At Stephensons we have experience over a number of years of dealing a wide range of shared ownership/ shared equity schemes and are able to advise clients fully on the implications of these schemes.

Shared Ownership is becoming a more realistic option for many people struggling to afford their own home. Clients can rest assured that our Residential Conveyancing department has the knowledge to deal with this type of work.

Shared ownership or Shared Equity schemes are generally run by housing associations (HA) and / or registered social landlords (RSL). There are a variety of schemes in existence already and more may well be established. All of the schemes have some common features. In most schemes the buyer pays a reduced price and buys a percentage share of the property e.g if the property is valued at £100k they may buy a 40% share for £40k. The remaining percentage is retained by the HA / RSL and the buyer pays an annual rent on that share. Most schemes have terms allowing the buyer to pay for further percentage shares as their circumstances change and ultimately to buy the entirety of the property. Some schemes are limited to workers in certain job.

All of these schemes have quite complicated terms and conditions and there are only a handful of mortgage lenders who will lend money on these schemes. Those lenders have their own specific requirements for these schemes.

Therefore it is imperative that anyone buying properties under one of these schemes seeks advice from a lawyer who is experienced in dealing with these schemes so that they are properly and fully advised regarding the terms and conditions of the scheme and their mortgage lender.