Can You Buy Shared Ownership Outright?

Can you buy shared ownership outright?

The short answer is yes. However, you must understand how the scheme works and be aware of some of the pitfalls.

When you first enter Shared Ownership, you can set your share at between 30% and up to 70% ownership in the property. You then pay ‘rent’ for the remainder of the share to the housing association.

This means that you would not be able to own a shared property outright from the very beginning, but this is possible later.

How to buy 100% of a Shared Property

A process called ‘staircasing’ allows one to achieve full ownership of a shared ownership property.

This enables you to buy more shares in your home by making lump sum payments of 10% or more. For instance, if you own 60% of the property, you could make four payments of 10%, two payments of 20%, or a single payment of 40%.

The advantage of doing this is that the ‘rent’ you pay will be reduced and will become zero when you achieve 100% ownership.

Are there any downsides to 100% ownership of a Shared Property?

One downside is that some fees, such as valuations and solicitors’ fees, may be incurred through ‘staircasing’, and these will be payable each time you ‘staircase’, although these should be lower than when you bought your initial share.

Be aware that with 100% ownership, you may also be required to start paying ground rent, so you should contact the housing association to see whether it is required under the lease agreement and how much it will be.

Are there properties you cannot ‘staircase’ to 100% ownership of?

Yes. You’ll find that some schemes do not allow 100% ownership.

These are primarily developments designed for people with particular needs and have incorporated features such as on-site care facilities for the elderly.