Shared ownership is a form of low-cost home ownership that combines renting with buying.
It is aimed at people who would like to own their own home but can't presently buy outright. The purchaser owns a share of the home (25/50/75 per cent) and then rents the remaining part from Dunedin Canmore.
The purchaser is responsible for the full cost of contents insurance, legal fees, maintenance and repairs.
The purchaser arranges a normal mortgage for the portion of the property they will buy through a bank or building society or have sufficient capital to purchase the share outright. The remaining portion of the house is rented from us.
A sharing owner is responsible for paying an occupancy charge to us for the portion we retain.
Applicants are advised to seek the advice and assistance of a solicitor should they decide to purchase a share in a property.
Who can apply to be a sharing owner?
In general, applicants will be considered if they meet one or more of these criteria:
- applicants should have independent means to allow them to pay the occupancy charge without immediate recourse to Housing Benefit
- applicants should normally be economically active
- applicants should be on gross household incomes not normally higher than £39,000 per year
- applicants without regular income, but who have access to capital funds, may still be considered
- particular consideration will be given to ex-service personnel and their families.
- current tenants of either a local authority or housing association within the Lothians or are on the waiting list for housing
- household has a local connection, either through work, family or cultural networks
- living in private rented housing
- living with family, friends or relatives
- lacking security of tenure in their current home.
How much will it cost?
As with any house purchase, there are initial charges which can include legal fees to solicitors and costs relating to obtaining a mortgage. These are payable upon the initial purchase, but also if you decide to purchase further share(s).
Could I own the property outright?
Once a year you will have the option to buy a 25 per cent share(s) up to 100% ownership - although there is no obligation to do so.
For example, you buy 25 per cent initially, then the next year you can buy 75 per cent, which means you'll own the property. This is called staircasing.
Change to buildings insurance for Sharing Owners
Building insurance for sharing owners is provided by Zurich Municiple
For standard claims the stated excess on the policy is £500 however while we negotiate the excess with our insurer Dunedin Canmore will reimburse £400 to you which keeps the excess for you at £100.
You can view the policy here.
Making a claim
If you need to make a claim please use the claim form.
Please return this to Dunedin Canmore and we will forward this on to our insurers. Payment of the additional excess will be made once our insurers confirm they have accepted liability for the claim.