What is Shared Ownership?
Also known as Part-Buy, Part-Rent, this scheme helps people who cannot afford to buy a home outright. They can buy a share of a property, such as 40%, and then pay rent on the remaining percentage owned by Rosebery.
How do I become a shared owner with Rosebery?
You can take a look at available shared ownership properties on our Homes for Sale page. If you are interested in applying for a shared ownership property, then apply online by clicking the ‘apply now’ button. You will then need to complete a pre-registration form and will be asked to complete a financial assessment to determine your affordability for the property.
What are the eligibility requirements?
Each property will have certain financial requirements according to how many shares of the property that you purchase. You will need to supply information such as household income, the amount of the deposit required to secure the property, savings for fees (including solicitors, surveyors etc). This information will be stated in our Homes for Sale section.
Do I need to be registered with the Help to Buy East and South East?
Yes, you do – we will ask for your Help to Buy reference number if you choose to apply for one of our shared ownership properties. To register with Help to Buy East and South East, please visit their website.
Is there a minimum share I have to buy?
The minimum share that you can buy will be stated on the property information. The maximum share that you can buy at first tranche is 75%. Once you own a shared ownership property you’re able to staircase to buy 100% freehold of a house or 100% of the leasehold for an apartment.
How do I know if my application in a property is successful?
You will receive a letter (subject to contract) inviting you to purchase the property. You’ll be asked to formally accept our offer and pay a Holding/Administration fee of £500.00 to reserve your property. This fee will be deducted off the price on completion of your purchase.
Do I have to pay Stamp Duty Land Tax?
When you buy a share in a property through an approved shared ownership scheme, you may have to pay Stamp Duty Land Tax. You will find more information of Stamp Duty for Shared Ownership properties on the HM Revenue and Customs website.
What solicitor should I use?
You will need to appoint a solicitor that is experienced in the shared ownership lease. If a solicitor is unfamiliar with the shared ownership lease, this can delay your purchase of your property.
What is a lease?
This is the legal document (contract) that sets out the rights and responsibilities of the landlord and you the leaseholder.
What is a resale property?
A resale property is a shared ownership property that has been previously owned.
What are service charges?
The service charge that you pay us is for the maintenance of your communal areas and the services provided to you. Your tenancy agreement will set out the services. The service charge is made up of a number of costs which may include:
- Cleaning and gardening to shared areas
- Door entry systems
- Day-to- day repairs
- Shared TV aerial maintenance
- Fire safety equipment
- Repair and replacement communal furniture
- Lighting of communal areas
We estimate the payment for the service charges at the start of the financial year and carry out a reconciliation after the end of the financial year, which may result in a request for additional payment or there maybe a credit to your account. If your services are carried out by another company known as a managing agent, we pay this company for the service and recover your share of the cost from you through your service charge. The managing agent estimates the service charge and provides the breakdown, which we then send to you. They also carry out the reconciliation, which may result in a request for additional payment or there maybe a credit to your account.
What is a sinking fund?
A sinking fund is set up to cover the costs of internal communal areas and external redecoration and the replacement of components such as door entry systems. Sinking funds are kept with your property if you decide to sell.
If I become a shared owner, how do I buy more shares in my property?
Buying more shares in your home is called ‘staircasing’. You can usually staircase up to 100% of your property and this should take four stages (your lease will confirm if you can do this). Contact us via email if you want to purchase more shares and we’ll arrange for an independent valuation to be carried out, of which you will have to pay for. When you receive the valuation, let us know in writing (letter or email) how much more you wish to buy. Then you’ll need to appoint a solicitor to act for you (you’ll be responsible for the fees). The valuation lasts for three months and you will need to complete your purchase within this time.
How do I sell my share in my property?
If you wish to sell your home, it will need to be valued by a fellow or associate of the Royal Institution of Chartered Surveyors (RICS). They will then decide the amount you can sell your home for according to your share of the property. If you tell us you want to sell your home, we will try to find someone to buy your share. Rosebery has a nomination period to do this, which is usually between eight and 12 weeks, where we are allowed to find a buyer for your share. You cannot sell on the open market during this time. You are then allowed to sell your share on the open market once the nomination period has ended.
As a shared owner, I pay both rent to Rosebery and a mortgage to my bank/building society. Will my rent increase each year?
The rent is regularly reviewed and will increase in line with provisions of your lease from the 1st of April each year.
Can I sub-let my home as a shared owner?
Under a shared ownership lease, you are not allowed to sub-let. This is because you own a share of the property and we have an invested interest in it. However, we may allow it for a limited period of time under certain circumstances. If you wish to do this then please contact us for further information.
What are my repairs responsibilities as a shared owner?
As a shared owner, you are responsible for all of the repairs inside your property. You can report communal repairs in a block to us via our Report a Repair page.