Shared ownership questions

Craigy84

Right here we go..
I'm looking at a property online it's 2 bedroom semi about ten years old being offered for 40% of it with a view to staircase to 100% in the future. I says 40% of freehold (not leasehold) think it's a private vendor selling but through a reputable estate agent..

1) would I be on the deeds if I was to buy on a freehold basis

2) would there be any service charges like if it was and apartment or flat

Any help from someone expert in this area would be greatly appreciated thank you

Dimps_123

Hiya I'm not an expert by any means, however I do own a shared ownership property. If it is the same as mine, you would own 40% of the freehold, the remaining 60% being the housing association (or similar). Along with the mortgage you would also be responsible for the rent to the housing association, which usually includes buildings insurance and potentially an additional service charge. All other costs will be down to you. I found there were only a few mortgage companies that lend on shared ownership - though I'm sure more will be on board as this becomes a more popular way to buy. You will have your own set of deeds - I think (not too sure as I haven't looked at them recently) they will show you own the 40%.


Good thing to remember if you staircase in the future, it will be on the market value of the property at the time and not what you bought it for.


Hope that helps.

Dimps_123

Also, the housing association provided us with a couple of solicitors they usually use that have experience in shared ownership - just to speed things up a bit :-)