What is Shared Ownership?
How does Shared Ownership work?
Who can apply?
How much will it cost?
Can I ever own the property outright?
Can I sell the property?
How can I find out more?
Shared Owners Handbook
Shared Ownership is a housing option offered by Dunedin Canmore Housing Ltd. It is a form of low cost home ownership that combines renting with buying and is aimed at people who would like to own their own home, but cannot afford the full cost of buying a property outright on the open market.
HOW DOES SHARED OWNERSHIP WORK?
Quite simply the purchaser buys a proportion of the property, which is sold in 25% shares or "tranches", the minimum share is 25%. The purchaser arranges a normal mortgage for the portion of the property that they will buy through a bank or building society. The remaining portion of the house is rented from the Association. The Sharing Owner is responsible for paying an Occupancy Charge to the Association in respect of the portion the Association retains.
In general, applicants will be considered subject to meeting a combination of the following criteria:
They are current tenants of either a Local Authority or Housing Association within the Lothian’s, or are on the waiting list for housing.
Their household has a local connection, either through work, family or cultural networks.
Applicants should have independent means enabling them to pay rent without immediate recourse to Housing Benefit.
Applicants should normally be economically active.
Applicants should be on gross household incomes, not normally higher than £36,000 per year (this will be reviewed annually)
Applicants without regular income - but who have access to capital funds - will not be discounted.
Applicants with net disposable incomes restricted as a consequence of unavoidable deductions - where these can be defined.
Particular consideration will be given to ex-service personnel and their families.
In the allocation of Shared Ownership properties, preference will be given to:
Those living in private rented housing.
Those living with family, friends or relatives.
Those lacking security of tenure in their current home.
Those either currently occupying or holding positions on waiting lists in respect of Council or Housing Association property.
As with any house purchase, there are initial charges. These include; legal fees to solicitors, valuation fees and, in some cases, a mortgage guaranteed premium. These are payable upon the initial purchase, but also if you decide to purchase further share(s). Sharing Owners are responsible for the repair and maintenance of their home.
Further costs include:
a) An annual management charge which includes property insurance
b) A charge for services which includes landscape maintenance and cleaning of common areas.
Please note that these costs are likely to be included within the monthly Occupancy Charge.
Depending on your financial circumstances, once a year, you have the option to purchase further 25% share(s) up to 100% ownership, although there is no obligation to do so. For example, you buy 25% initially, then the next year you can buy 75%, thereby owning the property outright. This is called staircasing.
An important point to note, is that if leaving, you must sell the whole of your ownership, whatever percentage that is.
You may sell the property you partially own at any time provided that the Association has been informed beforehand. If you wish to terminate your occupancy of the property three options exist, in each case you gain a proportionate share of any profits from the sale;
With the approval of the Association, the whole property is sold on the open market, or
The Association, at its own discretion has the option of buying back the property, or
You may, with the approval of the Association, sell your share to a household wishing to become a sharing owner.
Your rights as a sharing owner and the rights of the Association are laid out in an Occupancy Agreement, a legal document signed by both parties.
The Association will do what it can to help owners who face unforeseen financial difficulties. Housing Benefit may be available to cover the cost of the rented portion of the property should your income fall to levels at which you are having difficulty making regular payments. However, if you default on payment of rent or mortgage, then you risk losing your home.
Although the Association will consider applications from any household meeting its criteria, preference will be given to those applicants who are currently tenants of a Housing Association or Local Authority or who hold positions on a Local Authority Housing Association waiting list, members of armed forces or veterans who have left the forces within the past year or widows, widowers or other partners of service personnel killed in action.
Applicants are strongly advised to seek the advice and assistance of a solicitor should they decide to purchase a share in a property.
Thank you for your interest in Dunedin Canmore Housing Ltd and should you have any further enquiries about shared ownership, including how to apply, please do not hesitate to contact our Customer Services Team on 0131 478 8888 who will be able to direct your call, or alternatively email email@example.com.
The information contained on this page does not constitute an offer and is correct as at the time of distribution.