Frequently Asked Questions

Making sense of Shared Ownership

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.

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.