Shared Ownership

Banner Jones Solicitors are expert Shared Ownership solicitors.

Shared Ownership is an affordable way to part buy and part rent your home. It is partly financed by a Government grant, so cheaper than buying a property outright and the combined monthly rent and mortgage payments are lower than the monthly cost of a full mortgage. You can buy as little as 25% or as much as 75% with an option to buy further shares when you can afford to do so. Although you may not own the property outright initially, you are a shared owner with the normal rights and responsibilities of a full owner occupier. The Banner Jones conveyancing team in Chesterfield, Sheffield, Dronfield and Mansfield, have lots of experience with Shared Ownership properties so let us guide you every step of the way.

The process of buying a house

An investor has pulled out causing our chain to collapse, what can we do?

The current market and national economy is so uncertain that people may choose to wait and indeed remove their risk by pulling out of the transaction. Although there is no reason not to carry on as normal in terms of the legal process we have to consider slower transaction times or hesitant investors or buyers.

At what point in the process is it legally binding?

You can withdraw from a sale or purchase up until the point contracts have been exchanged. Any deposits paid after exchange of contract will then by non-refundable. After contracts are exchanged you are then responsible for the property you are buying and should arrange suitable insurance from this date.

Do I have to arrange buildings insurance?

No. That is done by the landlord/housing association and part of the rent payable reimburses the cost of the buildings insurance.

How does Shared Ownership work?

A monthly rent is paid to the landlord in respect of the share you have not purchased. For the percentage share you buy you will normally require a mortgage. Certain lenders do not accept Shared Ownership property but the housing association can normally put you in contact with a mortgage adviser who is used to dealing with this type of application.

How long are local searches valid for?

A local authority search completed for a house purchase is valid for 3 months.

How long does the conveyancing process take on average?

We usually say 8-12 weeks for an average sale or purchase. Queries and concerns can often come out of the local authority searches which need further investigation and sometimes this leads to re-approval from the Mortgage lender. This can add further time into the process.

What are the initial costs I will have to pay?

Owning a home can be expensive and you will need to consider things such as re-decoration, utility bills, fittings and furniture and insurance for the contents of your home.

Other costs you must budget for monthly include mortgage repayments, rent on the proportion of the share you do not own, council tax and any service charge (if applicable).

There are also some initial costs involved in buying a Shared Ownership property just as there is when you buy on the open market and these will need to be paid from your own savings. These include:

Stamp Duty - The calculations as to whether you have to pay Stamp Duty is more complicated with a Shared Ownership property. You can be exempt from paying this if you purchase up to 80% share in the equity. However, if the value of the percentage share you are buying is over £125,000.00 then you will have to pay Stamp Duty. We would discuss the options regarding Stamp Duty with you as part of the transaction.
Deposit – if required.
Survey/Valuation – This is essentially if you are purchasing a property with a mortgage and is normally arranged through your mortgage broker or lender.
Legal fees – This covers the work we do to complete the transaction and it will always be a fixed fee. Contact us for a free quote.

What happens if the house I am buying has quarantined owners in it?

Unfortunately, in this situation the seller will not be able to give vacant possession, which will lead to completion delays. As a preventative measure, as per question 1, we can offer to exchange contracts and complete on the same day, which ensures that contracts are only exchanged if all parties in the chain are able to move on that day, thus reducing the risk to all parties. This can be more stressful so we ask that clients be sensible and accommodating of the situation.

What happens if we can’t produce certificates for work we’ve had done on the house we’re selling?

You can indemnify the work by taking out an insurance policy. This means that you can not be held liable for any future fault on the work that was done. We can arrange this for you

What is staircasing?

In the future you can gradually buy a bigger share in the house and in most schemes you can eventually own it outright. There is no obligation to purchase a larger share but the scheme is designed to be flexible should your circumstances change.

Initially you contact the housing association who will arrange a valuation and will offer you a price to purchase the extra shares. Any improvements you have made to the property will be disregarded in calculating the price of the further shares. Once you have completed the purchase your rent is reduced accordingly but your mortgage payments may increase.

What is Stamp Duty and how much will I have to pay?

Stamp Duty is a tax levied by HM Government on a transfer of property. For residential single property ownership this tax is calculated at 5% for the portion of the property value between £250,001 and £925,000, 10% for the portion between £925,001 and £1,500,000 and 12% for the portion £1,500,001 and over. Duty may also be chargeable on any rental charge (leases only) - this affects both residential and commercial leases where different thresholds are applied. There are different rates for First time buyers and "second homes/buy to let".

See our stamp duty page for more details

What is the difference between Joint Tenants and Tenants in Common?

Tenants is Common is where two or more people are entitled to the proceeds of sale in distinct shares - on the death of one, his/her interest will not pass to the survivor(s) but will be part of his/her estate. Joint Tenants are on the other hand 50/50 Co-owners of land - when one of them dies, his/her rights of ownership pass to the survivor(s).

Who qualifies for Shared Ownership?

To qualify for Shared Ownership you must be in employment and be in a position to raise a mortgage for the part you are buying. The amount you must be earning will vary depending on property prices and where you want to live. However, if you have sufficient income to enable you to purchase a home outright then you will not qualify. Priority is normally given to those in need and those on housing waiting lists but each individual housing association has their own requirements.

Will I have to pay a deposit?

This depends on your finances, but normally yes. If for example you are renting 50% with a mortgage of 45% then a 5% deposit will be payable.

Will it be leasehold or freehold?

Whether you buy a house or flat your interest in the property will be leasehold because the housing association owns the property and is the landlord. They will grant a Lease, typically 99 or 125 years, and you will be subject to the terms of the Lease. Banner Jones would provide you with a full report of your rights and responsibilities under the terms of the Lease during the transaction.

