How long does the Shared Ownership conveyancing process take?
On average conveyancing takes between 8 and 12 weeks. Shared Ownership conveyancing usually takes more than 8 weeks because it involves extra checks.
Your solicitor will need to obtain the housing association’s management pack. This pack contains information about how the freehold for the property is managed including details about ground rent, service charges and buildings insurance. Your solicitor will raise enquiries on your behalf based on this information.
When purchasing a Shared Ownership property, there are certain deadlines to meet. A Shared Ownership valuation expires after 3 months, which means if you do not complete your purchase within that time, you will need to pay for another valuation.
Our solicitors at Davisons understand the deadlines associated with Shared Ownership and we timetable our work so that the conveyancing process is as fast and efficient as possible.
Is Shared Ownership a good idea?
Shared Ownership is a way to get onto the property ladder without overstretching your finances. When you purchase a Shared Ownership property you will not usually pay stamp duty land tax (SDLT). SDLT is only payable when you own 80% or more of a property.
You can buy additional shares in your property (staircase) when you can afford to do so and gradually increase your owned share and reduce your rent. As monthly mortgage payments are generally cheaper than rent, you may find that you have more money in your pocket each month.
There is also greater security with Shared Ownership than when you rent a property. You have security of tenure because your lease is likely to run for 99 or 125 years.
The disadvantages of Shared Ownership are that it can be more difficult to get a mortgage, as some lenders do not offer mortgages for Shared Ownership. An independent mortgage advisor will be able to help you. You also need to factor in the costs of ground rent and service charge.
As Shared Ownership properties are leasehold there are likely to be ‘restricted covenants’ in the lease. This means you may not be able to keep pets or make certain alterations to your property.