Frequently Asked Questions

Making sense of Shared Ownership

Guidance On Viewings During the Coronavirus (Covid-19) Pandemic Period
Visiting Us In order to maintain social distancing, all visits will be by appointment only. In line with government guidelines we have implemented the following rules during your viewing experience :
  • Prior to the viewing, you will be contacted by the sales agent managing the viewing at your chosen development, to discuss what to expect through the viewing process.
  • You should not attend a viewing if you are experiencing symptoms. If you, or a family member you share a household with, experience any symptoms before the appointment, please contact the sales agent and an alternative appointment will be arranged for you
  • Viewings should be kept to only the sales agent (who will stay at a 2-metre distance) and a maximum of two adults from your household.
  • No children are allowed to attend viewings.
  • All room doors will be left open and light switches turned on by the agent in our show homes, prior to the viewing.
  • Please refrain from touching anything once you are inside of the show apartment/house.
  • All door handles and light switches will be thoroughly cleaned before and after every viewing.
  • There would be a suitable place for you to wash their hands before and after the viewing, please ask the agent for details.
  • All parties should always carry their own hand sanitiser at all times.
  Making an appointment for a viewing is really simple and can be done over the phone by calling the number for the development you would like to visit, see list below: Help & Support If you or anyone in the wider community spots any Covid-19 breaches on our developments or has any other concerns, you can email sales@landgah.com with the development name and any further details. We will then take any appropriate action. To read the full government guidelines please click here.
What is a good credit history?
Credit History The better your credit history, the better position you will be in when it comes to buying your Shared Ownership home. To help you understand some of the key factors determining your credit history, the following statements must be true:
  • I have not been declared bankrupt within the last 6 years.
  • I do not have an unsatisfied County Court Judgement (CCJ) registered against my name.
  • I am not in arrears with any tenancy payments or mortgage repayments.
  • I do not have any active Individual Voluntary Credit Agreements in place.
  • I have not had a home repossessed in the last 5 years.
If the above statements are true and your credit history is not as good as it could be then consider the following factors that might be affecting your credit history:
  • History of late or missed payments. 
  • Going over your credit limit.
  • Defaulting on credit agreements.
  • Making too many credit applications in a short space of time.
  • Joint accounts with someone with a bad credit record.
  • Frequent cash withdrawals on your credit card.
  • Errors or fraudulent activity on your credit report that’s not been detected.
  • Not being on the electoral roll.
For impartial advice relating to debt or money concerns, contact your local Citizen Advice Bureau or visit; www.citizensadvice.org.uk/debt-and-money/help-with-debt/  
How does Shared Ownership work?
The Shared Ownership scheme is simple, you  buy  an initial share of between 25% and 75% of the apartments full value and pay a subsidised rent on the remainder. You may purchase further shares (up to 100%) as your circumstances change, should you choose to.
Is it cheaper than renting?
Shared Ownership can be cheaper than renting privately as the mortgage cost and low rent usually add up to less than the equivalent rental payments to a landlord.
What if I already have a home?
If you already own a property you would need to have confirmed the sale of your home when you apply to buy via Shared Ownership. Your application would be assessed based on your housing need for you to be considered for Shared Ownership.
Will I need a deposit?
Yes you still need a deposit, but only on the percentage of the property you are buying. Mortgage deposits can often be from 5% of the share value.
How is the rent calculated?
On the share you don’t own, we charge a rent of 2.75%. For example if you buy a 40% share of the home you pay 2.75% rent on 60%. Our sales consultant and our financial advisor can give you further details based on your specific circumstances.
Can I buy a property on my own?
If you earn or have a household income up to a maximum of £80,000 (or £90,000 in London) per annum, you could be eligible. You can also use Shared Ownership to buy alone or with another person as long as your joint incomes don’t exceed the maximum earnings bracket.
How do I know what percentage I can purchase?
You can purchase any share from 25% to 75% of the initial purchase price, but some properties may carry specific minimum share restrictions. You will be asked to speak to a financial advisor to assess what share you can buy that is both affordable and sustainable.
Can I buy additional shares in the property?
Yes you can. This is known as ‘staircasing’. When you buy more shares in your home, your home is re-valued and you buy the shares at the current market value, at the time you are buying the shares. Most homes allow you to staircase up to 100% ownership.* *Some developments do have a maximum staircase threshold of 80%, meaning this is the maximum equity available to purchase.  The Sales team can advise if the home you are interested in has this restriction.
Can I rent out my property?
You cannot grant an assured short hold tenancy on a Shared Ownership property. If you want to get a lodger you can, however you need to be able to afford to purchase the home without any assistance.
Will I have to pay Stamp Duty?
If you (and anyone you are buying with) have never owned a property before, and the price is no more than £500,000, you will not pay any tax on the first £300,000 of the purchase price, and 5% on any  portion from £300,0001 to £500,000. If you’ve owned a property before, Stamp Duty is 0% on the first £125,000, 2% on the next £125,001 - £250,000, with the rest taxed at 5% up to £925,000. Stamp Duty Land Tax is a tax on land transactions above a certain threshold set  by the Inland Revenue. When you buy a share in one of our homes you may have to pay a Stamp Duty Land Tax (SDLT). There are two ways to pay on a newly built (new Lease) property: Making a one off payment based on the total market value of the property, or 2. Paying any SDLT due in stages. If you decide to make a one off payment upfront this is known as making a “market value election”. If you choose to pay SDLT in stages then you  pay SDLT on the initial purchase amount. Should you choose to pay SDLT in stages, you will not have to make any further payments until you own more than an 80% share of the property. Each of the options of paying the SDLT could suit you, depending on your circumstances. It is up to you to decide. Your solicitor can give you further details on the calculations based on your specific requirements.
What if I want to sell my property?
When you want to sell your Shared Ownership home Legal & General Affordable Homes has a time period specified within your lease to offer the property to another eligible shared owner. If we are unable to source a suitable purchaser in this  time, you can put the property on the open market.
Will I pay a service charge, estate management charge or ground rent?
Service charges are fees that leaseholders pay to cover their share of the cost of maintaining the building they live in.  Estate management charges cover the cost to upkeep the external landscaped areas and roads that are not adopted by the local authority. For Apartments and Coach Houses: Service charges usually cover the costs of repairs to shared areas and the outside of the building, such as roof, external pipes and drains. It also covers cleaning and buildings insurance.  Coach Houses will also have to contribute to any estate management charge that is due. For Houses: Most houses will be part of a development where all properties contribute to an estate management charge.  This will include buildings insurance whilst you are a Shared Owner. Your sales consultant will provide you with the costs for the above services and your solicitor will be provided with the  breakdown of what the costs cover. Ground rent is not generally applicable until you purchase 100% of your home.  
Who will manage my property and the communal areas if I live in an apartment building?
Legal and General Affordable Homes will have appointed a Management Provider to manage your property on our behalf, they will be in touch with more information nearer the time of completion. They will collect service charges and oversee the management and maintenance of the building and any communal areas on our behalf.
Can I decorate/make improvements to my home?
Yes, you don’t need our permission for decorating or simple repairs, however you would need to get permission for larger works to ensure it does not affect the structure of the building.

