Navigating Shared Ownership Conveyancing: A Step-by-Step Guide
- Ola Leslie Solicitors
Purchasing a shared ownership property can be an exciting first step toward home ownership. However, the legal aspects involved in the conveyancing process can seem complex. Olaleslie Solicitor, a solicitor firm with extensive experience in shared ownership conveyancing is here to guide you through the journey. This article provides a comprehensive breakdown of the key stages involved, empowering you to navigate shared ownership conveyancing confidently.
Understanding Shared Ownership Conveyancing
Shared ownership conveyancing refers to the legal process of acquiring a share in a property under a shared ownership scheme. This involves a combination of purchasing a portion of the property and paying rent on the remaining share owned by the housing association or developer.
The Shared Ownership Conveyancing Process:
Step 1: Securing a Mortgage Agreement in Principle
The initial step involves obtaining a Mortgage Agreement in Principle, which estimates the maximum loan amount a lender is willing to offer based on your financial situation. This agreement also helps determine the property types within your budget. Consider seeking assistance from a qualified mortgage broker or independent financial advisor (IFA) specializing in shared ownership mortgages. Their expertise can help secure the most favorable terms for your specific needs.
Step 2: Finding Your Ideal Shared Ownership Property
Once you have a budget and Agreement in Principle, you can begin searching for your perfect shared-ownership home. Utilize reputable shared ownership providers or online resources to browse listings and explore local area information.
Step 3: Reserving Your Chosen Property
Upon finding a suitable property, you can reserve it by paying a reservation fee. This fee is typically deducted from the purchase price of your share upon completion. A sales representative can provide details regarding the reservation fee amount.
Step 4: Engaging a Shared Ownership Solicitor
After mortgage approval, engaging a solicitor experienced in shared ownership conveyancing is crucial. They will handle various legal checks on the property, the shared ownership scheme, and the lease agreement. These checks may involve searches with local authorities and environmental agencies to identify any potential issues.
Additionally, your solicitor will advise you on the process of increasing your ownership share in the future (known as staircasing) and meticulously review the lease terms, focusing on specific clauses or restrictive covenants. Due to the complexities involved, this stage might take slightly longer than traditional conveyancing.
Step 5: Contract Exchange
Once all legal checks are complete and your lender and solicitor are satisfied, a date is set for exchanging contracts. Your solicitor will prepare the final contracts for your review and signature. If you agree to the terms, you and the seller will sign copies, legally binding both parties to the sale/purchase agreement. You will also receive a copy of the lease to sign, outlining the percentage share you own and the rental payments applicable to the remaining portion. This stage typically coincides with paying your deposit (usually starting at 5% of your share) and agreeing on a completion date with the developer or housing association.
Step 6: Completion
Completion signifies the culmination of the acquisition process and the exciting moment you officially become a homeowner! On completion day, your solicitor will transfer your funds to the seller’s solicitor, and you will settle any Outstanding costs, such as stamp duty (if applicable) and your solicitor’s fees. It is the time to pick up the keys to your brand-new shared-ownership home!
