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Email housing@cbh.org


 

Shared owners

St Paul's homesShared ownership is an affordable way of owning a home without taking out a huge mortgage.

Shared ownership is designed as a stepping stone to completely owning your own home, allowing you to buy what you want, when you can afford it.


What will I be buying?

Buying a CBH shared ownership property makes you an ‘owner-occupier’, not a ‘part-tenant’.

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You buy a share of your home (25% to 75% of the home’s value) and pay rent on the remaining share. You’ll need to take out a mortgage to pay for your share of the home’s purchase price.

You start by buying a share in your new home on a lease which is a legal document which proves you own part of your home and sets out certain conditions.

Since you own the lease you will be the leaseholder and we’ll be the freeholder. You will have the same rights and responsibilities as a full owner-occupier.


Shared ownership rent
Shared owners own a share of their home and pay rent on the share that we own. The initial rent, set when the property is built, is based on a percentage of the value of our share. It is a condition of the lease that we provide buildings insurance and shared owners pay for this as well as rent.

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How is shared ownership rent reviewed?
We review shared ownership rent and notify you of any changes once a year, giving at least one month’s notice if your rent is changing. The rent review is based on your lease which usually allows for a percentage increase plus the rate of inflation. If you buy a new shared ownership property there is no change to your rent for the first 12 months.

What happens if I am unable to pay my rent?
If you miss a payment it is important that you contact us as soon as possible, we may be able to help you get support if you are in financial difficulty. If you do not pay your rent we will take you to court and you could lose your home.


Our joint responsibilities
As a leaseholder you have special rights and responsibilities for your home. The lease is a legal contract between you and CBH which sets out our responsibilities.

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As a shared owner you have a leasehold interest in the property and CBH is the landlord.

When you purchased the property your solicitor would have given you a copy of your lease and will explain your rights and responsibilities. The lease sets out the contractual obligations of the two parties: what the shared owner is contracted to do, and what the landlord is bound to do. If you have a mortgage on the property your mortgage lender may also hold a copy. You may also be able to obtain a copy from the Land Registry.

A shared ownership lease typically lasts for 125 or 99 years from the date the first person bought a share in the property. The length of the lease decreases over time.

If the property is sold to a new shared owner, the lease is simply assigned to the new owner – a new lease is not created. It is possible to extend the term of a shared ownership lease.

Your responsibilities:

  • Pay your rent and buildings insurance
  • Take out contents insurance
  • Maintain your home and carry out your own repairs
  • Pay a service charge if there are communal areas to be maintained
  • Contact us if you want to move out of the property or buy more shares – you need to get our permission before you assign (re-sell) the lease to someone else or sublet the property, and to allow us to nominate the new purchaser
  • Ask our permission if you want to carry out alterations
  • Let us into the property after giving you notice to view the condition of the property or to repair an adjoining property or communal areas.
  • Not to cause, commit or allow any forms of harassment, nuisance or other anti-social behaviour
  • Keep safe – we recommend that you arrange annual gas servicing by a recognised gas safety engineer

Our responsibilities:

  • Ensure buildings insurance is in place
  • Maintain and repair any unadopted communal or shared areas, roads or grounds and the structure of flats
  • Collect the rent and any service charge payments from you and notify you of any changes
  • Provide easy access to services

Repairs on shared ownership properties
If you own a house, you are responsible for all repairs and maintenance to the inside and outside of your home.

If you own a flat, you are responsible for maintaining the inside. We’ll take care of day-to-day repairs and maintenance and decoration to the outside of the flats and any communal areas. This is paid for through your service charge.

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If you are unsure whose responsiblity it is to undertake repairs please call us on 0800 408 0000.


Reporting defects in the first 12 months
With all new homes, there are bound to be teething problems. The builder will inspect the property, usually after 12 months from handover. It is also your responsibility to report any issues you believe to be defects as soon as possible.

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We will arrange for the builders to put these defects right. How quickly they do this will depend on how urgent the repair is. You will be responsible for any accidental damage.

You can report defects by calling FREEPHONE 0800 408 0000.

Reporting defects after 12 months
Your home is also covered by the National House Builders Council’s (NHBC) warranty.

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This covers your home for defects in the building workmanship for the first two years, for any repairs carried out during the defects period for up to six years and for structural problems for 10 years, and in some cases 12 years. Contact NHBC on 0800 035 6422 – open Monday to Friday 8:30am – 17:30pm.


Making alterations on shared ownership properties
You don’t need our permission for redecorating and simple repairs, but you will for anything more complicated such as improvements and alterations.

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These alterations include:

  • Structural alterations
  • Replacement kitchens or bathrooms
  • Driveways
  • Central heating
  • Replacement doors and windows
  • Extensions
  • Any heating or electrical installation / replacement
  • Installation of a conservatory
  • Loft or garage conversions

If you wish to remortgage to fund the cost of improvement works, your mortgage lender also needs to contact us for permission.


Insuring shared ownership properties
Because we own the freehold on your home, we need to make sure your home is adequately insured.

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We have a block policy with Aviva Insurance which covers all our properties.  For further information read our Building Insurance summary.

If you have any questions or need to make a claim please contact our Finance Team on 0800 408 0000.


Buying more shares
As a shared owner you may be able to buy more shares in your home. This is called ‘staircasing’.

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To find out if you have enough equity in your home to buy extra shares, and for an estimate of how much a new mortgage might cost, contact an independent financial advisor.

This value can go up or down according to house prices generally. The value will be set by an independent valuer. There will be some costs involved in staircasing, such as a valuation fee and solicitor’s fees, although it shouldn’t cost as much as buying your first share.

For more information read our information pack Your Guide to Staircasing


Selling your home

There are two ways in which most shared owners will be able to sell on to someone else. The legal term is ‘assignment of the lease’.

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You can either buy the remaining shares through staircasing and then sell your home outright, or you can sell only your part-share in it. The conditions attached to the sale are set out in your lease.

For more information contact our Leaseholder Team on 0800 408 0000.

For more information contact our Leaseholder Team on 0800 408 0000

Please note that the information on this web page is a guide for CBHL home owners – your lease sets out the contractual obligations.

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