For many first-time buyers, getting onto the property ladder can feel out of reach. Rising house prices and larger deposit requirements have made buying a home more challenging than ever.

Shared ownership is one option that could make home ownership more affordable, but it’s important to understand how it works before deciding whether it’s right for you.

Here’s what you need to know.

What is Shared Ownership?

Shared ownership is a government-backed scheme that allows you to buy a share of a property, rather than purchasing the whole property outright.

Typically, you’ll buy between 10% and 75% of the property, although the exact share available will depend on the property and the housing provider.

You’ll usually pay:

  • A mortgage on the share you buy.
  • Rent to the housing association on the remaining share.
  • Service charges and other property costs, where applicable.

Although you’re only buying part of the property initially, you’ll usually have the option to buy a larger share in the future through a process known as staircasing.

Who Can Apply?

Shared ownership is generally aimed at people who cannot afford to buy a suitable home on the open market.

It is often popular with:

  • First-time buyers.
  • People who previously owned a home but can no longer afford one.
  • Those with lower deposits.
  • Families looking for an affordable route into home ownership.

Eligibility criteria apply and may vary depending on the property and location.

What Does the Conveyancing Process Involve?

Buying a shared ownership property follows many of the same legal steps as buying any other home, but there are some additional checks involved.

Your conveyancing solicitor will:

  • Review the lease carefully.
  • Explain the terms of your shared ownership agreement.
  • Check your obligations to the housing association.
  • Review service charges and ground rent (where applicable).
  • Deal with your mortgage lender.
  • Carry out property searches.
  • Exchange contracts and complete your purchase.

Because shared ownership properties often involve additional legal documentation, it’s important to instruct a solicitor with experience in this type of transaction.

What is Staircasing?

One of the benefits of shared ownership is that you can usually increase your ownership over time.

This is known as staircasing.

For example, if you initially purchase 25% of a property, you may later decide to buy another 25%, increasing your ownership to 50%.

Some schemes allow you to staircase all the way to 100%, meaning you become the sole owner of the property, although this depends on the terms of your lease and the specific scheme.

Your solicitor can also assist with the legal work involved when purchasing additional shares.

Can I Sell a Shared Ownership Property?

Yes.

If you decide to move, you can usually sell your share of the property.

However, many shared ownership leases give the housing association the opportunity to find a buyer first during a specified nomination period before the property is marketed more widely.

Your solicitor will guide you through the legal process and explain any requirements that apply.

Are There Any Things to Consider?

Like any property purchase, shared ownership has advantages and responsibilities.

Before proceeding, it’s worth considering:

  • The monthly mortgage repayments.
  • Rent payable on the remaining share.
  • Service charges and maintenance costs.
  • Future staircasing opportunities.
  • Lease conditions and restrictions.
  • The costs involved if you later decide to sell.

Understanding these commitments from the outset can help you make an informed decision.

How Ringrose Law Can Help

Buying your first home is exciting, but shared ownership can involve additional legal documents and requirements that are different from a standard property purchase.

At Ringrose Law, our experienced Residential Conveyancing team will guide you through every stage of the process, explaining everything in clear, straightforward language so you know exactly what you’re signing and what your responsibilities will be.

Whether you’re purchasing your first share, staircasing to increase your ownership or selling a shared ownership property, we’re here to help make the process as smooth and stress-free as possible.

To speak to one of our Residential Conveyancing specialists, contact your local Ringrose Law office today.