Shared ownership, leasehold /freehold

Runningmad

Hi.
I understood depending on the development when you got to 100% ownership the leasehold is transferred and you own the freehold. Now I've just read all shared ownership are leasehold only.
Does anyone know about this or have information. As I'm really put off if it is leasehold only. Any views or opinions received with thanks.

[Deleted User]

I think its a question you'd need to ask of any developer of a shared ownership property you was interested in. My understanding is yours, i.e. leasehold until you own 100% but best to ask and read he paperwork very carefully.

HanPop

We bought out the rest of our shared ownership property so we own 100% and then they transferred the freehold to us. You need to read the lease but it was my understanding that this is what normally happens.

davidmcn

Runningmad wrote: »

Now I've just read all shared ownership are leasehold only.

Where have you read it?

bouicca21

Is it a flat or a house?

G_M

davidmcn wrote: »

Where have you read it?

perhaps
https://www.helptobuy.gov.uk/shared-ownership/

With Help to Buy: Shared Ownership you can buy a newly built home or an existing one through resale programmes from housing associations. You’ll need to take out a mortgage to pay for your share of the home’s purchase price, or fund this through your savings. Shared Ownership properties are always leasehold.

eddddy

Runningmad wrote: »

Hi.
I understood depending on the development when you got to 100% ownership the leasehold is transferred and you own the freehold. Now I've just read all shared ownership are leasehold only.
Does anyone know about this or have information. As I'm really put off if it is leasehold only. Any views or opinions received with thanks.

Assuming it's a house (as opposed to a flat), everything you say is potentially correct.

• Whilst you own less than 100%, it is shared ownership, and leasehold.

• After you staircase and own 100%, it is no longer shared ownership, so the freehold can be transferred to you.

But you need to check the details of the specific shared ownership scheme you are interested in, to make sure it works that way.

(And if it's a flat, you can't own the freehold, so even if you own 100%, it will still be leasehold.)

Runningmad

Thank you for the replies.

Yrs it would be a house

I read it yesterday in an article that the government are changing the stair casing to 1% increments. It said all shared ownership are leasehold.

The newest development in our area stated leasehold even when 100% is reached.

I really hope its not the case for all future developments.

kingstreet

Some HAs/RSLs do not offer the freehold when staircasing to 100% on a SO house.

There are no hard and fast rules; so you should check each freeholder's position.

rachel230

If you are buying a house in a new build estate, it may very well be fleecehold rather than true freehold. In other words, deeply embedded in your contract you could have unregulated and ever increasing estate service charges to pay including things like drainage, lighting, road maintenance etc if the council does not adopt the estate (which is becoming more and more common). Also you may well have to pay hefty permission fees for any changes you make to your home.
Read up on fleecehold.
Above all use your own specialist solicitor and NOT one recommended by the house builders no matter what incentives they offer you to do so.
Join the National Leasehold Campaign Facebook group if you need to enquire further.