SHARED OWNERSHIP FOR REGISTERED PROVIDERS
LOCAL | EFFICIENT | INDEPENDENT
Trinity Rose is one of the only local and independent companies to offer shared ownership. Utilising our experience and local network, we work hand in hand with Registered Providers to ensure that shared ownership transactions are dealt with seamlessly. Along with our sister company ‘Charters Financial Services’ we ensure that every facet of the process is dealt with quickly and efficiently, from enquiry to completion.
Our USP is that we can deal with the whole process internally, providing an effective ‘one-stop-shop’ for all Registered Providers, including financial qualification of prospective buyers via our mortgage hub in Chandlers Ford.
Read more about our valuations service for shared ownership properties, then contact us about how we can help you.
The shared ownership scheme has led to many thousands of people getting that important first step onto the housing ladder by buying a shared ownership home through a Registered Provider via Help to Buy and affordable housing provision.
Since the scheme differs from a traditional home purchase, it’s important to engage an expert valuer who has experience of the shared ownership process to assess the exact market value of the property.
Trinity Rose Chartered Surveyors provides a professional RICS valuation service to prospective purchasers of shared ownership properties, to those considering increasing their share in their home through ‘staircasing’ and to homeowners wishing to sell their property.
Shared ownership valuations to RICS Valuation Standards (Red Book)
As RICS certified surveyors and valuers, we have vast expertise in carrying out valuations for prospective purchasers and, as more people turn to shared ownership and Help to Buy schemes, our valuers regularly conduct specialist valuations for properties purchased from Registered Providers, housing associations and residential developers.
It’s important to appoint an independent RICS Registered Valuer with local knowledge and experience of shared ownership schemes to ensure the inspection and subsequent valuation report reflect the exact market value of the property.
These standards apply to all shared ownership valuations, including those requested by prospective purchasers of shared ownership scheme properties, owners who want to sell or pay off part of their loan and owners who want to purchase more shares in their home via ‘staircasing’.
Our expert team of independent RICS-registered Valuers carry out all valuations in strict accordance with the RICS ‘Red Book’, which is a set of professional and ethical standards that all valuations must adhere to.
If you’d like to talk to us about conducting a shared ownership valuation for a property you’d like to buy or sell, please get in touch.
Here are some reasons to consider buying shared ownership:
- The rent that the Registered Provider charges you is below the open market and is usually charged at 2.75% of the property value per annum.
- Latest Government guidelines mean that you can start with a share as low as 10%.
- Your deposit can be low as 5%, so if you were buying a one bedroom flat at £180,000, your deposit could be as low as £900.
- No stamp duty to pay initially.
- Shared ownership is incorporated into many prime developments, so
you can live in a sought after area.
Please note the following criteria which will need to be confirmed by the relevant Registered Provider:
- You must be at least 18 years old
- Your household income must be less than £80,000 (£90,000 in London)
- You cannot purchase a house on the usual open market route
- You are not in mortgage or rent arrears
- You have a good credit rating and can afford the payments and costs
associated with a house purchase - You must have money to cover the cost of buying a home
- You will need access to a deposit.
Why Trinity Rose?
- Specialist shared ownership valuations conducted by independent RICS-registered valuers
- Values based on 100% market value of the shared ownership property
- Suitable for purchasers, vendors and for those wishing to sell or increase their share ownership through staircasing
- Requires inspection resulting in a detailed report covering the property, location, condition, market commentary, comparable evidence and an assessment of market value
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FAQs
How do you value my shared ownership property?
We carry out valuations of shared ownership properties in accordance with RICS Valuation Standards (Red Book) and each valuation is based on 100% market value of the property. You can read more about Trinity Rose Chartered Surveyors’ Shared Ownership Valuations here.
Can you work alongside third-party consultants for an affordable housing project?
Trinity Rose Chartered Surveyors regularly collaborates with Registered Providers, their developers, solicitors and consultants and we can offer our architectural services as ad hoc resources or a complete package for Registered Providers as required. You can read more about what our architectural services for registered providers include here.
Why buy a shared ownership property?
Shared ownership is a great way to take your first steps onto the property ladder. If you have ever dreamed of owning your own home, but have been held back by your income or lack of a deposit (which is usually the most expensive part of a property purchase) then this route could be for you. Here are some reasons to consider buying shared ownership:
- The rent that the registered provider charges you is below the open market and is usually charged at 2.75% of the property value per annum
- Latest government guidelines mean that you can start with a share as low as 10%
- Your deposit can be as low as 5%, so if you were buying a one bedroom flat at £180,000, your deposit could be as low as £900
- No stamp duty to pay initially
- Shared ownership is incorporated into many prime developments, so you can live in a sought after area.
Can I buy any house I want through shared ownership?
No. Shared ownership schemes are only available on specific properties which are usually new-builds or existing shared ownership properties which are being resold. Some properties in the scheme are in a ‘designated protected area’ and only available to people with a connection to the area.
