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Property Matters: Ask Siobhain

In a brand new sponsored monthly series, legal expert Siobhain Egan gives readers advice on all aspects of the property market

Siobhain Egan
Siobhain Egan
Siobhain Egan was brought up in Fulham, off the Kings Road, met “the one” – a north London boy who refused to move south – and so relocated to leafy NW1. Quickly she proceeded to fall in love with Camden and all its neighbouring areas, from King’s Cross to Kentish Town, Primrose Hill to Archway.

Now a director at Lewis Nedas Law, we’re delighted that today she starts a monthly column talking about issues affecting those seeking to get on the property market.

Should I buy into a Shared Ownership Scheme?


“One of the issues that we are often asked by young would-be property purchasers concerns buying into Shared Ownership Schemes, which are a very popular entry into the London market.


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However, as with everything there are both advantages and disadvantages with such schemes. The principle is that an individual buys a percentage of the property (usually between 25-75%) from the freeholder, which is usually a Housing Association.

The properties are usually flats on leasehold, and the idea is that the purchaser can ‘staircase’ their way by increasing their percentage stake. They rent the remainder of the property from the Housing Association.

Entry requirements are also quite rigorous. It is open to first time purchasers, those over 55 years of age, the less able-bodied but none of these individuals can earn more than £60,000 per annum.

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When you decide that you want to sell, the Housing Association has the right of first refusal
One of the major issues to consider when buying into Shared Ownership is cost e.g. stamp duty (if your purchased share is over the stamp duty limit of £125, 000), ground rent, service charges, repair/maintenance bills, rent, rental deposit and, in some cases, independent valuation survey.

Recently the Court of Appeal held that a Housing Association had the absolute right to repossess a property where the leaseholder had fallen into arrears with her rent, including the share that she owned. So getting your figures and budget correct are an absolute priority.

What is vitally important is that you scrutinise both the leasehold and rental agreements or instruct a specialist property lawyer to do it for you.

When you decide that you want to sell, the Housing Association, as the freeholder, has the right of first refusal and the sole right to market the property for the first eight weeks that the property is on the market.

Selling the property should not be a problem because there are lengthy waiting lists for them. Shared Ownership allows a property owner to avail of capital appreciation: house prices in February 2014 jumped by over 9% alone, to establish a good record with a mortgage lending company, to get on that evasive property ladder and to call a little bit of London your own.

LNLS logo FINALThis column is sponsored by Lewis Nedas, a firm of lawyers established in Camden Town for 31 years. Got a question for Siobhain? Head to their website here, email her at segan@lewisnedas.co.uk, or call 0207 387 2032.

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