The costs of shared ownership conveyancing are similar to traditional purchases but may include additional fees. Here’s a breakdown:
1. Legal Fees
- Typically range from £800 to £1,500, depending on the complexity of the transaction.
2. Disbursements
- Property Searches: £250 to £500.
- Land Registry Fees: £40 to £910, depending on the property value.
- Stamp Duty: You can choose to pay stamp duty on the full market value upfront or just your share (with additional payments if you staircase later).
3. Mortgage Fees
- Arrangement Fee: £0 to £2,000.
- Valuation Fee: £150 to £500.
4. Housing Association Fees
- Reservation Fee: £500 to £1,000 (refundable on completion).
- Administration Fee: £250 to £500.
Legal Requirements for Shared Ownership
Shared ownership comes with specific legal requirements that differ from traditional purchases. Here’s what you need to know:
1. Leasehold Ownership
- Shared ownership properties are usually leasehold, meaning you own the property for a set period (often 99 to 125 years).
- Your solicitor will review the lease to ensure it’s fair and complies with shared ownership rules.
2. Staircasing
- The lease will outline the terms for increasing your share (staircasing), including:
- Minimum share you can purchase (usually 10%).
- Valuation process and costs.
3. Resale Restrictions
- If you decide to sell, the housing association usually has the first right to buy back your share.
- Your solicitor will explain the resale process and any restrictions.
4. Rent and Service Charges
- You’ll pay rent on the share you don’t own, as well as service charges for maintenance and repairs.
- Your solicitor will ensure these costs are clearly outlined in the lease.
Tips for a Smooth Shared Ownership Conveyancing Process
Here are some practical tips to help you navigate shared ownership conveyancing:
1. Choose an Experienced Solicitor
- Opt for a solicitor with expertise in shared ownership and leasehold properties.
2. Budget for Additional Costs
- Factor in all fees, including mortgage costs, housing association fees, and stamp duty.
3. Read the Lease Carefully
- Ensure you understand the terms, especially around staircasing, resale, and service charges.
4. Stay Organised
- Provide all required documents to your solicitor promptly to avoid delays.
5. Ask Questions
- Don’t hesitate to ask your solicitor or housing association for clarification on any aspect of the process.
FAQs About Shared Ownership Conveyancing
1. Can I staircase to 100% ownership?
Yes, in most cases, you can staircase to full ownership, but the process and costs vary depending on the lease.
2. Do I pay stamp duty on shared ownership?
You can choose to pay stamp duty on the full market value upfront or just your share (with additional payments if you staircase later).
3. Can I sell my shared ownership property?
Yes, but the housing association usually has the first right to buy back your share.
4. Is shared ownership only for first-time buyers?
No, but priority is often given to first-time buyers, key workers, and those with lower incomes.
Conclusion
Shared ownership is a fantastic way to step onto the property ladder, but it comes with its own set of legal complexities. Understanding the shared ownership conveyancing process, costs, and legal requirements is essential to ensuring a smooth and successful transaction.
By working with an experienced solicitor, staying organised, and asking the right questions, you can navigate the shared ownership journey with confidence. Ready to take the next step? Contact a trusted conveyancing solicitor today and start your shared ownership journey.
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- Shared ownership process explained
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Need help with your shared ownership purchase? Get in touch with our expert conveyancing team today!