Can I make changes to my home?
It is usually fine to decorate your home however you like but you should check your lease before undertaking major renovations.
Who is responsible for repairs to shared ownership homes?
If anything needs repairing then it’s usually your responsibility. The housing association will look after communal areas but you will probably have to pay a service charge for this.
How does shared ownership work?
You will buy a share of a property: usually 25% – 75% in England although it can be as little as 10% in some cases. You will then rent the remaining share of the property from the registered provider/housing association.
Who qualifies for shared ownership scheme?
You may be able to buy a home through shared ownership if:
- your household earns £80,000 a year or less (£90,000 a year or less in London)
- AND you cannot afford all of the deposit and mortgage payments for a home that meets your needs
You must also be one of the following:
- a first-time buyer
- a previous homeowner who cannot afford to buy one now
- a homeowner who wants to move but cannot afford a new home which is suitable for your needs
- forming a new household e.g. after a divorce
- a current shared owner who wants to move
How do I apply for a shared ownership scheme?
To apply for the scheme you must register with the Help to Buy agent in the area you want to live.
What is Shared Ownership?
Shared ownership is a scheme that enables people who don’t own their own home to purchase a share in a brand new or resale property.
Simply put, you purchase a percentage share of your chosen property (10% minimum) and pay rent to the Registered Provider on the remaining amount. Purchasing a property using this method means that the amount of money you need for a deposit is much less due to the fact that you only need a mortgage for the percentage amount you are buying. Ergo, with a smaller mortgage this also means that you need a much smaller income to be able to buy a shared ownership property, which puts home ownership within reach for many people.
Once you have moved into your new home, you can also buy additional shares in the property at increments as low as 1% with many Registered Providers allowing you to buy right up to 100%. This process is called ‘Staircasing’, enabling you eventually own your own home outright. The more shares you buy, the less rent you pay!
How does shared ownership work?
Simply put, you purchase a percentage share of your chosen property (10% minimum but usually between 25% and 75%) and pay rent to the registered provider on the remaining amount. Purchasing a property using this method means that the amount of money you need for a deposit is much less due to the fact that you only need a mortgage for the percentage amount you are buying. Ergo, with a smaller mortgage this also means that you need a much smaller income to be able to buy a shared ownership property, which puts home ownership within reach for many people.
Once you have moved into your new home, you can also buy additional shares in the property at increments as low as 1% with many registered providers allowing you to buy right up to 100%. This process is called ‘staircasing’, enabling you to eventually own your own home outright. Also, the more shares you buy, the less rent you pay!
How big a deposit do I need?
You’ll usually need to put down at least a 5% deposit. However, this is just on the share you are buying, not the whole property price. You will then pay for the rest of your share with a mortgage. Keep in mind that you will also need to pay rent.
How is rent calculated on shared ownership schemes?
The rent you’ll pay depends on a few things including the rate of rent and how big a share you’re renting. E.g. if you buy a 40% share of a £150,000 house, you will pay £60,000 using your deposit and mortgage. This leaves £90,000 worth of the home in the housing association’s ownership for you to rent.
If the housing association charges rent at 2.75% on that £90,000, you will need to pay £2,475 in rent over the year (£206.25 per month). Keep in mind that you will also need to meet your mortgage repayments.
Can I be evicted from my shared ownership home?
You will own part of the home so the housing association cannot evict you in the same way as a 100% rented property. However, if you fail to meet your rental payments they may take you to court and even force you to sell your share of the home.
What are the advantages and disadvantages of shared ownership?
Shared ownership can seem like the ideal solution but it’s important to look at the advantages and disadvantages before leaping in:
Advantages of shared ownership:
- You may be able to get onto the property ladder sooner than if you were buying outright
- You can buy further shares of your property in due course, meaning you own more/all of your home
- The scheme may be less expensive than renting (but this is not necessarily the case)
- You can sell a shared ownership property whenever you like (you’re not ‘locked in’) and you will benefit from any value increase on your share
Disadvantages of shared ownership:
- Your choice of properties is limited to those in the scheme
- Purchasing further shares of your property can be difficult if property value increases
- It’s likely you’ll have to pay a service charge
- It can be difficult to get a shared ownership mortgage
“I recently used Trinity for a survey on our to-be property. Yasmin was prompt in responding and the surveyor rang me to give a verbal report on the day. The price was in line with other quotes I had but I chose Trinity Rose because of Yasmin – she was polite and friendly. Many thanks”.
Blue Boy
Trinity House, 123 Winchester Road, Chandlers Ford, Hampshire SO53 2DR
t: 01962 880426
Trinity House, 123 Winchester Road, Chandlers Ford, Hampshire SO53 2DR
t: 01962 888900
Trinity House, 123 Winchester Road, Chandlers Ford, Hampshire SO53 2DR
t: 02382 002500
