Archive for the ‘Housing’ tag
Shared Ownership
Shared ownership is a scheme intended to help people who cannot afford to buy a home outright. You buy a share of the property and pay rent on the remaining share you do not own. The property will be purchased with the assistance of a housing association.
share the burden
To qualify for the scheme you would usually need to be in housing need and be unable to afford outright purchase. Priority may be given to existing public sector tenants or those on local authority or housing association waiting lists.
Although you have not bought the property outright you will have the normal rights and responsibilities of a full owner-occupier. The housing association will grant you a lease which sets these out and will include details of your responsibility for repair and for payment of rent and service charge. It will also entitle you to buy further shares in the property and will set out how you can do this.
The share you purchase is funded by a mortgage. Normally applicants buy a 50% share but the higher the share you purchase the less rent you will have to pay.
It is important to give careful thought to the costs and responsibilities of buying your own home. You may want to contact a housing advice centre for guidance or the Citizens Advice Bureau. Your local authority may also be able to help.
Most shared ownership purchases are dealt with through a housing association who are funded by the Housing Corporation or the local authority but some will use their own money.
There are also a number of other types of schemes such as shared ownership offered by a builder on a new development; leasehold schemes for the elderly; self build schemes; Right to Buy which might be acquired by a tenant of a non-charitable housing association; Home-buy for existing council or housing association tenants or those on the housing waiting list where an interest free loan of 25% may be available; and finally certain schemes for people with learning difficulties.
For more information contact Simon Pook on 01635 521212 or simon.pook@clmlaw.co.uk
