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.You will also need a shared ownership mortgage, so seek mortgage advice. Identify your local HomeBuy Agent.
More about shared ownership:
What is New Build HomeBuy and how does it work? l Who is eligible and what are the selection criteria? l Special features and how to apply l What is involved with shared ownership and who can apply? l How do I increase my share and how much do properties cost? l What rights and responsibilities do I have? l Are there restrictions on resale? l Can I buy with someone? And what about finance and legal issues? l Where do I start and what happens next? l Will shared ownership really enable more first time buyers to buy a home? l Shared Ownership Mortgage basics l Benefits and pitfalls of shared ownership l Shared ownership schemes run by house-builders l The First Time Buyers Initiative/English Partnerships
Useful links
www.communities.gov.uk
www.englishpartnerships.co.uk
www.homesandcommunities.co.uk
www.direct.gov.uk