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Shared Ownership Conveyancing
This page was built for domestic conveyancers concerning mortgage company specific instructions relating to shared ownership conveyancing. Private Registered Providers of Social Housing, other social landlords and house builders sometimes provide schemes under which a borrower will not have total ownership of the property and a further party will also own a share or will be a taking a charge over the title. In these circumstances the property lawyer must check with the individual lender to see if they wish to lend and what their instructions are.
The UK Finance lenders handbook dictates the conditions (and even tells the conveyancer whether they are prepared to lend in shared ownership circumstances at all). By way of illustration of differing requirements:
| Lender | Policy |
|---|---|
| Bank of Scotland Private | We do not accept shared ownership or shared equity properties as security. |
| Coventry Building Society | CBS does not lend in any of these circumstances. |
| Fleet Mortgages | Not applicable. We will not lend on properties to which this section applies. |
| Halifax | Email Conveyancer Support ConveyancerSupportTeam@lloydsbanking.com If the property is being purchased under an Affordable Housing scheme, our requirements are covered in the Affordable Housing Guidance Notes for Conveyancers. The Notes are in the process of being updated, however, in the interim please note the following in relation to Section 4 - Shared Equity Schemes. From 16th January 2023 we will only lend on Affordable Housing Shared Equity Schemes this means Government funded, social housing and co-funded social housing schemes. We will not lend on private company schemes and you must tell us if this the scheme is run by a private company (e.g. builders, developers or employers). If you receive a mortgage offer for a Shared Equity Scheme where the scheme is run by a private company, you must tell us immediately. We will then confirm to you whether the matter can proceed. You do not, however, need to contact us if you hold the mortgage offer issued was issued before 16th January 2023 In the meantime, our updated requirements can be found by copying and pasting the following link http://www.cml.org.uk/cml/filegrab/?ref=8964 into your browser. |
| NRAM Ltd | This is outside of our general lending policy but if you consider that the transaction does fall into the category you should contact us by using the details in 1.11a. |
| RBS- First Active | We do not lend on shared ownership properties other than in circumstances where the transaction in question will result in the borrower owning 100% of the property at completion. For shared equity and affordable housing you need to notify us (as detailed above in 1.11a) giving details of the proposal. |
| RBS - Virgin One | We do not lend on shared ownership properties other than in circumstances where the transaction in question will result in the borrower owning 100% of the property at completion. For shared equity and affordable housing you need to notify us (as detailed above in 1.11a) giving details of the proposal. |
Recent Shared Ownership Conveyancing Questions:
- I am planning to buy a shared ownership property. It's an oldhouse, and a re-sale (i.e. not the normal new-build appartment and fresh lease scheme). The remaining lease on the share has just eighty years remaining. Is this a problem?
- When buying a shared ownership home what level of deposit do I need, Is the percentage calculated of the share or of total property value?
- I own thirty percent of a shared ownership apartment. I now wish to purchase a further seventy percent. I appointed the valuer suggested by the housing association. The report gave the price is £355k. Nevertheless my neighbor has the same size flat and had the same valuer, but his apartment price is £325k only because he needs to sell. Can you offer any tips on how I may get my flat price lowered?
- I am in the process of buying a shared ownership property. So far £1400 in costs has been deducted in lawyer fees, loan administration fee. I am now considering of withdrawing due to a new job offer. Question is: if I pull out, do we lose all the costs or do I get some of it back?