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Shared ownership

Shared ownership

How cohabitation agreement mutual property ownership

27/12/2016

Due to exorbitant house prices in the UK, real estate agents have come up with various schemes to enable people to own property. One of these is the cohabitation agreement. Cohabitation agreement allows two individuals who are not married to share ownership of property. It is a legally binding agreement and is recognised law. Its formation and termination are subject to adherence to a legally binding contract. Cohabitation allows couples to pool together their resources in buying a home. The couples may also use this agreement to take advantage of real estate incentives that are put forward by the government, such as Help to Buy Isa. The couples must come up with an agreement regarding the use of the property and property dissolution. The agreement gives each couple a peace of mind during their stay in the property since they will not be living in fear of what the other partner might do. The agreement must be clearly spelt out and duly signed by each of the couples. Each couple is entitled to a copy of the document. It is advisable to keep this document in a lawyer’s office or any other safe place. The document will come in handy during the dissolution of the contract. Failure to produce the contract or cohabitation agreement may make a legal intervention in a dispute between the couple difficult or even impossible to solve.

A cohabitation agreement need not be complicated and full of legal jargons. It can be drawn in a simple language that is clear to the parties involved both in the contract drafting and during the dissolution of the contract. Even though the agreement is simple, it should be as specific as possible. Ambiguity may cause interpretation difficulties during conflict resolution. Factors to consider when drawing the contract include:

  • The manner in which expenses will be shared. The couple may share expenses equally, or according to each individual’s financial capabilities. They may also pool their funds in a joint account and use the account to pay for common expenses.
  • How properties acquired before and after the relationship are to be shared.
  • How to go about dispute resolution
  • What is to be done in the case of death of one of one of the couple.

There are additional documents that make cohabitation contracts easy to manage. These include wills, durable power of attorney, and joint tenancy with a right of survivorship. Wills are quite common documents of inheritance. They outline how a deceased person’s property is to be shared. Application of the concept of wills in cohabitation agreement is similar to how it is used everywhere else. A will in a cohabitation agreement states the name and the rights of a person that is entitled to continue cohabitation agreement in the case of death of a pre-existing owner of a cohabited property.

What you need to know about selling shared ownership problems

15/12/2016

Shared ownership occurs when a buyer purchases a stake in a property while paying rent on the rest of the share of the property. The buyer must meet eligibility criteria for shared ownership. Eligibility criteria include a household income of no more than £60,000, a first time home owner, or a homeowner who cannot buy a house in an open market. Selling a property in shared ownership is not as easy as buying. These problems make the sale of these properties difficult and sometimes impossible. A solicitor may help you sort out some of the selling shared ownership problems.

High solicitor fees

High solicitor fees are one of the problems a seller will encounter. Most properties under shared ownership are leasehold properties. Conveyance fees for leasehold properties are usually very high. The cost for leasehold properties that are in shared ownership is even higher because of the volume of legal work and documentation required. A solicitor who is conveyancing leasehold properties must work with real estate agents or property managers, financial institutions and the freehold owner of the property. This is in addition to other routine conveyancing researches. The laws governing ownership of a shared property are specific. The solicitor should be trained in this type of conveyancing, and, even better, have a wide experience in selling shared ownership properties. This means that the seller will have to cough out huge sums of money for conveyancing.

Diminishing market for shared ownerships

While it is easier to own shared ownership property, very few people are willing to buy shared ownerships if they want to settle down. This implies that the market for shared ownership properties is very sparse. There are many problems surrounding purchase and ownership of shared properties. The buyer has to pay rent, monthly service fees and maintenance fees. Of course, he will also have to make monthly mortgage repayments if the property is bought with a mortgage. Maintenance fees can sometimes be high especially when major constructions have to be undertaken. All these expenses are unappealing to most buyers. That is why most buyers of shared ownership properties are those that have little experience in real estate or have lower incomes.

Eligibility criteria for buying shared ownership

Besides the issues surrounding occupancy of shared properties, a good number of buyers also fail the eligibility criteria for buying shared ownership properties. Most people in the UK already have homes. Those who have homes but still want shared properties have the ability to get enough mortgages to buy properties in the open market. People who can afford a mortgage for open market properties are not allowed to buy properties in shared ownership. To make matters worse, financial institutions are never willing to give mortgages on shared properties. All these result into a greatly reduced pool of buyers of shared properties.

Consent of House owner

Sale of shared ownership properties is limited by the right of first refusal. The right of the first refusal prevents the seller from putting the property in the market without the consent of the housing provider. It gives the housing provider the right to repossess the property and sell it to another person. The housing provider who claims the right of first refusal may fail to get a buyer. In this case, the seller is allowed to put the property out on the market. Failure of the seller to adhere to right of first refusal can result in punitive measures, which include payment of damages to the housing provider.

