold-ups.
Complete questionnaires & handover documents
If your selling a shared ownership property, your solicitor will ask you for some information that they will need to put a draft contract pack together for the buyer. They will ask you things like what will be included in the sale, such as garden sheds, fireplaces or cabinets for instance. You’ll also need to provide details regarding any existing shared ownership arrangement. To help you to gather the required information, you’ll be asked to complete the following forms:
The TA6 form will ask you about any boundaries, disputes with neighbours or alterations.
The TA10 form will ask you about any fittings and fixtures within the property.
The TA7 form is only for leasehold properties and provides information about maintenance responsibilities, costs and rights to buy the freehold.
Title documents including the register and plan, conveyances, transfers and the lease if the property is leasehold.
The TA13 form will ask about completion details and whether your house is free from mortgages and liability claims.
Property survey
If you’re buying a shared ownership property you may decide to instruct a surveyor to carry out a survey of the property to inspect its construction and condition. Similarly, if you’re selling then your buyer may do the same. The surveyor will usually require access to the property to complete the survey and they will contact the homeowner to arrange a convenient time.
Property searches
As a buyer, depending on your circumstances, you may require or want property searches to be done. Your conveyancing solicitors will order the property searches from the relevant local authorities. This takes a few weeks and they will come back with important information about the land and surrounding areas such as whether it is affected by radon or contamination, environmental impacts, mines, flood risks or sewage networks. The search results are compiled from data held about the area, and no physical access to the property will be required to complete them.
Title report & enquiries
The buyer’s property solicitors will review all the information sent to them in the contract pack. They will raise any follow-up questions, known as ‘enquiries’, with the seller’s solicitor to confirm and clarify any details like obtaining any safety certificates, building regulations certificates or planning permissions, if applicable. Some enquiries will be answered by the conveyancing solicitor, however, in order to answer others as accurately as possible they will forward them on to the seller for their input. This process may continue until the buyer and their solicitor are satisfied that they have been provided with all of the relevant information about the property to proceed with the transaction.
Paying the mortgage
If you are selling a shared ownership property, your conveyancing solicitors will ask for a redemption statement from your mortgage lender if you have a mortgage on the property. They will normally do this twice, once at the beginning of the transaction to ensure there are sufficient funds coming from the sale to settle the mortgage balance on completion, and once more just prior to completion to ensure they have the most up to date figure considering any interest applied or monthly payments made. Your solicitor will be required to send the required amount to your lender to redeem the mortgage on receipt of the purchase funds from the buyer’s solicitor.
Contracts are signed & returned
Providing you are happy that you wish to go through with the sale or purchase, you will be asked to read and sign the contracts. These will be signed by both the seller and the buyer and sent back to their respective solicitors.
Exchange & Completion
Exchange and completion are the very last stages of the property process. These can happen simultaneously on the same day, or they can happen on different days, depending on the circumstances of the buyer and the seller. Exchange of contracts is where both solicitors confirm that all the legal documents are in order and have been signed by both parties, whereas completion is where the funds are transferred and the keys can be handed over. Once solicitors exchange contracts with each other, all parties are tied into completing the transaction. This allows everyone to finalise plans for the agreed completion day when the current owner must vacate and the new owner can move in.
Your conveyancing transaction in the safest hands – and the reviews to back it up
Overall, I had such a positive experience using BHW as a first time buyer. My property purchase was quite complex and had many delays/ complications. However, Rebecca who dealt with me from the very beginning was fantastic. A very good conveyancer and a credit to the company. She explained everything thoroughly. Always responded to my phone calls and emails. I would say all the team at BHW are highly professional and helpful also including Kim who helped with exchange and completion right at the end. I will use BHW in future sales or purchases. Highly recommend.
Amy Notchell
BHW Residential were fantastic for the sale of my property. Waheeda Alli and her team – Adnan, Elle, Foram and Mariya- were brilliant. They were friendly, approachable, efficient, kept me informed throughout and worked hard to bring my sale to completion in the quick timescale I required. I have no hesitation in recommending them most highly.
