Buying a Shared Ownership Resale Property
Buying a resale is very similar to buying any other shared ownership property, except there are some additional information you would need to know before purchasing a resale.
Purchasing a resale property is much like buying any other shared ownership home, but there are a few extra details you should be aware of before making your decision.
Where to find our resale shared ownership properties
We advertise our resale properties here and in sharetobuy.co.uk where you can register your interest in specific properties.
Love Living Homes are not the seller of these properties, the condition and repair of the property or its services and appliances within the demise are not assessed or tested by Love Living Homes. Any buyer(s) should satisfy themselves by inspection and/or you may wish to arrange for your own independent survey before purchase. Leaseholders are responsible for all repairs within the property's demise.
There are some key factors that are different for resale properties.
Eligibility
Shared Ownership is a government backed scheme which has been operational for over 30 years. You can buy one of our Shared Ownership properties if you qualify for shared ownership.
You can buy a home through the shared ownership scheme if you cannot afford all of the deposit and mortgage payments for a home that meets your needs. You buy a share of the property and pay rent to a landlord on the rest.
There are different rules on shared ownership depending on where you live. Love Living Homes operates within Kent and East Sussex and have updated the eligibility critera on our dedicated shared ownership page.
Buying a resale is no different to buying any other shared ownership property, you must:
- Pay rent to Love Living Homes for the share we own
- Pay a monthly service charge, for example towards the maintenance of communal areas, buildings insurance etc.
- There may be additional charges depending on the development (e.g. sea wall contributions)
Mortgage Offers
We encourage buyers to check that their chosen solicitor is on your lenders approved panel to avoid delays and extra cost. Mortgage offers must include the following information:
- Note that it is a Shared Ownership property
- The percentage you are purchasing
- The purchase price must match the full market value noted in your mortgage offer
- The remaining lease length
If the lease length is not stated on the mortgage offer it may be necessary to provide supplementary information such as a side letter from your lender or the mortgage valuation report if the correct lease length is noted.
Mortgage offers have an expiry date and this may expire before the property is ready for you to move in, particularly were there have been delays, in this situation you would need to extend, renew or reapply and this may incur additional costs.
Mortgage consent
We will be required to approve your mortgage via a consent to mortgage signed document, once approved your solicitor will be informed this is held on file and the document will be released to them following completion
Fire Safety Checks
If you are purchasing a flat that is in a building over 18m in height (six storeys), it is likely that an EWS1 form will be required if you need to take out a mortgage. The mortgage surveyor will normally request this after carrying out their valuation. The form will need to be instructed by the building owner which may be Town & Country Housing, or a managing agent acting on behalf of the freeholder and is used to assess the external wall system in terms of fire safety. It involves a suitably qualified professional carrying out a survey of the building.
Due to the specialist nature of the test, these can take some time to organise and may cause delays to your purchase. If you have any concerns, please check with Love Living Homes before proceeding as to whether an EWS1 form has already been completed or if there are any known problems with obtaining one. Some lenders may ask for this form on buildings below 18m in height and we will make reasonable endeavours to provide you with the relevant information, but it may not always be available, particularly where we do not own the building in question.
What is an EWS1 form?
Whether you live in a block of apartments or are considering buying one, the chances are you will have heard of an EWS1 form. An EWS1 form is a method of assessing and recording the external wall construction of residential apartment buildings. It establishes their safety in relation to government guidelines, and is designed to give a clear verdict of that safety
Buying Shares
One of the main differences in buying a resale is the minimum share you can purchase is the number of shares the current shared owner/s owns.
However, depending on your affordability, and in line with current Homes England advice, you will be encouraged to buy the maximum affordable share percentage.
If you wish to own your home outright in the future, you can do so in stages or in one go. This process is called Staircasing. Love Living Homes will be on hand to help you through the process, if or when you decide to do so.
