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Shared Ownership Conveyancing
The page you are viewing has been created for residential conveyancing practitioners concerning mortgage company specific requirements relating to shared ownership conveyancing. Housing associations, alternative social landlords and house builders sometimes provide schemes under which a mortgagee does not have total ownership of the property and a 3rd party will also have a share or will be a having an interest against the property. In such cases a solicitor is obliged to check with the mortgage company to see if they wish to lend and what their specific legal obligations are.
The CML lenders handbook dictates their requirements (and even reveals to the lawyer if they are prepared to loan monies on shared ownership situations at all). For instance:
| Lender | Policy |
|---|---|
| Birmingham Bank | We do not offer loans on these types of property |
| GE Money | GE Money Home Lending has withdrawn from the UK mortgage market. |
| Leeds Building Society | If the property is being purchased as part of a Shared Ownership Scheme/Shared Equity Loan Scheme at a discount or is subject to Section 106 restrictions you must comply with the Society’s Solicitors Instructions (requirements in respect of Shared Ownership Schemes/Shared Equity Loan Schemes/Section 106 Requirements/properties purchased at a discount) which can be located on the Society’s website at: https://www.leedsbuildingsociety.co.uk/_resources/pdfs/intermediaries-pdfs/intermediaries-forms-pdfs/Shared_Owner_England_Wales.pdf You must also ensure that the documents listed in 14.2.2 are uploaded to the LMS system S.T.A.R.S after completion. |
| Market Harborough Building Society | As per 1.7 |
| Monmouthshire Building Society | Lending Operations Department Monmouthshire Building Society Monmouthshire House John Frost Square Newport NP20 1PX |
| State Bank of India UK | N/A ? we do not lend where one of these schemes exist. |
| Swansea Building Society | 11/12 Cradock Street Swansea SA1 3EW 01792 739100 |
Example Shared Ownership Conveyancing Queries:
- What is the best way to discover if a market value election was made for stamp duty on acquiring a shared ownership property? It was 8 years ago so I don't really want to revert to the conveyancing practitioner now. Can one contact HMRC or can the land registry shed any light on the matter?
- I own 30% of a shared ownership flat. Now I want to staircase the residual 70%. I instructed the valuer recommended by the Association. The report gave the price is £355k. Nevertheless my neighbor has the same size flat and had the same valuer, but his apartment price was £330k only because he needs to sell. Can you offer any tips on how I can achieve my flat price lowered?
- if acquiring a shared ownership apartment what kind of deposit do I require, Five per cent of the share or of total property value?
- I am hoping to buy a shared ownership property. It is not a newproperty, and a re-sale (i.e. not the standard new-build appartment and fresh lease scheme). The remaining lease on the share has only 78 years remaining. Is this an issue?