Lending Criteria – Shared Ownership

 

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Borrowers Share

• Minimum Share: 25%
• Maximum Property Share on Initial Purchase: 75%

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Landlord Restrictions

The provider must be a registered Housing Association or a registered provider appearing on the following list: Registered Providers  <– Back

Locations

• Shared Ownership lending is restricted to England and Wales

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Lease

• The lease must be a Model Lease Agreement

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Memorandum of Sale

• A Memorandum of Sale, which states the share being purchased, ground rent, the rent payable and the services charges is required with the supporting documents.

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Rent

• Shared ownership rent, services charges and ground rent must be disclosed on the mortgage application form and will be treated as a commitment for the purposes of affordability.

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Staircasing

• The lease must allow borrowers to staircase up to 100% ownership and is subject to:
• Approval from the provider (Housing Association)
• A minimum 10% tranche to be purchased
• A solicitor must be used
• A new valuation will be obtained

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Permitted Schemes

The following schemes are deemed unacceptable:-

• Older persons shared ownership
• Designated protected/rural areas
• Home ownership for people with long term disability (HOLD)

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