Quiz - how well do you understand your lease?
Understand the key things you should know about your lease. If you are a purchaser, this can help make sure your solicitor has covered all of these points and explained them clearly to you.
The government has published a technical consultation seeking views on the implementation of the new model for shared ownership. The consultation seeks to capture views on how best to implement the new model for Shared Ownership to ensure it can be smoothly adopted by providers and lenders, and effectively support aspiring homeowners.
As part of the new shared ownership model, the government has revealed that the vast majority of homes funded through the Affordable Homes Programme (AHP) will be subject to the shared ownership Right to buy. The Right to Shared Ownership (RTSO) will give the majority of social tenants living in AHP homes the opportunity to purchase a share starting from a minimum of a 10% stake in the property.
The new model will be more consumer-friendly and will better enable social tenants to buy more of their property and eventually reach full ownership.
The key changes to shared ownership are:
- Reduce the minimum initial share a prospective buyer can purchase from 25% to 10%
- Introduce a new gradual staircasing offer, to allow people to buy additional shares in their home in 1% instalments with heavily reduced fees
- Introduce a 10-year period during which the shared owner will receive support from their landlord to pay for essential repairs
- Shared Ownership leaseholders (shared owners) will be given more control over how they can sell their home
These changes are scheduled to be introduced in April 2021 when the AHP begins.
The deadline for responding to the consultation is 17th December 2020 at 11:45 pm.
You can respond to the consultation in one of three ways:
- Respond online
- Email to: [email protected]
- Write to: Shared Ownership consultation
Ministry of Housing, Communities and Local Government
3rd Floor, South East Fry Building
2 Marsham Street