Shared Ownership
Shared ownership is where a resident may own either 25%, 50% or 75% share of their home, with the remaining percentage being owned by the housing association and rented to the sharing owner.
Staircasing
As a sharing owner you can take advantage of a unique option known as staircasing. Following the first anniversary of your initial investment you can buy additional shares in the property until you achieve 100% ownership of the property. Only one staircasing transaction per year is allowed. Each time you increase your share your rent will be reduced on the remaining portion owned by the Association.
A valuation of the property will be determined by the District Valuer or other such other professionally qualified valuer. The cost of this valuation will be met by you. You may of course need to increase your mortgage to cover your additional share. The Association and sharing owner will be responsible for their own legal costs.
Sales
If you as a sharing owner wish to sell, this can be effected at any time; however you must let us know of your decision. We will acknowledge your request and provide you with the relevant information for the sale to be progressed.
Shared Ownership Occupancy Agreement
The Shared Occupancy Agreement which you enter into on the purchase of your home expires 20 years from the date when you took entry to your property.
If the agreement has not been terminated prior to the 20 years expiry date, the options under the agreement are:
- That the sharing owner has the option to purchase the Association’s share providing that this is agreed at least three months prior to the expiry date.
- If the sharing owner does not wish to purchase the Association’s share, the Association has the option of purchasing the sharing owners share.
- If options 1 & 2 are not exercised, the sharing owner and the Association can jointly sell the whole property.
A further option which is not stated in the Occupancy Agreement and which the Association may consider is for a new Occupancy Agreement to be entered into. As there is no obligation for us to do this, we would require to negotiate with the sharing owner the costs involved with this option.