Kafi Walker
A massive thanks you to the BHW team in the successful sale of our house, especially to Stephanie Harris, who throughout the whole process has been professional, extremely helpful, dependable and always kept us in the loop!
Lambros Athanatos
The team at BHW especially Lauren & Kimberly were fantastic. The communication was excellent throughout and I felt they did absolutely everything possible to get us across the line as quickly as possible whilst also protecting our interests. I would highly recommend BHW to anyone buying or selling a property.
Chris Penney
Could not recommend BHW enough! Excellent communication and updates throughout the sale and purchase. Would definitely use this solicitors again! Thank you for your fantastic service and for making our move so much less stressful!
Chloe Portch
What to expect from BHW Conveyancing
Buying a shared ownership home is a very exciting step but it’s important that you understand the obligations and conditions that you must meet. Having a reliable solicitor who knows what to be aware of when it comes to shared ownership properties is absolutely crucial.
At BHW Conveyancing, our teams work diligently to complete all necessary legal processes promptly, ensuring you can move into your new home without unnecessary delays. Whether you’re a first-time buyer or an existing homeowner, we are here to support you and attend to your individual needs, no matter how complex the transaction.
We believe in transparent communication. You will have a dedicated point of contact who will keep you informed at every stage of the process, addressing any questions or concerns promptly. Our goal is to make your property journey a positive and stress-free experience.
BHW Conveyancing is part of BHW Solicitors Limited, which is one of the leading property law firms in Leicestershire and the wider East Midlands. BHW is a top ranked real estate firm in the East Midlands by the Legal 500, as well as being ranked in the Chambers & Partners legal industry guide.
We hold the Conveyancing Quality Scheme (CQS) accreditation and have been awarded the Lexcel quality standard by the Law Society. This recognises our impeccable standards of competence, risk management and client care practices.
Shared ownership is certainly a cheaper way to get onto the property ladder as you only have to buy a percentage of a share in the property, typically between 10%-75%. However, you will need to factor in any extra costs involved in buying a shared ownership home such as solicitor fees, Stamp Duty, monthly mortgage payments, the rent to the landlord for the remaining share and any other costs such as service charges or maintenance fees. The rent is usually around 2.75% per year of the share that the landlord owns, however, this can vary depending on the type of home and the location.
Can I sell my shared ownership?
Yes, you can sell your shared ownership home. If you do not own 100% of the ownership, you will need to inform your landlord that you intend to sell the home. The landlord then has time to find a buyer for your share, or they might decide to buy your share themselves. If they cannot find a buyer within the time called the “nomination period”, you will have the opportunity to sell your share on the open market through an estate agent for instance.
Can anyone qualify for shared ownership?
The shared ownership scheme is run by the government and allows those over the age of 18 with a household income of £80,000 or less per year the chance to own part of a property. You must be a first-time buyer or have owned your own home in the past but cannot afford to do so now. You could also be eligible for a shared ownership home if you are an existing shared ownership owner, you currently own a home and want to move but cannot feasibly afford to buy a new one that meets your needs, or you’re forming a new household such as starting a new family or relationship.
What are the disadvantages of shared ownership?
The disadvantage of owning shared ownership houses is that you often have less flexibility to do as you want with the property. For example, if you want to sell the house, you must inform the landlord and they have a period of time to allow them to sell it if you don’t own 100%.
Those buying through shared ownership tend to have fewer mortgage deals to choose from and can experience higher mortgage rates than traditional mortgages. In addition to paying your mortgage, you must pay your landlord rent for the share that they own in the property. The rent can increase over time which could be as frequently as once per year depending on the lease. While owning part of the property gives you some protection, if you fail to pay your rent, you can still be evicted.
Nicola Dixon
Legal Executive
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