Buying a shared ownership property is one of the most practical routes onto the housing ladder for those who cannot yet afford to purchase outright on the open market. The scheme allows you to buy a share, typically between 10% and 75%, of a property, paying rent on the remainder to a housing association. It is a well-established government-backed initiative, but the process of buying a shared ownership house or flat involves legal steps that differ in important ways from a standard residential purchase. Getting those steps right matters.
In this article we explain the legal process for buying shared ownership property. If you are new to the concept and want to understand the scheme in full before reading on, please read our article How Does Shared Ownership Work?
Step 1: Establish Your Eligibility
Before anything else, you need to confirm that you meet the eligibility criteria for shared ownership. The headline rule is that your household income must be £80,000 per year or less, or £90,000 or less in London. You must also be a first-time buyer, or a previous homeowner who no longer owns a property and cannot afford to buy outright.
Some schemes are specifically reserved for particular groups, including key workers, military personnel, and older buyers. Housing associations administering the scheme may have additional local connection requirements for certain developments.
Step 2: Find a Property and Register With a Housing Association
Shared ownership properties are not listed on the open market in the same way as conventional homes. The starting point is to register with a housing association or search via the government’s own Find a Home platform, which lists available shared ownership homes by location.
Whether you are buying a shared ownership house or buying a shared ownership flat, properties will typically be newly built or, in some cases, resales from existing shared ownership owners. Resales are sometimes referred to as second-hand shared ownership and involve a slightly different process, more on that below.
Step 3: Secure a Mortgage in Principle
Shared ownership mortgages are a specialist product. Not all lenders offer them, and the criteria can differ from mainstream residential mortgages. You will need a mortgage in principle before a housing association will formally reserve a property for you.
It is worth working with a mortgage broker who has experience of shared ownership products, as they will be able to identify lenders whose criteria align with your financial position. The mortgage will only be secured against the share you are purchasing, not the full market value of the property.
Step 4: Reserve the Property
Once you have identified a property and obtained a mortgage in principle, you will pay a reservation fee, typically between £100 and £500, to the housing association. This takes the property off the market for a set period, usually four to eight weeks, while the legal process gets underway.
At this point, you should instruct a solicitor. Not just any solicitor, this matters. Shared ownership conveyancing solicitors need to understand the specific legal framework that governs these transactions. The lease structure, the rent review provisions, the restrictions on subletting, and the rules around staircasing all require specialist knowledge. Instructing a firm without that experience is a risk you genuinely do not need to take.
Step 5: Instruct a Specialist Solicitor
This is arguably the most important decision in the entire process. Buying a shared ownership property is a leasehold transaction, meaning you will be taking on a lease rather than purchasing the freehold. The lease will typically run for 99 or 125 years, and its terms will govern everything from how you pay your rent, to whether you can sublet the property, to the conditions under which you can increase your share. You can read more about this in What is Leasehold Property?
Your solicitor will review the lease carefully, raise enquiries with the housing association’s solicitors, carry out the usual property searches, and report to your mortgage lender. They will also explain the terms of the lease in plain English so you know what you are signing.
For resale shared ownership properties, there is an additional complication: the lease already exists, which means your solicitor needs to review what has happened during the current owner’s tenure and check that all obligations under the lease have been met.
Step 6: Understand Stamp Duty on Your Purchase
Stamp duty on shared ownership property works differently to a standard purchase, and it is worth understanding your options before you exchange contracts.
On a shared ownership purchase, buyers can elect either to pay stamp duty on the full market value of the property at the outset, which may feel counterintuitive but avoids paying further stamp duty when you increase your share later, or to pay stamp duty only on the share being purchased. If you choose the latter, you may be required to pay additional stamp duty as you staircase upwards. Staircasing is the process of buying additional shares in your property over time, and it is explained in more detail below.
The interaction between shared ownership and stamp duty is a genuinely technical area, and the right approach depends on your individual circumstances, your plans for staircasing, and the value of the property. First-time buyers may be entitled to stamp duty relief, which can reduce the amount payable significantly.
