Frequently Asked Questions

Shared Ownership allows you to buy a portion of a property generally between 25% and 75%, although sometimes as little as 10% of the full market value. This is quite a big range, so you’ll need to think about is what percentage is affordable to you and what deposit you have available, or you’ll realistically be able to save.

We encourage our customers to buy the biggest share that they can afford, but generally we recommend between 25% and 45% of a person’s monthly household income should be go towards the cost of housing. We recommend talking to your mortgage broker to understand more about your affordability.

Please speak to one of our Sales Consultants who can put you in touch.

At Legal & General Affordable Homes, our residents are at the heart of everything we do which is why we’ve created our Shared Ownership Cost of Living Hub to answer any questions you may have about your costs. Full of information and resources to help you as a Shared Owner, we want to support you in every way we can.

Across the country, costs are increasing and we’re all feeling the impact. We want you to know that we’re here to support you in a variety of ways. Have a read of our FAQs and get in touch with your Management Provider if you have any further questions.

How much is my rent going to increase? Why is it increasing so much?

The rent you pay on the unowned share of your property will increase by 13.1% from 1 April 2023.

Under the terms of your lease your net rent can increase each year by Retail Price Index plus 0.5%. Inflation has risen at an unprecedented level and that has directly affected rents across the sector. Rent calculations are influenced by wider economic factors like retail price inflation and therefore can vary each year.

However, at Legal & General Affordable Homes we recognise that meeting living costs is a real challenge for some people, and we are committed to supporting residents during this difficult period.  All Shared Ownership residents will receive a voluntary monthly rent credit payment – they do not have to apply separately and the credit does not have to be paid back.

Do I have to amend by Direct Debit? Is there anything I need to do to ensure I receive the credit?

No – we will take care of everything for you so there’s nothing you have to do.

How will Legal & General Affordable Homes help with the rent increase cost?

To help control increased costs and outgoings, we are making a voluntary contribution to help Shared Ownership residents in the form of a 6.1% monthly rent credit. 

This credit will be applied to your rent account for one year starting 1 April 2023. This means our Shared Ownership residents will experience a rent increase of no more than 7% - in line with the government mandated social rent cap.

Will residents get a contribution towards service charges and other costs too?

The monthly rent credit will apply to net rent only – it will not be applicable towards service charges or any other associated costs.

How will I receive the monthly credit?

The monthly rent credit from Legal & General Affordable Homes will be credited to your rent account from 1 April 2023 for one year.

Do I have to pay the rent credit back?

No, you do not have to pay the monthly rent credit contribution back. It will credited to your rent account for a year starting 1 April 2023, when the new rent level kicks in.

How long will LGAH pay the monthly rent credit?

We will apply this credit of 6.1% for one year, starting 1 April 2023. It will be credited directly to the rent accounts of the Shared Ownership residents with LGAH.

What happens after 1 April 2024?

The monthly rent credit contributions will end on 1 April 2024 when we re-evaluate the yearly rent increase. We will be in touch in early 2024 to discuss the future changes in rent.

I am an Affordable Rent tenant with LGAH. Am I eligible?

The voluntary monthly rent credit payment is only available to Shared Ownership residents. Rent rises for tenants will be capped at a maximum of 7%.

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/

Visiting Us

Where possible we welcome visitors to our sales suites, however we are unable to facilitate viewing on some developments.  In those circumstances, our sales team can provide you with help and information to enable you to make a buying decision. This can include providing photography, CGI's or virtual tours, or talking you through the floor plans thoroughly.

Where we are able to invite you into one of our homes for sale we want to ensure your safety.

Visits will be by appointment only. Virtual viewings are also available, please contact our sales team to book your tour today.

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.

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.

Help & Support

If you have any other concerns, please contact us with the development name and any further details.

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.

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.

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.

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 on homes following recent legislation changes, but your legal representative will confirm this in relation to any property you are looking to purchase.

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.

The Management Provider will manage the process of you selling your home on our behalf.

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.

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.

You can buy more shares in your home - 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, meaning there is a maximum equity available to purchase.  The Sales team can advise if the home you are interested in has this restriction.

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.

The Shared Ownership scheme is simple, you buy an initial share of between 25% and 75% of the home's 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.

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 mortgage broker to assess what share you can buy that is both affordable and sustainable.

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.

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.

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.