Land Registry fees and Conveyancing

16/11/2016

An additional cost when you move houses or change anything in the ownership are the Land Registry fees. What are these fees and why do you have to pay them? The Land Registry is a governmental agency responsible for every change you make in a title to the property and for all the details regarding a house owner. Any alteration must get through the Land Registry, so you are protected against squatters or tenants and to actually be the legal owner of your house.

Starting with 2014, the Land Registry system changed, and you are able to send any modifications and the necessary paperwork online, which saves you time and also considerably reduced the costs of the Land Registry fees. The difference between posting the alterations by post and by email can sometimes mean hundreds of pounds still in your pocket. You can check if your property is eligible for the electronic platform on the government website. The cost is significantly reduced for bigger properties, where the fee is lower even with £500.

What do you pay Land Registry Fees for? Anything from adding/removing a person from the property title, boundaries amendments, change of name, cancellation of the lease or equity sharing lease constitutes an adjustment to the property title, and there are different fees to be paid.

How can you pay the Land Registry fees?

  • By cheque or postal order
  • Credit/debit card/cash at one of the Land Registry agency, by appointment
  • Variable direct debit, through a Business e-services account

If you plan on buying a new residential property, we recommend a Land Registry search before the transaction. The search will reveal if the seller is the legal owner and if he has the right to sell. Also, there is information about the owners' equity (if the house is under Shared Ownership), any mortgages or leases and details about title registers, any plans or alterations brought to the property in the past and specifics about prior and current owners.

The related costs depend on the value of the property, application type and ownership transfer – in the case of a shared ownership and you only buy an equity (part), or you are the only owner (whole). To this, we add the difference between applying by post or on the digital platform.

Shared ownership scheme: The popular scheme of buying a house in the UK

23/09/2016

Buying a home is one of the biggest financial investments, for some the most substantial they will ever make. When it comes to the UK, the prior affirmation is even more veracious: expensive houses, small salaries or difficulties in getting a mortgage. The Government comes to your aid with various schemes to buy a house.

  • If you have a small deposit (at least 5%), the Help to Buy scheme (Equity Loan or Mortgage Guarantee) is your best choice
  • Right to Buy/Right to acquire allows council tenants to buy their council house, with a discount, if you lived as a council tenant for the last three years
  • Shared ownership scheme enables you to purchase a house through a housing association: you buy a percentage of the house (25% to 75%) and pay the rent for the rest

Shared ownership scheme

Whilst you will own a part of the house, you pay a discounted share on the remaining share. The mortgage you need can be anywhere between a quarter and three-quarters of the house value, and you can later own 100 % of the house through staircasing.

Eligibility

  • Household income: from April 2016, less than £80,000 (outside London) or £90,000 (London)
  • You used to own a house and cannot afford one now
  • You rent a council or association property
  • If you are over 55, you can apply for Older People’s Shared Ownership

Conveyancing with shared ownership scheme

The shared ownership properties are always leasehold, which means the conveyancing fees might be slightly more substantial.

The conveyancing process remains the same, with a Housing Association (HA) or Registered Social Landlord (RLS) acting to check if you meet the criteria and your mortgage as well. Their solicitor will work with your solicitor to draft the contracts and the lease, which should contain all the shared property costs. Such as the rent and service charge for maintenance (even if you only own a share of the house, you still pay the full price) paid to HA and details about the communal area cleaning or reparations.

Some solicitors are specialised in shared ownership property conveyancing. Researching before choosing your solicitor can save you money and time, making the conveyancing process as quick as possible. On the other hand, when it comes to leasehold and shared ownership, the conveyancing can take longer (anywhere between 3 and six months), due to the complex nature of the leasehold.

Why Shared Ownership in Hampshire should be chosen

22/09/2016

Hampshire is one of the most important areas in the United Kingdom. The huge demand for the properties in this area often attracts the buyers to have a dream home here. However, the budget and the purchase amount often deny them the same. Shared Ownership in Hampshire are something that people look to owning a future home if they are illegible. A person starts to own part of a home with some percent of shares and can eventually buy the remaining percent of the property later. This is mostly done with the housing associations. The conveyancing process of the shared ownership remains the same, and the solicitors play a vital role in Hampshire.

Shared Ownership in Hampshire

The Housing Associations offer the partial or shared ownership to the people in Hampshire. With this scheme, a person can buy a portion of the house and the remaining portion remains with the Housing Association. The buyer has to pay the rent for the remaining amount to the association. However, the buyer can buy the remaining amount anytime he or she wants.

