How do I buy a shared ownership home?

New properties
Resales
Buying Further Shares
Can I make improvements or alterations to my home?
What happens if I fall behind with my mortgage repayments?
What happens if I fall behind on my rent or service charges?
What do I do if I want to sell?
Where to go for further advice

• Potential purchasers are usually identified by the Local Authority from applicants on their housing list. A housing association may also consider applicants who have applied directly to the association.
• Details of the new properties will be sent to potential purchasers with an application form.
• Applicants may be interviewed by the association.
• If you are offered the opportunity to purchase a new home, you will need to arrange a mortgage to pay for the share you are buying and you will need to appoint a solicitor to handle the legal matters.
• The association will supply you with details of the proposed lease; the valuation of the property; details of the rent; notice of any service charges and the proposed date for the completion of the building.

• Properties becoming available through resale are usually offered to applicants selected from the local authority housing list. Alternatively, applicants who have approached the housing association directly will be considered. If a purchaser cannot be found from these sources then the property may be offered for sale through a local estate agent.
• If you agree to purchase the share offered for sale, you will need to arrange a mortgage to pay for the share and you will need to appoint a solicitor or conveyancer to handle the legal matters.

Bear in mind that the demand for shared ownership is high and there are few houses available. In some areas there may be no properties available at all. Even if you are accepted as a suitable applicant you may have to wait a long time before a house or flat is offered to you

• Details of the procedure will be in your lease.
• You will need to tell your landlord that wish to purchase extra shares.
• Your property will be valued to determine the cost of the extra share. You will have to pay the valuer’s fee.
• You will have 3 months after the valuation to arrange an additional mortgage and to complete the purchase of the additional shares. ADDITIONAL INFORMATION FOR SHARED OWNERS

You must ask your social landlord for written consent to the improvement or structural alteration that you want to make.

If you begin to have financial problems which mean you cannot pay your mortgage, you must let your mortgage lender know as soon as possible. If you cannot agree on a solution with your mortgage lender there is a risk that they will take possession of your property and will sell it to recover the money owing to them.

Under the terms of your lease you are legally obliged to pay the rent and service charge. As soon as you realise that you have a financial problem, contact your landlord to see if they can advise you.

You may sell your share at any time but you must tell your landlord that you want to move. Your lease may have clauses that allow your landlord to nominate a prospective purchaser and you may be required to have your property valued to determine the sale price of your share.

You can buy all the remaining shares in the property yourself and then sell the property outright unless you live in a rural area and are not allowed to buy 100% of the shares.

You will benefit from any increase in the value of the share that you own but you must be aware that you will also be affected if the value of your share falls.

The Housing Corporation’s regional office can give you the names of social landlords who are developing shared ownership in the area that you want. (See address below)

Your local authority or Citizen’s Advice Bureau may be able to give you more detailed, local, advice.

Housing Corporation Regional Office (South)
Leon House
High Street
Croydon
Surrey CR9 1UH

Tel: 020 8253 1400

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