Considering shared ownership to get onto the property ladder? Ensure you seek good, independent advice from solicitors with extensive knowledge and experience in conveyancing this form of tenure. That’s the advice from CDRA’s executive committee member and planning expert, Dick Ware.
It was Margaret Thatcher’s government and the 1980 Housing Act that introduced shared ownership. Over the past forty plus years, the scheme has provided a positive first step on the property ownership ladder for thousands of individuals and families. It is also a healthy market. In 2022-23 over 20,000 shared ownership homes were built. That is the highest number for over ten years. 211 of those homes were built at Tolworth as part the Signal Park development (read more about that scheme).
However, while many shared ownership property owners are enjoying the benefit, others are feeling trapped, paying over half their income on their mortgage, the rent on shared ownership part of the property, and escalating service charges. Some reporting service charges in excess of £5,000 a year.
With Signal Park developers Countryside and The Guinness Partnership having recently submitted their planning application for Phase Two, we felt it was an appropriate time to share our advice about shared ownership from CDRA’s planning specialist Dick Ware.
Dick says: “If you are considering shared ownership, ensure you get good, independent advice from experienced solicitors in this form of tenure. The emphasis being that the advice is completely independent.
Make sure you know all the pros and cons, including maintenance costs, and that you have a written record of all the transactions between you, your solicitor, and the freeholder or his agent.
Do not cut costs on this aspect. Buying property on shared ownership tenure is a more expensive way than the open market provides. However, it does provide a means of assisting people to get on the house ownership ladder earlier than those who are struggling to find the initial deposit required in a straight freeholder transaction.”
Find out more about shared ownership