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Shared Ownership Conveyancing
This page was built for residential lawyers concerning mortgage company specific instructions relating to shared ownership conveyancing. Non-profit making legal entities, other social landlords and developers sometimes provide schemes under which a mortgagee will not have outright proprietorship of the property and a further party will also own a share or will be a registering a charge against the property. In such circumstances the conveyancing lawyer must check with the lending bank to be sure whether they will lend and what their requirements are.
Particular mortgage companies have alternative conditions. Some lenders indicate to the solicitor if they are prepared to lend on shared ownership circumstances at all. This is reflected by the examples below:
| Lender | Policy |
|---|---|
| Birmingham Midshires | We do not support this lending. |
| Danske Bank | The only scheme acceptable to us is a Help to Buy: Equity Loan scheme in accordance with the then-applicable Government scheme rules for England and Wales. We do not lend on a shared ownership basis. |
| Darlington Building Society | Commercial Lending Department, Principal Office |
| Lloyds | For contact, see the mortgage offer for address and fax number. If the property is being purchased under an Affordable Housing scheme, our requirements are covered in the Affordable Housing Guidance Notes for Conveyancers. The Notes are in the process of being updated, however, in the interim please note the following in relation to Section 4 - Shared Equity Schemes. From 16th January 2023 we will only lend on Affordable Housing Shared Equity Schemes this means Government funded, social housing and co-funded social housing schemes. We will not lend on private company schemes and you must tell us if this the scheme is run by a private company (e.g. builders, developers or employers). If you receive a mortgage offer for a Shared Equity Scheme where the scheme is run by a private company, you must tell us immediately. We will then confirm to you whether the matter can proceed. You do not, however, need to contact us if you hold the mortgage offer issued was issued before 16th January 2023. In the meantime, our updated requirements can be found by copying and pasting the following link http://www.cml.org.uk/cml/filegrab/?ref=8964 into your browser. Last updated: 21/12/2022 |
| Royal Bank of Scotland -Natwest One | We do not lend on shared ownership properties other than in circumstances where the transaction in question will result in the borrower owning 100% of the property at completion. For shared equity and affordable housing you need to notify us (as detailed above in 1.11a) giving details of the proposal. |
| Whistletree | This is outside of our general lending policy but if you consider that the transaction does fall into this category you should contact Customer Services, other details as 1.11a |
| Yorkshire Bank | The team at Clydesdale Sunderland SR43 4JF Tel – 0800 121 4203 |
Selection of Shared Ownership Conveyancing Queries:
- Can I make alterations to my Shared Ownership property?
- I was planning to purchase a shared ownership flat. To date we have incurred £1400 in costs has been deducted in conveyancer fees, mortgage advisor admin fee. I have changed my mind on proceeding. Question is: if I pull out, do we lose all the costs or is some of it reimbursed?
- My partner and I are staircasing up to 100%, our lawyer is advising she is unsure whether we are likely to benefit so she is suggesting we pay the larger amount. Is this right?
- My husband and I have got an AIP from Kent Reliance. We are applying for shared ownership. Conveyancing is underway My grandmother gave us a present of £4000 towards our deposit. Our lawyer have requested her bank statements. We have provided them with a letter confirming it’s not a loan her ID but she has outright refused to give her bank statement as she regards this as too intrusive.
- My son last month bought a shared ownership apartment in Edgware, acquiring the minimum amount of shares permitted but with an option to acquire further shares as funds allow. Would the Help to Buy scheme help to purchase additional shares?