Property Buying Guide

What questions should I ask when seriously considering a shared ownership scheme?

Questions you should ask the housing association when considering shared ownership include:

• What is your track record – do you provide references or testimonials?
• Is there a minimum or maximum proportion I can own at the outset and when I come to sell?
• How much deposit will I need?
• Can I choose the property completely by myself?
• Can I get a mortgage? If so, what are the implications?
• How will the amount I own at purchase be recorded and by whom?
• Will I be a freeholder?
• How much will it cost me to get into this scheme?
• How does it work, in simple terms?
• When I purchase, will I need a solicitor? Who pays for that?
• Will I have to sign an agreement?
• Will a survey be needed before I buy and who will pay for that?
• Who pays the stamp duty?
• What about searches?
• What will the monthly payments be and how will this increase according to my share of ownership over time?
• Will there be any other costs for being in the scheme?
• Will my payments be affected by UK interest rates? What else might they be affected by?
• Will I be able to decorate the property however I like? Will the housing association contribute to it if I improve the property?
• Will I be able to make alterations? Will the housing association contribute to it if I improve the property?
• If the housing association wants to sell the property or develop it, what will my rights be and what will be expected of me?
• Can I run my business from home?
• If the housing association is sued or its assets are reclaimed, what position will I be in? Will I be protected?
• Will there be a trust deed or declaration of trust or something similar?
• Will I need some sort of insurance so I can still make my monthly payments if I am ill or made redundant?
• Will I need life insurance to cover me in the event of my death? What will happen to my share of the property at that point?
• Should I make a will?
• How long will I need to own a share of the property before I can sell up and move on?
• How much notice will I need to give before I can sell?
• How will how much I own be calculated when I come to sell? Will my subsequent investments in the property be taken into account?
• What will happen if the value of the property goes down? Who will bear the losses when I sell?
• Will being able to sell depend on the housing association or me finding a buyer, or do I sell to the housing association?
• Who will pay the estate agents' and conveyancing fees when I come to sell?
• If I marry and I want my spouse to become an additional owner, would that be possible? How would I go about it?
• Will I be able to sub-let rooms for extra income? Would all of this income be mine?
• If I want to increase my share in the property how do I do it?
• Who will decide on and pay for repairs and maintenance?
• Who will pay for buildings insurance?
• Are there other costs, such as ground rent or maintenance charges?

You will need a good solicitor to make sure you understand the contract and its implications and lead you through the process.
 
More about shared ownership: 

What is New Build HomeBuy and how does it work?  Who is eligible and what are the selection criteria?  Special features and how to apply  What is involved with shared ownership and who can apply?  How do I increase my share and how much do properties cost?  What rights and responsibilities do I have?  Are there restrictions on resale?  Can I buy with someone? And what about finance and legal issues?  Where do I start and what happens next?   Will shared ownership really enable more first time buyers to buy a home?  Shared Ownership Mortgage basics  Benefits and pitfalls of shared ownership  Shared ownership schemes run by house-builders  The First Time Buyers Initiative/English Partnerships

• Request shared ownership mortgage advice
• Open Market HomeBuy
• New Property Deals with a gifted deposit
• Ask for a quote from a good property solicitor
• Best First Time Buyer Mortgage table

Useful links

www.communities.gov.uk
www.englishpartnerships.co.uk
www.housingcorp.gov.uk
www.direct.gov.uk