There is no obligation for you to buy additional shares after your initial purchase, unless you want to. The full market value is assessed via a RICS surveyor and is based on the current condition and remaining lease length of the property. The price is fixed and non-negotiable
Free Guide
Read our Staircasing Guide
Viewings
It is not possible to reserve a property without a confirmed viewing.
The Lease
When you purchase a resale Shared Ownership property, you are being added to an existing lease and are agreeing to the terms set out in this lease.
The lease term will have started when the first shared owner purchased the property, and you should be aware of the length of the remaining term of the lease. The initial lease term may have been between 99 years – 990 years. Extending the lease in the future can be expensive.
Your solicitor will be provided with a copy of the lease for the property you are buying, the lease contains covenants which outline restrictions that may be applied to the property such as parking restrictions, some leases do not allow for commercial vehicles to be parked on your property or in the wider neighbourhood.
Costs Involved
When buying a resale property, it's important to understand the various costs involved.
In addition to the price of the share you’re purchasing, there may be other expenses such as legal fees, valuation costs, and potential service charges. These costs can vary depending on the property and the terms of your shared ownership agreement, so it's essential to budget carefully and be fully informed before committing to your purchase.
All fees are subject to change/update and your solicitors will advise the final fees and what is required ahead of buying the property.
| Costs | Description |
|---|---|
| Valuation/Homebuyers’ survey fees: £350-£900 |
Your mortgage lender will charge a fee for instructing a chartered surveyor to carry out a valuation report on their behalf. If the property you are purchasing is over ten years old, we recommend having a homebuyers survey carried out as this is a much more detailed report. |
| Solicitors’ costs: approximately £2000 (estimate) | Your solicitor will charge you a fee for their professional services. Usually, you should expect to pay an up-front amount to enable your solicitor to proceed (approximately £200), with the remainder payable upon completion of the purchase. You should always get a quotation prior to instructing a solicitor. |
| Deed of covenant: £300 | You may be required as the purchaser to enter into a Deed of Covenant. This binds you to the terms of the lease. Your solicitor will confirm if this applies to your purchase. |
| Stamp Duty Land Tax (SDLT) | This is a government tax that is payable when someone buys a property. Your solicitor will be able to tell you if the tax applies and how much it will be. We are unable to give advice on stamp duty queries.
Stamp duty is normally only payable on a resale property where the value of the share exceeds the minimum threshold:
Stamp Duty rates will change from 1st April 2025 as follows:
Please note that if duty is not paid on your purchase now, there may be a requirement for you to pay in the future if you either staircase above 80% or sell 100% on the open market. Your solicitor will be able to advise you further. If you are purchasing a property that was previously rented by Town & Country Housing and a new lease is granted, you will have the option of paying duty against the share value or the whole price. Your solicitor will advise. |
| Arrangement fees: £0 - £1000 (variable) | Your mortgage advisor will give you more information about the costs associated with the mortgage. Your lender may charge a fee for arranging your mortgage. This varies depending on the mortgage option you choose. These fees are payable to your mortgage lender/ advisor. The mortgage arrangement fee can only be added to your mortgage if the total borrowing is less than the share value. |
| Notice fees: £84 per notice | Your solicitor will need to serve a legal Notice on Love Living Homes to confirm the change of ownership and to register your mortgage following completion. Additional fees may be payable to a managing agent. |
| Advance rent and service charge | On completion, Love Living Homes require this to be paid from the date of completion to the end of the month plus one full calendar month. This allows time for a direct Debit mandate to be set up to take regular monthly payments. |
| Removal costs | Hopefully, family and friends can help. If you are going to use a removal company, make sure you get a number of quotes as costs can vary enormously. You usually pay this on the day you move. All prices are approximate, this is a guide and buyers should look into their own costs. |
| Rent reviews | The Review Date is set out in the ‘Summary of costs’ document and in your lease. Your rental amount can fluctuate as per the conditions of your lease. Your rent will increase every 1st April, regardless of where you are in the sales process (e.g. this could be before you exchange contracts). Please see our rent review page for more information |