Visiting Us

In order to maintain social distancing, all visits will be by appointment only.

In line with government guidelines we have implemented the following rules during your viewing experience :

  • Prior to the viewing, you will be contacted by the sales agent managing the viewing at your chosen development, to discuss what to expect through the viewing process.
  • You should not attend a viewing if you are experiencing symptoms. If you, or a family member you share a household with, experience any symptoms before the appointment, please contact the sales agent and an alternative appointment will be arranged for you
  • Viewings should be kept to only the sales agent (who will stay at a 2-metre distance) and a maximum of two adults from your household.
  • No children are allowed to attend viewings.
  • All room doors will be left open and light switches turned on by the agent in our show homes, prior to the viewing.
  • Please refrain from touching anything once you are inside of the show apartment/house.
  • All door handles and light switches will be thoroughly cleaned before and after every viewing.
  • There would be a suitable place for you to wash their hands before and after the viewing, please ask the agent for details.
  • All parties should always carry their own hand sanitiser at all times.

 

Making an appointment for a viewing is really simple and can be done over the phone by calling the number for the development you would like to visit, see list below:

Help & Support

If you or anyone in the wider community spots any Covid-19 breaches on our developments or has any other concerns, you can email sales@landgah.com with the development name and any further details. We will then take any appropriate action.

To read the full government guidelines please click here.

Credit History

The better your credit history, the better position you will be in when it comes to buying your Shared Ownership home. To help you understand some of the key factors determining your credit history, the following statements must be true:

  • I have not been declared bankrupt within the last 6 years.
  • I do not have an unsatisfied County Court Judgement (CCJ) registered against my name.
  • I am not in arrears with any tenancy payments or mortgage repayments.
  • I do not have any active Individual Voluntary Credit Agreements in place.
  • I have not had a home repossessed in the last 5 years.