The process of conveyancing and financing is same for shared ownership. The person needs to pay the deposit and can get the mortgage for the remaining amount. The purchase price is obviously less for the shared ownership thus it becomes easy for the buyers to own the property. The buyer can own 100% ownership of the property as well. The solicitors in Hampshire ensure that the buyer gets the property registered at the Land Registry and complete all the conveyancing formalities. Many solicitors in Hampshire are experienced and knowledgeable for the shared ownership in Hampshire. One can just carry out research for the same.

Shared Ownership Solicitors in Hampshire

Here are some of the solicitors who provide the conveyancing for shared ownership in Hampshire. However, one must search for the solicitors online as well and compare the price before making a final call.

Brooks Partners

Brooks Partners is a Law Firm that extensively provides the services for the shared ownership conveyancing. The dedicated solicitors ensure that the buyers make the most of it. The affordable rates further make it one of the most popular.

Philips Solicitors

Philips Solicitors is also a Law Firm and has comprehensive services for the conveyancing in Hampshire including the shared ownership. The reasonable solicitor fees make it very popular among people.

Glanvilles

Glanvilles is also a reputed law firm and is known for the shared ownership conveyancing facilities for affordable counsel fees.

David Ebert and Co

David Ebert and Co has great completion rate for shared ownership conveyancing process and is known for the reasonable attorney fees.

Shared Ownership Conveyancing can be confusing at times for home purchasers.

26/05/2015

Shared proprietorship/ownership is a plan where a proprietor, generally a Housing Association (HA) or (RSL) will offer a rate offer of a property to a buyer while holding the remaining offer. It is intended to help individuals get on the property step who generally couldn't manage the cost of it.Conveyancing in the field of shared possession/ownership includes purchasing and offering property regularly inside of the requirements of one of the accompanying three vehicles; shared proprietorship, shared value and Help to Buy. The activities and exchanges needed for shared proprietorship conveyancing are frequently more intricate and/or extended due to the more perplexing nature. Shared ownership Conveyancing can at times show up pointlessly confused to home buyers.

Similarly your Solicitor may prescribe that you have a trust deed – again you are purchasing a home for yourselves, not for any other individual, so why this discussion of trusts?

It would be anything but difficult to accept that these are only routes in which the legitimate calling makes things convoluted, most likely with a perspective to piling on the charges. Anyway, responsibility for house and area is more convoluted than owning physical articles, and issues can emerge when two individuals possess the same property.

The significance of joint occupants and inhabitants

English law now gives that the lawful bequest held by co-proprietors as trustees is resolute, and is constantly claimed by them as joint occupants in unified shares. Each co-proprietor along these lines mutually claims the entire legitimate title, as opposed to having a particular offer. "Occupant" in this setting is utilized as a part of its unique feeling of somebody who claims or "holds" land, as opposed to its general advanced feeling of somebody who rents or rents a property.

However the fair hobbies of the co-proprietors can be held either as joint occupants or inhabitants in like manner. Joint occupants will possess the entire fair enthusiasm for unified shares, yet inhabitants in like manner can claim indicated shares, and can to some degree manage these independently.

Trusts and Shared Possession

the idea of trusts to manage Shared ownership is important. At its least complex, making a trust includes property being vested in one or more persons, called trustees, to hold it in trust for someone else, called the recipient. The trustees are said to claim the legitimate domain and the recipient has an evenhanded hobby.

At the point when two or more individuals offer responsibility for home present-day law gives that they hold the lawful domain as trustees for themselves as recipients on a Trust of Area .

Shared ownership/Proprietorship Conveyancing Charges

In the event that you think a trust deed is required, talk about this with your Conveyancing Specialist and request a quote for any extra expenses before consenting to continue. The expenses for such a deed can shift as indicated by the unpredictability of your prerequisites. Most firms can now have standard structures which cover the most widely recognized circumstances and if one of them can be used the expenses ought to be humble.

At the point when joint buyers have a home loan, the Specialist/solicitor will need to complete liquidation and ID checks against every purchaser. Some law offices may pass the expense of these quests on to the customers, in which case you ought to be plainly educated of this toward the begin of the exchange.

Shared ownership Solicitors frequently suggest trust deeds

Consequently when there is Shared ownership, Conveyancing Specialists/solicitors regularly suggest that the gatherings set out their necessities as a trust deed. This is particularly helpful where co-proprietors don't have whatever other legitimate relationship, for example, being hitched. Such a deed can't cover all projections, and won't fundamentally stay away from question. The courts have different forces identifying with Shared ownership /Possession property, and a trust deed may not so much override them. This is particularly so for marital property. However a deed will give a structure to which the courts can allude in the case of a debate.

At the point when the property is shared as valuable joint occupants, the area registry won't make any note on the register. On the demise of one proprietor their offer naturally goes to the survivor, conveying the trust to an end. Subsequently the surviving proprietor can offer the property in his or her own particular name without the need to select a further trustee.