Shared Ownership Conveyancing Solicitors

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• From start to finish, the shared ownership conveyancing process can take around 3-6 months, but this is dependent on individual circumstances.
• Top Tip: Choose an experienced solicitor who specialises in shared ownership cases. It can make all the difference in ensuring the process goes as smoothly and stress-free as possible.
• Consider your future needs as well, and whether your chosen solicitor can help you with staircasing, selling, or remortgaging your shared ownership home.

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With rising property prices and the increasing cost of living, first-time buyers are finding it difficult to get on the property ladder.

The shared ownership scheme helps bridge the gap between a lack of wage increase and property price rises. People who don’t earn enough to maintain a regular mortgage or struggle to save for a deposit can use this affordable home ownership scheme to buy a shared ownership property, or at least a significant share in a property.

The shared ownership process

Shared ownership offers a way to buy a portion of your home and pay rent on the rest. Before diving in, you’ll need to check your eligibility - usually based on your income, existing home ownership status, and your financial situation.

Once eligible for shared ownership, you might hear the term “staircasing,” which refers to the process of buying additional shares in your home over time.

New build vs resale through shared ownership

New build:

• Buying process: Typically involves reserving a property off-plan, securing a shared ownership mortgage, and then completing the sale when the build is finished.
• Style: New-build properties will often come with modern fittings and a warranty on them.
• Community: Usually part of a new development.
• Costs: A premium price for its new condition and potentially higher initial service/ground rent charges.

Resale:

• Buying process: Negotiation with the current property owner or housing association, like purchasing a traditional home.
• Style: Often older but could come with unique characteristics.
• Community: An established, existing neighbourhood.
• Costs: Generally, a lower price overall than a new build, but could require more maintenance.

Shared ownership in 10 steps

• 1Check eligibility: Ensure you meet the criteria for shared ownership.

• 2Find a property: Choose between new build or resale properties.

• 3Reserve the property: Pay a reservation fee to hold your chosen property.

• 4Apply for a mortgage: Secure a mortgage for your share of the property.

• 5Instruct a solicitor: Choose a solicitor experienced in shared ownership.

• 6Valuation and survey: Get the property valued and surveyed.

• 7Draft contracts: Your solicitor will draft and review contracts.

• 8Exchange contracts: Legally commit to buying the property.

• 9Completion: Pay the remaining balance and complete the purchase.

• 10Move-in: Collect the keys and move into your new home.

How long does shared ownership take to complete?

The timeline for shared ownership can vary, but here’s a rough guide for each stage:

Application: 1-2 weeks to determine eligibility.

Mortgage approval: 2-4 weeks depending on lender efficiency.

Finding a property: Variable; could take weeks to months based on availability and your preferences.

Exchanging contracts: 4-6 weeks after your solicitor begins drafting.

Completion and moving in: Typically, 1-2 weeks after exchanging contracts.

From start to finish, expect the process to take around 3-6 months, but this can be shorter or longer depending on individual circumstances.

Staircasing: Staircasing a shared ownership property can take 1-3 months, but this is an estimate.

Want to reduce your shared ownership solicitors fees?

You don't have to opt for a cheap shared ownership solicitor, always check that the price isn't too good to be true and research reviews to make sure your shared ownership solicitors deliver on quality, communication, and timescales.

SAM Conveyancing offers fixed and competitive fees, and you're protected by our no-sale-no-fee policy. Whether you're in Manchester, Birmingham, Bristol, or London we can help you with our nationwide panel of solicitors.

Shared ownership conveyancing

Memorandum of sale

Once your offer is accepted, the housing provider issues a memorandum of sale. This document outlines the terms of the sale and includes details like the agreed price and the names of both parties.

Draft and exchange of contracts

Your solicitor will draft the initial contract and send it to the seller’s solicitor. They will review and negotiate terms until both parties are satisfied. Once the contract is agreed upon, it’s time to exchange contracts.

At this point in the property transaction, the sale becomes legally binding, and you’ll need to pay a deposit (usually 5-10%).

Completion date

After contracts are exchanged, a completion date is set. This is when the remaining funds are transferred, and you legally become the owner of your new home. Your solicitor will coordinate with your mortgage broker to ensure funds are in place.

Mortgage lender

Your solicitor liaises with your mortgage lender to confirm that the mortgage is ready to be released upon completion. They ensure all conditions set by the lender are met.

Key collection

Finally, on the completion date, you’ll receive the keys to your new home. Your solicitor will handle the final paperwork, making sure everything is registered correctly with the Land Registry.

Shared ownership staircasing

Staircasing is the process where you buy more shares (usually in chunks of 10% or 25%) in your shared ownership home from the housing association.

This means you'll pay less rent, but your mortgage payments will increase and you'll have more control over your property.

The staircasing process

• Instruct a solicitor - do this early on so that you're prepared when the valuation report comes in.
• Get a valuation - your staircasing cost depends on the current market value of the property, so you will need a RICS valuation to confirm the value.
• Contact the housing association.
• A memorandum of staircasing is issued by the housing association, this outlines what percentage or share you are purchasing and what the shared ownership premium is.
• Get the mortgage offer - since shared ownership mortgages are specialised products, you'll need to remortgage based on the new share and overall value of your home.
• Completion.

Selling a shared ownership property

Selling shared ownershipproperties can be more complicated than fully owned homes, mainly because you’re not the sole owner.

Steps to sell your shared ownership property

• Check your lease - this will outline all the conditions, procedures, and possible restrictions in selling your home. Pay attention to any clauses that might mention notifying the housing association.
• Contact the housing association - they will usually have the first opportunity to find a buyer for your share and the set period for this is usually 8 to 12 weeks.
• Get a valuation - you will need an official RICS accredited surveyor to value the property, paid for by the seller. The valuation will be valid for 3 months so make sure you send it immediately to your housing association or local authority.
• Find a buyer and market - if the 8 to 12 weeks expires and the housing association does not find a suitable buyer, you can market your share of the property on the open market. This is where you'll contact estate agents.
• The paperwork - you'll need to complete a TA6, Fixtures and Fittings, and Leasehold Information Form, as well as provide a copy of your lease contract.
• Instruct a solicitor - once a buyer is found, whether from the housing association or on the open market, then a solicitor will need to get involved to make sure the transfer of ownership goes smoothly.
• Completion - after the paperwork is signed and sorted and the contracts are exchanged, the sale is finalised.

Selling your shared ownership home if you own 100%

If you have successfully staircased ownership to 100%, you can sell your property just like any other home. You're no longer tied to the housing association or local authority.