Urgent Telephone Weekends : 01233 331111

Shared Ownership

Shared Ownership is a government-backed scheme that helps people buy a home who might not be able to afford purchasing one on the open market. Shared Owners purchase a share of a property and pay rent to the freeholder on the remaining share.

If you become a Shared Owner through an Affordable Homes Scheme, you enter into a Lease with Ashford Borough Council and have certain financial responsibilities. Shared Owners pay rent to the Council on the percentage they do not own, and the rent increases each April.  Shared Owners pay a mortgage for the share they do own. 

Ashford Borough Council is the freeholder of this type of property, until such time as a property is purchased outright. This can be done in stages, known as ‘staircasing’.

There are two Shared Ownership Models, the 2016-2021 Affordable Homes Programme, and the 2021-2026 Affordable Homes Programme. There are different rules depending on which model your Shared Ownership home falls under. 

If your home falls within the 2016-2021 programme, the following applies: 

  • Eligibility criteria applies
  • Minimum initial percentage purchase of 25%
  • Maximum initial percentage purchase of 75%
  • Staircasing increments a minimum of 10%
  • Typical lease term of 99 years – ABC Leases are 125 years
  • You are responsible for all repairs and maintenance, even if you don’t own 100%
  • You will contribute towards Estate Service Charges, Ashford Borough Council Service Charges and Buildings Insurance  
  • The freeholder is involved in finding a buyer if you wish to sell your Share of the property

If your home falls within the 2021-2026 programme, the following applies: 

  • Eligibility criteria applies
  • Minimum initial percentage purchase of 10%
  • Maximum initial percentage purchase of 75%
  • Staircasing increments reduced to a minimum of 1%
  • Lease term must be 990 years and uses a simplified lease with a key information summary
  • You will contribute towards Estate Service Charges, Ashford Borough Council Service Charges and Buildings Insurance  
  • The freeholder is involved in finding a buyer if you wish to sell your Share of the property
  • £500.00 per year is available from the Landlord for essential repairs for the first ten years of the Lease for purchasers with less than a 100% share. Any amount not used can be rolled over once in to the next year. Shared Owners must arrange the repairs themselves and claim the cost back from the Landlord. Essential repairs cover things like structural repairs, heating systems, water and gas supplies and drainage/plumbing. The works must be carried out by a TrustMarked registered tradesperson. 

Shared Ownership properties are purchased by the Council from a Developer. The Council does not own the whole development in most cases, and therefore there are Estate Service Charges set by the Management Company of the Development. These Estate Service Charges are invoiced to the Council initially, and the Council has the right to re-charge the costs to the Shared Owners as per the terms of the Lease Agreement. 

Shared Owners will also be required to have Buildings Insurance on their properties which is arranged by the Council.

Shared Owners will also be required to pay the Council an annual Management Fee which contributes towards the running costs of the Leasehold Managment Service. 

There are many costs associated with being a Shared Owner – the rent on the share not owned, the mortgage for the share owned, the Estate Service Charge, the Council’s Management Fee and the Building Insurance. It is therefore important that if you are considering purchasing one of these properties, you discuss the terms of the lease in detail with your conveyancing solicitor. 

It is important to find out which scheme your Shared Ownership property falls under, so that you understand your rights and responsibilities. Those looking to purchase a Shared Ownership property where the Council owns the Freehold can contact Esme Ervine, Development Partnership Officer for more information, by emailing esme.ervine@ashford.gov.uk

For any queries about Estate Service Charges, Buildings Insurance or the Council’s management fee, please feel free to contact Leasehold Services by emailing leaseholdandrtb@ashford.gov.uk

There is more information about Shared Ownership in our Becoming a Shared Ownership Leaseholder document.

Frequently Asked Questions

+ How do i become a Shared Owner with Ashford Borough Council?

To find out about available schemes and up and coming schemes, look out for properties being marketed as Shared Ownership on real estate platforms. Alternatively, you can contact the Development Team directly by emailing esme.ervine@ashford.gov.uk or calling 01233 330 613.

+ What is shared ownership and how does it work?

Shared Ownership is a government-backed scheme that helps people buy a home who might not be able to afford purchasing one on the open market.

Shared ownership lets you buy a share of a property (usually between 10% and 75%) and pay rent on the remaining part owned by a housing provider.

+ Who is eligible for shared ownership?

It's typically for first-time buyers, people who used to own a home but can't afford one now, or existing shared owners. Income limits may apply. There is further informaton about eligbility on the gov.uk website: https://www.gov.uk/shared-ownership-scheme/who-can-apply

+ How much of the property do I own?

You own the percentage you purchase. The rest is owned by the housing provider, and you pay rent on that portion.

+ Can I increase my share over time (staircasing)?

Yes, you can buy more shares later, usually in increments, until you own 100% of the property. This is called staircasing.

When you reach 100%, you become the Freeholder and the Council will no longer have an interest in the property. When this happens, you will no longer be charged an annual Management Fee by the Council and any Estate Service Charges will be billed to you directly.

+ Do I need to pay rent on the part I don’t own?

Benefits include lower upfront costs and a way onto the property ladder. There are further benefits if the Shared Ownership property falls under the 2021-26 Affordable Homes Programme, such as a subsidy from the Housing Provider for essential repairs. Some risks include leasehold responsibilities and limited flexibility in selling.

+ Can I decorate or renovate the property?

You can decorate the inside of the property freely unless the lease states otherwise. For major renovations, you’ll need permission from the Council, and potentially the Management Company for the Development.

+ What happens if I want to sell my share?

You can sell your share, but you will need to follow the resale conditions in your lease. Specifically, the Council plays a key role in the initial resale process so it is important to contact the Council if you are thinking of selling your share, so that the correct procedure can be followed.

The Council is given a nomination period, typically 4, 8 or 12 weeks depending on the lease to find a buyer for your share. Any buyer found must be approved by the Council and must meet the Shared Ownership eligibility criteria. If no buyer is found within the nomination period, you are usually free to sell your share on the open market, but the buyer must still meet the Shared Ownership eligibility criteria.

Page 8 of 9
Next Page > < Previous Page
Also in this section