Will there be service charges?

Not always. If the property’s communal areas are maintained by the housing association then yes there will be a service charge. Some Shared Ownership properties do not have a service charge.

See all frequently asked questions for Shared Ownership

I received excellent service for the purchase of my house
Mrs S,Sheffield

Thank you for my Dad's house sale. We were really impressed with the service you gave. The whole process was fast, we never had to chase and you kept us up to date with everything very quickly.
Mrs B, Matlock

Excellent, speedy, friendly service. Assisted with all my queries and very helpful regarding issues caused by the bank holding the money.
Mrs S, Chesterfield

Will always use Banner Jones for their personal approach, friendliness, expertise and to give you satisfaction
Mrs T, Chesterfield

House sale was completed without any problems and very professional.
Mr & Mrs S, Old Whittington

Banner Jones was friendly, helpful, efficient and considerate. My cousin recommended them to me and I will not hesitate to use any of the services they offer when the need arises.
Mrs M, Whittington

Buying a House

Good service.
Mr & Mrs W, Danesmoor

Everything went smoothly, no trouble at all. Thank you.
Mrs H, Mansfield

The service I received couldn't have been better!
Mrs C, Chesterfield

Karen Askew and Nathan Rodgers did a fantastic job for us. Professional advice, speedy service and competitive pricing. Very happy.
Mr G, Derby

The service was excellent. We were particularly impressed by the swift responses and communication by email. A far superior service than our previous moving experience.
Mr P, Eastbourne

We’re really grateful for the work you did for us. 10 out of 10!
Mr & Mrs S, Bridlington

Very easy to make appointments, very personal service from all people at Banner Jones, my solicitor was very friendly and put me at ease. If I needed a solicitor again, Banner Jones would be the first on my list.
Mr C, Dronfield

Brilliant service, kept well informed all the way through the process. Would definitely recommend.
Miss H, Nottinghamshire

Cannot fault the service, efficient, prompt and cautious. Matters explained very well and clearly. Pleasantly surprised.
Mr & Mrs D, Mansfield

Service provided was excellent. All the staff were very helpful, considerate and professional. I would highly recommend to friends and family.
Mr W, Nottinghamshire

Josh was brilliant. Many thanks to you all.
D Gamble, Mansfield

Exceptional value for money compared to other solicitors. Direct contact with the solicitor and his assistant. Responses were quick. A very good service and would definitely recommend.
Mrs W, Mansfield

Used the firm before and will use again. Can't think of a better recommendation!
Mrs A, Chesterfield

Conveyancing services

We recently dealt with Jade Cody in relation to the sale of our home and purchase of new property. The service we received was outstanding. Any questions we had were answered promptly and the whole process was made seem less and as stress free as possible by Jade. At no point did we feel that they were too busy to deal with our matters and we were kept up to date regularly. We wouldn’t hesitate to recommend Banner Jones for conveyancing services.

(Conveyancing in Sheffield)
Mrs C, Sheffield

Fantastic service – Professional and personable

10/10 service. I always feel looked after when dealing with Mark Bilton and Dawn Wilford. They provide a fantastic service for a very reasonable price. They are always willing to help and are knowledgeable in all areas. I have recommended Mark and Dawn to many of my friends and colleagues and I have only received great feedback.

(conveyancing Solicitors in Mansfield)
Mr M, Mansfield

Efficient and helpful for the purchase of my first home

I used Jade Cody as my solicitor to purchase my first home. I received timely responses to all of my enquiries and was kept up to date on all matters. I would happily recommend Jade and the team at Banner Jones to people purchasing a property!

(Conveyancing Solicitors Sheffield)
Mrs L, Sheffield

Many thanks again to you for all your help with the purchase, you made it very stress free which was very much appreciated!

(Conveyancing Solicitors Sheffield)
Mrs E, Sheffield

Auction Sale

I really do appreciate the efficiency, speed and professionalism with which you have worked. Especially given the sensitive circumstances.

I would have no hesitation in using your services again and indeed recommending you.

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Mrs C, Mansfield

Thank you very much for completing this assignment in the timeframe I requested. I appreciate it very much. You guys have been excellent throughout in your dealings with this. Megan has been professional perfection. I will be using you guys next time (if you'll have me).

(Conveyancing in Sheffield)
Mr C, Sheffield

Thanks Karen and Amber you have all been brilliant through this process!
Mrs H, Leicester

Recommended conveyance service

Cheryl Bradley at Banner Jones Mansfield has carried out conveyance work on 4 properties for me and the whole process has been highly professional.

(Conveyancing in Mansfield)
Mrs M, Mansfield

First time property investor

Tim Barley and his team, have been excellent throughout. The entire process has gone seamlessly. We were particularly impressed with how Banner Jones gave us a weekly update and communicated with our estate agents and mortgage broker. We never felt out the loop and we didn't have to chase for information. There is no doubt that we will use Tim at Banner Jones for our next investment. We have already recommended Banner Jones (Tim) to another investor for their next purchase.

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Mr & Mrs T, Sheffield

Relocation

Banner Jones provided an excellent service during our relocation. They always responded to any request and were polite and courteous at all times. Moving home is stressful but relocating is even more stressful. Banner Jones made the relocation work for us. Thank You.

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Mrs M, Mansfield

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Shared Ownership

Talk to Banner Jones

The process of buying a house

Frequently Asked Questions

Accreditations

Get in touch today

Shared Ownership

Talk to Banner Jones

The process of buying a house

Frequently Asked Questions

Accreditations

Get in touch today

Talk to our team