Information booklet on Shared Ownership

What is Shared Ownership?
Shared Ownership is a government-backed scheme which makes home ownership available and more affordable to those who want to buy their own home, but cannot afford to buy outright.

Through this scheme you buy a share in the home you want, usually 50% of the market value, and you rent the other share from us at a subsidised rate. You can buy further shares in your home once you have lived in the property for 12 months and eventually own the property outright, when you can afford to do so. This is known as ‘staircasing’. There is, however, no obligation to buy further shares if you do not wish to.

If you have any queries on Shared Ownership and properties available please contact us on 0121 766 1100. 

Apply for Shared Ownership
If you would like to apply for any of the above Shared Ownership properties the first step is to complete our application form. On receiving this we will make certain checks to ensure you are eligible. We will then identify suitable properties and arrange for you to view. An informal interview will be arranged where we can explain Shared Ownership in detail and assess affordability. Once your application is approved and you are happy to go ahead we will continue to offer help and assistance during the sales process when required.

After moving in you will have dedicated staff at Family Housing who will continue to offer support and assistance on a variety of issues relating to your home and lease.

Who is eligible?
Shared Ownership is intended for people who cannot afford to buy a suitable home outright, for example:-

• First time buyers looking for their first home
• Those who need to move due to marriage or relationship breakdown
• Those affected by clearance due to redevelopment
• Job movers who are joining an area of higher property values than the one they have moved from

Can I buy with my partner or friends?
Yes, that’s not a problem. Up to four people can become joint owners. You will need to speak to your solicitor who will give you guidance.

How will I know if Family will sell me a home?
Once a suitable property is available you will meet with one of our representatives. They will take time to explain Shared Ownership and answer any questions you may have. If you wish to proceed, your application will be assessed and shortly after you will be contacted to let you know if you have been successful or not.

How do I arrange a mortgage?
You will need to arrange your mortgage. This can be done through your bank or building society. We are unable to give mortgage advice as we are not registered to do so.

What are the costs involved?
Before you decide to purchase you will need to budget for the costs involved. You will need money to pay your reservation fee, deposit, legal fees, valuation and possible stamp duty.

Reservation Fee
You will need to pay a reservation fee of £350. This will hold the property for you for a period of eight weeks whilst your solicitor deals with the purchase of the property. This money will be credited to your rent account when you complete on the property. However, if you decide not to go ahead, this money will not be refunded and will be used to offset our administration costs.

If you are arranging a mortgage to purchase your share you will usually require a deposit of 5% as most lenders will only lend up to 95% of the share you are buying.

Legal Fees
You will need a solicitor who will act for you to make sure all the legal requirements are taken care of and to make sure you understand what both you and Family are responsible for.

We recommend you obtain at least two quotes in writing detailing total charges including land registry searches and VAT before you instruct a solicitor to act on your behalf.

Stamp Duty
You may be required to pay stamp duty depending on the 100% value of the property.

The Lease
You will sign a lease because you will be renting part of your home. The lease will state the rent, management fee, building insurance and in some cases a service charge. It will detail what both you and Family are responsible for.

If you choose to exercise your right to staircase to own the property outright, the freehold will be transferred to you, in the majority of cases, at no extra cost.

The lease also provides a mortgage protection clause which makes it unnecessary to pay Mortgage Indemnity Insurance to your chosen mortgage lender, saving you a considerable sum of money.

Valuation Costs
Your chosen mortgage lender will require a valuation to be made on the property. There are various types of valuations providing different levels of information at different costs whioch you are responsible for. It is important to choose the valuation that best suits the age and condition of the property and not just the cheapest.

Moving In
Once you have moved in you will be responsible for the ongoing cost of ownership which you will need to budget for. These will include the mortgage, rent and household costs such as Council Tax, contents insurance and fuel bills.

Repair and Maintenance
You are responsible for repairing and maintaining your home. If you pay a service charge we will carry out works covered by this charge which will be clearly stated within your lease. You can make improvements or alterations to your home but you must first obtain written agreement from Family Housing and comply with local planning and building regulations. This allows the added value of these works to be discounted fro the purchase price, if you exercised your right to staircase to outright ownership.

Moving On
If you want to move on contact our customer service department or phone 0121 766 1100 and we will advise you in selling your share to someone else. Alternatively, you could buy the remaining share from us and sell the property outright on the open market. The price for buying shares is set by an Independent Valuer on the basis of the market value at that time.