What are the rules on shared ownership?
General Shared Ownership eligibility criteria
You must be aged 18 or older. Your annual household income if buying outside of London must be less than £80,000. Your annual household income if buying in London must be less than £90,000. You will normally be a first time buyer or be in the process of selling your home.
Can you have a lodger in shared ownership?
Shared Ownership leases do not allow you to sublet your home. … If you intend to take a lodger, you should check with the housing association you are purchasing the property from, but most Shared Ownership leases allow this.
What happens to a shared ownership property when you die?
What happens if I die? If you hold the lease in a single name or as joint tenants, the shared ownership lease can be passed on or sold in line with your will or the law of intestacy (dying without making a will). If you hold a joint tenancy, the lease automatically passes to the survivor.
Do you have to live in shared ownership?
A The whole point of the shared-ownership scheme is that it enables people who can’t afford to buy a property to get on the property ladder by buying a part-share and paying rent on the rest. … If you are able to buy a property but do not intend to live in it and so will rent it out, you will need a buy-to-let mortgage.
Is shared ownership a good idea 2020?
With shared ownership schemes, the deposit you pay will be far lower than if you were to get a mortgage for the whole property. If you don’t have many funds to start out with, Shared Ownership could help you avoid living in a ‘not so nice’ part of town or waiting around to scrape a deposit together.
Why is shared ownership bad?
Unlike full owners of leasehold properties who are unhappy with the firm running their block, shared owners cannot exercise the “right to manage” their building – it will always be run by the housing association. Another downside is that you could potentially lose your property if you fall behind on rent payments.
Who pays for repairs in shared ownership?
Be aware that even though you own a share of the property, say 30%, you are responsible for paying the full maintenance and repair costs. There are also likely to be restrictions on whether you can rent the property out. In the great majority of cases, sub-letting is not allowed.
Can you be kicked out of shared ownership?
Shared ownership properties are always leasehold, meaning you only own a property for a fixed period of time. … Because you own a share of the property, the housing association cannot evict you. They cannot evict you for non-payment of occupancy payments in the same way as a landlord can evict a tenant.
Can you negotiate on a shared ownership?
Property prices are (in theory) at market value, you just have the option to buy a part of the property which tends to be between 25% and 100%. … If you buy off plan and the market drops, you can’t re-negotiate the price; you’ll still need to pay the higher amount.
Are shared ownership properties hard to sell?
And according to Ms Nettleton, selling a shared ownership property isn’t as hard as people have been led to believe. … “Normally, there is a nomination period where the home is offered to other shared ownership buyers first, but, if one can’t be found it can then be sold on the open market.”
What are the pros and cons of shared ownership?
Deposits are generally lower than buying on the open market. Shared Ownership makes mortgages more accessible, even if you’re on a lower wage. Your monthly repayments can often work out cheaper than if you had an outright mortgage. The monthly payments are also generally lower than if you were to rent privately.
Can you swap a shared ownership house?
Yes, you can sell your shared ownership home at any time to: buy another shared ownership home. buy another home outright. move elsewhere.
What is the minimum income for shared ownership?
The general eligibility criteria for Shared Ownership is as follows: You must be at least 18 years old. Outside of London your annual household income must be less than £80,000. In London, your annual household income must be less than £90,000.