Shared Ownership Lawyer

With shared ownership, you can purchase a portion of your home from a social landlord or housing association while continuing to pay rent on the remaining portion. Therefore, anyone wishing to get on and move up the housing ladder may find this to be a wonderful opportunity to do so.

However, you must be extremely clear about the shared ownership’s rules because there are certain pitfalls and recurring expenses to take into account that may not be immediately clear.

For example, remembering that shared ownership properties are always leasehold rather than freehold is crucial. A shared ownership lawyer, like those on the Pearl Lemon Legal team, can help you understand the ramifications of this and carry out the appropriate checks to make sure the leasehold’s conditions won’t cause you any issues in the future.

Our knowledgeable shared ownership lawyers have a wealth of expertise with shared ownership transactions as well as related matters like leasehold properties and Help to Buy. We can assist with shared ownership property purchases and sales, remortgaging, and raising your share of ownership (a process known as “staircasing“).

What is Shared Ownership Really All About?

Instead of purchasing a property entirely, shared ownership allows you to purchase a share in a home, with the remaining equity being owned by a social landlord or housing organisation. The share you do not own will thereafter be subject to rent. The rent is typically levied at 2.75% of the property value per year, which is less than the open market rate.

Your down payment can be 5% of the share price rather than the total cost of the property. A shared ownership home can be purchased for between 25% and 75% of its worth at first, with the opportunity to “staircase” up to a greater part at a later time. Rent on the remaining 25% will typically not be due once you attain 75% ownership.

The majority of people use a shared ownership mortgage to pay for their share, but you can also buy equity using savings.

At a time when it is increasingly difficult for people – especially young people with a limited credit history – to get onto the property ladder, shared ownership may be the best possible way to do so.

However, in their excitement and haste to advance into the world of UK homeownership people often do not quite understand exactly how the process works, both as they purchase an ownership share and in the years to come. Working with experienced shared ownership lawyers, like those on the Pearl Lemon Legal team, ensures that they are fully aware of what they are committing to, and their legal rights are as fully protected as possible.

How Pearl Lemon Legal's Shared Ownership Lawyers Can Help

Our knowledgeable shared ownership lawyers can assist with any issues pertaining to shared ownership property, such as:

Acquiring a Property with Shared Ownership

We provide a secure, trustworthy conveyancing process for purchasing shared ownership property. Understanding qualifying requirements and going over shared ownership leasing agreements are both things that our staff can help with. We also handle all of the legal aspects associated with purchasing a shared ownership home, including conveyancing checks.

The contracts involved in a shared ownership partnership transaction are often written for lawyers, not buyers, to understand, and in our experience there are often large portions of the documentation that buyers do not fully understand, sometimes leading to complications down the line.

For example, just who is responsible for repairs to a shared ownership property is an issue that is frequently misunderstood. The fact is that depending on the conditions of the contract you sign with the housing provider, you may be required to pay some or all of the costs associated with making necessary repairs to the property while you are the owner.

Before signing a shared ownership lease agreement, it’s crucial to understand your obligations since if the property ever needs major repairs, you could end up paying a sizable sum of money.

With Pearl Lemon Legal’s shared ownership lawyers on your side, we can ensure that does not happen to you and that your time as a party to a shared ownership lease is every bit as fulfilling and exciting as you hope when you first begin the shared ownership process.

Increasing Your Share/Staircasing

We can assist you in understanding your rights and any requirements that must be satisfied should you decide to buy a second stake in the property, which, as we previously mentioned, is known as staircasing.

Modifying a shared ownership agreement in this way is often not quite as straightforward as it perhaps should be, and the paperwork is not always geared to easy understanding, especially when it comes to things like new rental amounts. Pearl Lemon Legal’s shared ownership solicitors can review such agreements and help ensure you understand, and agree with the terms, in full before you sign anything.

We will also help with the related legal paperwork and refinancing if necessary.

Remortgaging a Home Under Shared Ownership

We can help you secure a new mortgage that meets your needs if you need to remortgage since we can walk you through the entire process. We can make the procedure as simple and stress-free as possible, whether you need to generate more money or simply want to lower your monthly payments on your shared ownership property.

Selling a Home with Shared Ownership

We can make sure you understand the processes if and when it’s time to sell your shared ownership home and move on. As a shared ownership property is often considered a first step on the property ladder and a ‘starter home’ this may happen sooner than you expect.

As you might imagine, selling a shared ownership home can be a good deal more complicated than selling a home that you own in full.

These additional complications cover a range of issues, including the housing provider’s ability to locate a buyer and if you have the right to put the house up for sale at all. Working with a Pearl Lemon Legal shared ownership lawyer will help address and answer these questions in your unique situation and then determine the best possible way forward for you.

Disputes over Properties with Shared Ownership

Property disputes of any kind can be complex issues, and those forced to go through them can find them extremely stressful too. The additional complications that shared ownership properties present can make property disputes even harder to deal with.

Our property law team works with you to reach a mutually agreeable resolution when there is a disagreement regarding a joint ownership property. You can save time and money by resolving shared ownership problems most of the time without going to court, and as our shared ownership lawyers are both accomplished courtroom practitioners and alternative dispute resolution specialists, they will strive to do just that.

We can work with clients who are unsure about how a shared ownership property can be ‘split’ after a divorce or the breakup of a long term relationship, and even when a shared ownership’s property owner has passed away.

Whatever your legal needs in relation to shared ownership, Pearl Lemon Legal can help. Contact us today to learn more

Shared Ownership Lawyers FAQs

What is shared ownership?

Shared ownership allows you to purchase a share of a home from a social landlord or housing association, while continuing to pay rent on the remaining portion. It can be a great way to get onto the property ladder.

What does it mean that shared ownership properties are always leasehold?

Leasehold means that you only own the property for a set amount of time and you do not own the land the property sits on. In the case of shared ownership, the leaseholder is the housing association or social landlord, not the individual purchasing a share.

What is staircasing in shared ownership?

Staircasing refers to the process of increasing your ownership share in the property over time. This can be done up to 100% in most cases, allowing you to fully own the property.

What is the role of a shared ownership lawyer?

A shared ownership lawyer can help you understand the implications of shared ownership, review contracts and lease agreements, assist with shared ownership transactions, and advise on related matters like leasehold properties and Help to Buy schemes.

Can I sell my share of a shared ownership property?

Yes, you can sell your share of a shared ownership property. However, the process can be more complicated than selling a home that you fully own, as it often involves giving the housing association the first opportunity to buy it back or find a buyer for your share.

Can I remortgage a shared ownership property?

Yes, you can remortgage a shared ownership property, which may be necessary if you wish to increase your share in the property (staircase). A shared ownership lawyer can walk you through the process.

What happens to a shared ownership property after a divorce or breakup?

If the shared ownership property was jointly owned, it would need to be decided how the property should be split. This could involve one party buying the other’s share or selling the property and dividing the proceeds. A shared ownership lawyer can provide advice tailored to your situation.

Can Pearl Lemon Legal assist me with shared ownership transactions?

Yes, Pearl Lemon Legal can assist with shared ownership transactions, including purchasing and selling shared ownership property, remortgaging, and increasing your ownership share (staircasing). The team can also advise on and help resolve any disputes over shared ownership properties.

Contact Us

We'd love to hear from you!

For a free, no-obligation conversation about how we might be able to help with your current legal issues, please contact us today.