Shared Ownership – legal advice for buyers and sellers

Shared Ownership: Legal advice for buying or selling your share

Shared ownership is an increasingly popular option for those looking to get on the property ladder in England and Wales. If you’re considering buying or selling your share, it’s essential to obtain expert legal advice from Residential Property specialists to navigate the unique processes and responsibilities involved.

What is shared ownership?

It is a government-backed scheme designed to help individuals buy a share of a home (usually between 25% and 75% – now 10% from 1st April 2021 on new leases) and pay rent on the remaining portion, which is owned by a housing association. It’s often seen as a more affordable route to homeownership.

Legal considerations when buying

When buying a shared ownership property, there are several legal considerations to keep in mind:

• Eligibility: You must meet certain income and residency criteria.
• Leasehold Terms: Most shared ownership properties are leasehold. Understand lease length, service charges, and ground rent obligations.
• Resale Clauses: Housing associations typically have the right of first refusal if you choose to sell.

It’s critical to review all clauses and agreements with a lawyer experienced in shared ownership transactions.

Steps to buying a shared ownership property

1. Apply to a shared ownership scheme through a housing association or local Help to Buy agent.
2. Get approved based on financial eligibility.
3. Secure a mortgage for your share of the property.
4. Instruct a residential property specialist to carry out legal checks (conveyancing).
5. Complete the purchase and move in.

Your residential property specialist will handle the lease review, local authority searches, and liaise with the housing association to protect your legal interests.

Staircasing: Buying additional shares

Staircasing allows you to buy more shares in your shared property, potentially up to 100%. Important legal steps include:

• Valuation by a RICS-qualified surveyor.
• Lease amendment or update to reflect new ownership share.
• Notification and agreement with the housing association.

Legal advice ensures compliance with lease terms and minimises transaction delays.

Selling

When selling, the housing association typically has an initial nomination period to find a buyer. Legal requirements include:

• Serving notice of intent to sell.
• Obtaining a market valuation.
• Handling lease transfer and compliance with pre-emption rights.

Without legal guidance, sellers may face delays or complications with leasehold restrictions.

Case scenario

Emma purchased a 40% share of a two-bedroom flat in Norwich via a shared ownership scheme. Five years later, she decided to sell her share. She consulted Fosters Solicitors, who advised her on obtaining a formal valuation, navigating the housing association’s nomination rights, and managing the lease transfer. Thanks to legal support, her transaction completed smoothly within eight weeks.

Expert Insights

Legal professionals specialising in shared ownership advise:

• Always instruct property conveyancing lawyers with shared ownership experience.
• Understand your responsibilities under the lease, including repair obligations and service charges.
• Request a management pack early to avoid delays when selling.
• Review staircasing procedures before committing to initial purchase.

Benefits and challenges

• Benefits:
  • Lower initial purchase cost.
  • Option to increase ownership over time.
  • Access to homeownership for first-time buyers.
• Challenges:
  • Leasehold complexities.
  • Rent and service charge obligations.
  • Resale limitations.

For more comprehensive guidance, visit the UK Government’s Shared Ownership Scheme resource.

Purchasing a shared ownership property can involve a few more complexities and additional paperwork, but our Residential Property Specialists have experience in supporting those purchasing through the scheme, whether that’s as a first-time buyer, or someone who’s an existing share owner.

Contact us for more information.

FAQs

What is shared ownership?

Shared ownership is a scheme where you buy a share of a property and pay rent on the remaining share owned by a housing association. It helps those who cannot afford to buy a home outright.

Can I buy more shares later?

Yes, through a process called staircasing, you can buy additional shares of your home. Legal checks are needed each time you staircase.

How do I sell my shared ownership home?

You must first notify your housing association, who typically has a period to find a buyer. A residential property lawyer can help with lease compliance and transfer documentation.

Is Shared Ownership right for me?

If you meet the eligibility criteria and want to get on the property ladder with a smaller deposit, shared ownership could be a suitable option.

What are the legal costs involved?

Legal fees vary but typically include conveyancing fees, valuation fees, and possible admin charges from the housing association.

What legal documents should I review?

1. Lease agreement
2. Service charge and rent breakdown
3. Staircasing process documentation
4. Housing association resale procedure

Comparison Table: Shared Ownership vs Traditional Buying

This article was produced on the 21st August 2025 for information purposes only and should not be construed or relied upon as specific legal advice.