Shared Ownership: A Step by Step Guide
10 December 2020
Let’s start at the beginning
Shared Ownership is a government-backed scheme which allows first-time buyers – or those who do not currently own a property – the opportunity to purchase a home at a more affordable price.
Shared Ownership works by enabling a homebuyer to buy a share of a property. This share represents how much of the property the buyer owns. A discounted rent is then paid on the share of the property not purchased.
Here are the six steps to purchasing your first, or next, home:
Let’s say you’ve found ‘the one’ and made an application to purchase it. Assuming you meet the eligibility criteria, you’ll be invited to a financial assessment; the purpose of which is to ascertain what share of the property you’re able to afford. After this meeting, you’ll understand the deposit required and monthly rent payable, plus, any service charges which may apply. Once you are signed off by the IFA (Independent Financial Advisor) you will be ready to pay your reservation fee and we will take the property off of the market.
You’ll now need to find a suitable mortgage lender and submit an application. It’s important to do your research here and take good advice. You have the option to apply to the lender directly or work with an IFA, either our preferred firm or your own.
The next step is to instruct a solicitor who will handle the legalities on your behalf. Again, it’s important to do your research. Once step 1 is complete, after your financial assessment, a ‘Memorandum of Sale’ will be issued which summarises the details of your proposed purchase. Your lender will now be looking to book in a mortgage valuation too, which will then lead to your mortgage offer being issued.
Once you have your mortgage offer, your searches and your solicitor is happy that all enquiries have been satisfied, it’s time to exchange contracts. Once this is done, you are legally bound to complete on the purchase. It’s at this point that your completion date will be confirmed, unless of course you are buying ‘off plan’ in which case completion will be on notice.
When the completion date arrives, your mortgage lender will release the money required to buy your property to your solicitor. Your solicitor will then pass this money on to the solicitor of the housing provider.
The only thing left to do is collect your keys. Congratulations, you’re now a homeowner!
Want to get on the property ladder with Shared Ownership?
We at Legal & General Affordable Homes offer an array of top quality, contemporary properties across England. From studio apartments to large detached houses, we aim to provide something for everyone.
Start your search today by viewing our current properties available. Or, head to our social media profiles on Instagram and Facebook(@legalandgeneralaffordable) to find out more about Shared Ownership. #LandGAH