If the above statements are true and your credit history is not as good as it could be then consider the following factors that might be affecting your credit history:

  • History of late or missed payments. 
  • Going over your credit limit.
  • Defaulting on credit agreements.
  • Making too many credit applications in a short space of time.
  • Joint accounts with someone with a bad credit record.
  • Frequent cash withdrawals on your credit card.
  • Errors or fraudulent activity on your credit report that’s not been detected.
  • Not being on the electoral roll.

For impartial advice relating to debt or money concerns, contact your local Citizen Advice Bureau or visit; www.citizensadvice.org.uk/debt-and-money/help-with-debt/

 

The Shared Ownership scheme is simple, you  buy  an initial share of between 25% and 75% of the apartments full value and pay a subsidised rent on the remainder.

You may purchase further shares (up to 100%) as your circumstances change, should you choose to.

Shared Ownership can be cheaper than renting privately as the mortgage cost and low rent usually add up to less than the equivalent rental payments to a landlord.

If you already own a property you would need to have confirmed the sale of your home when you apply to buy via Shared Ownership.

Your application would be assessed based on your housing need for you to be considered for Shared Ownership.

Yes you still need a deposit, but only on the percentage of the property you are buying. Mortgage deposits can often be from 5% of the share value.

On the share you don’t own, we charge a rent of 2.75%.

For example if you buy a 40% share of the home you pay 2.75% rent on 60%.

Our sales consultant and our financial advisor can give you further details based on your specific circumstances.

If you earn or have a household income up to a maximum of £80,000 (or £90,000 in London) per annum, you could be eligible. You can also use Shared Ownership to buy alone or with another person as long as your joint incomes don’t exceed the maximum earnings bracket.

You can purchase any share from 25% to 75% of the initial purchase price, but some properties may carry specific minimum share restrictions. You will be asked to speak to a financial advisor to assess what share you can buy that is both affordable and sustainable.

Yes you can. This is known as ‘staircasing’.

When you buy more shares in your home, your home is re-valued and you buy the shares at the current market value, at the time you are buying the shares. Most homes allow you to staircase up to 100% ownership.*

*Some developments do have a maximum staircase threshold of 80%, meaning this is the maximum equity available to purchase.  The Sales team can advise if the home you are interested in has this restriction.

You cannot grant an assured short hold tenancy on a Shared Ownership property. If you want to get a lodger you can, however you need to be able to afford to purchase the home without any assistance.

If you (and anyone you are buying with) have never owned a property before, and the price is no more than £500,000, you will not pay any tax on the first £300,000 of the purchase price, and 5% on any  portion from £300,0001 to £500,000.

If you’ve owned a property before, Stamp Duty is 0% on the first £125,000, 2% on the next £125,001 - £250,000, with the rest taxed at 5% up to £925,000. Stamp Duty Land Tax is a tax on land transactions above a certain threshold set  by the Inland Revenue. When you buy a share in one of our homes you may have to pay a Stamp Duty Land Tax (SDLT).

There are two ways to pay on a newly built (new Lease) property:

Making a one off payment based on the total market value of the property, or 2. Paying any SDLT due in stages.

If you decide to make a one off payment upfront this is known as making a “market value election”.

If you choose to pay SDLT in stages then you  pay SDLT on the initial purchase amount. Should you choose to pay SDLT in stages, you will not have to make any further payments until you own more than an 80% share of the property.

Each of the options of paying the SDLT could suit you, depending on your circumstances. It is up to you to decide. Your solicitor can give you further details on the calculations based on your specific requirements.

When you want to sell your Shared Ownership home Legal & General Affordable Homes has a time period specified within your lease to offer the property to another eligible shared owner. If we are unable to source a suitable purchaser in this  time, you can put the property on the open market.

Service charges are fees that leaseholders pay to cover their share of the cost of maintaining the building they live in.  Estate management charges cover the cost to upkeep the external landscaped areas and roads that are not adopted by the local authority.

For Apartments and Coach Houses: Service charges usually cover the costs of repairs to shared areas and the outside of the building, such as roof, external pipes and drains. It also covers cleaning and buildings insurance.  Coach Houses will also have to contribute to any estate management charge that is due.

For Houses: Most houses will be part of a development where all properties contribute to an estate management charge.  This will include buildings insurance whilst you are a Shared Owner.

Your sales consultant will provide you with the costs for the above services and your solicitor will be provided with the  breakdown of what the costs cover. Ground rent is not generally applicable until you purchase 100% of your home.

 

Legal and General Affordable Homes will have appointed a Management Provider to manage your property on our behalf, they will be in touch with more information nearer the time of completion.

They will collect service charges and oversee the management and maintenance of the building and any communal areas on our behalf.

Yes, you don’t need our permission for decorating or simple repairs, however you would need to get permission for larger works to ensure it does not affect the structure of the building.