Share to Buy Expert Sessions: Your questions about the sales process
Shared Ownership Sales Process
How long does it take to complete the buying process?arrow_downward
The process of buying a new build homes depends on a number of factors, including the length of time required to arrange a mortgage how quickly the solicitors involved can process the sale. Usually it takes around two months from start to finish, however it can take as little as 28 days if everything goes smoothly quickly. However, if you’re buying a home off-plan and building work has yet to be completed on the development, this may lengthen the process.
What percentage of the share do I need to have deposit on?arrow_downward
Your deposit will usually be 5-10% of the price of the share you’re purchasing, not of the full market value of the whole property. For example, if a property costs £500,000 and you purchase a 25% share – equating to £125,000 – a 5% deposit on your share would be £6,250.
Can I choose to put down a larger deposit?arrow_downward
Yes – The minimum deposit is usually around 5% of the share that you are purchasing, but reaching a 10% deposit or higher significantly reduces the interest rate you will be offered on your mortgage.
Can I use the Help to Buy ISA or Llifetime ISA to help pay the deposit on a Shared Ownership home?arrow_downward
Yes – both the Help to Buy ISA and Lifetime ISA can be used to purchase a Shared Ownership home.
Can I negotiate on the percentage price when buying a Shared Ownership home?arrow_downward
Response from Clarion Housing – Shared Ownership homes are independently valued by a Royal Institute of Chartered Surveyors valuer and they determine the price at which we sell our homes. We are therefore unable to accept offers on Shared Ownership homes
What is the minimum share I can buy?arrow_downward
The minimum share you can purchase in a Shared Ownership home is usually 25%. However, certain developments may have slightly higher minimum share requirements, for example 35% or 40%.
If the property is advertised at 40%, can I choose to buy a smaller percentage?arrow_downward
The smallest percentage you can purchase in a Shared Ownership home is usually 25%, however certain developments may have slightly higher minimum percentages, such as 35% or 40%. The percentage advertised is usually the minimum share that can be sold.
How long can I hold a property for after I reserve it?arrow_downward
Response from Clarion Housing – Once you’ve reserved a property, the ball starts rolling and we’ll be asking you to progress matters straight away. You may have a few days cooling off period, please check with the housing association you’re reserving with.
Does the reservation fee get refunded if I don't get accepted for the home?arrow_downward
Response from Clarion Housing – A reservation fee is taken once you’ve passed an initial affordability assessment. This generally means that you can afford to go ahead and the property you are interested in is available.
What kind of admin and legal fees should I expect to pay when purchasing a Shared Ownership home?arrow_downward
This can be subject to considerable variation, however solicitors will always be happy to provide a quotation. Generally, if you budget for around £3,500 then you shouldn’t be too far out.
How much would you advise I save for fees?arrow_downward
On top of your deposit, other fees may be incurred throughout the process such as removal costs, although these can vary greatly. Housing associations recommend that you have between £3,000 and £5,000 available to cover all the fees and costs of moving, including the solicitors and broker fees.
Would I need to register and apply for the government Help to Buy scheme if I want to buy a Shared Ownership home?arrow_downward
You do not currently need be registered with Help to Buy if you’re looking to buy a Shared Ownership home in London. However, if purchasing outside of London, you’ll be required to register with the local Help to Buy agent.
Is there a list of solicitors that deal with Shared Ownership?arrow_downward
Theoretically speaking, any solicitor dealing with property conveyancing should be able to deal with a Shared Ownership property purchase, however it recommended that you use a firm that has experience in this area. You can check out Share to Buy’s Solicitor Panel for the details of specialist Shared Ownership solicitors.