Use the Shared Ownership Stamp Duty Calculator on the Starck Uberoi website to get an immediate estimate of your liability.
Step 7: Exchange Contracts and Complete
Once your solicitor has reported to you on the lease, answered your questions, and received satisfactory search results, you will be in a position to exchange contracts. At exchange, you pay your deposit, usually 5% to 10% of the share being purchased, and the transaction becomes legally binding.
Completion typically follows within one to four weeks. On completion day, the mortgage funds are drawn down, the purchase price for your share is paid to the housing association, and you receive the keys.
Your solicitor will then register the title and your mortgage at HM Land Registry.
Step 8: Think About the Future — Staircasing
Buying a shared ownership property is rarely meant to be a permanent arrangement. Most buyers intend to increase their ownership stake over time through a process known as shared ownership staircasing. This involves purchasing additional shares, usually in minimum tranches of 10%, until you own 100% outright.
Each staircasing transaction is a separate legal process and will require your solicitor’s involvement again. It is worth choosing a firm that can support you through the whole journey, not just the initial purchase.
For a fuller picture of the benefits and drawbacks of the scheme, our article on the pros and cons of buying a shared ownership property is a useful read before you commit. We cover the process in more detail in shared ownership staircasing explained.
Why the Right Legal Advice Makes All the Difference
Shared ownership conveyancing is not complicated for an experienced solicitor, but it is a niche area with its own rules, its own lease structures, and its own pitfalls. A solicitor who primarily handles standard freehold conveyancing may miss something that an experienced shared ownership specialist would catch without hesitation. The costs of getting it wrong, in terms of delays, renegotiations, or lease terms you did not fully understand, can far outweigh any saving made on legal fees.
Starck Uberoi Solicitors have offices across London and the South East. Our Brentford solicitors are located on the High Street in a grand three-storey building, just a short distance from Brentford County Court. Our Belgravia solicitors are just a five-minute walk from Victoria tube station in Grosvenor Gardens. Our Ealing solicitors are a short walk from both Ealing Broadway and South Ealing, and our Richmond solicitors have the pleasure of overlooking the picturesque Richmond Green. Our solicitors in Canterbury are located within the UNESCO World Heritage Site of Canterbury Cathedral. Our partner, Raminder Uberoi, can also offer a Notary Public service at any of our London offices.
Wherever you are based, our team can advise on conveyancing for shared ownership with the depth of knowledge this kind of transaction requires.
Get a Conveyancing Quote
Ready to take the next step? Use the Starck Uberoi online conveyancing calculator to get an instant, transparent quote for your shared ownership purchase. When the time comes to move on, our guide to selling a shared ownership property covers the resale process. Or speak to our team directly on 020 8840 6640, we are happy to talk through the process before you commit to anything.
FAQs: Buying a Shared Ownership Property
Not as a general rule. The scheme is designed for first-time buyers and those who previously owned a home but no longer do so and cannot afford to buy outright. If you currently own a property, you would need to sell it before being eligible.
The legal process is broadly the same. Both are leasehold transactions. That said, buying a shared ownership flat typically involves a more complex lease, as it will also deal with service charges, building insurance, and management company obligations in addition to the standard shared ownership terms.
From reserving a property to completion, the process typically takes eight to twelve weeks, though this can vary depending on the housing association’s responsiveness, the mortgage lender’s requirements, and whether the property is a new build or a resale.
Yes, strongly advisable. Shared ownership leases have specific terms and obligations that differ from standard residential leases. A solicitor experienced in this area will identify potential issues, explain your obligations clearly, and ensure the transaction is handled correctly from the outset.
Generally, no, not until you own 100% of the property. Most shared ownership leases prohibit subletting while any share is retained by the housing association. Your solicitor will confirm the exact terms of your specific lease.
The housing association typically has what is called a nomination period, usually eight weeks, during which they have the right to find a buyer for your share. If they cannot, you are usually free to market the property on the open market, subject to any conditions in the lease. Our guide to selling a shared ownership property sets out the process in full, and your solicitor can advise you when the time comes.
