Your Lease & Legal Obligations: What You Need to Know
When you buy a shared ownership home, you become both a homeowner and a leaseholder. This means your rights and responsibilities are set out in a legal document called a lease, which explains what you can do with your home, what you must ask permission for and how your relationship with your housing association works.
Look to your lease…Always
Many residents only look at their lease when they move in, but it becomes especially important when life circumstances change — whether you’re considering a remortgage, selling your home or planning to add someone else’s name to the property. It can also be used to identify what you can and can’t do within your home as a leaseholder, such as needing permission to alter your property[LB1] , own a pet or make garden alterations.
Understanding these obligations doesn’t have to be complicated. A shared-ownership lease is there to protect both you and the building you live in, and knowing the basics helps you make confident decisions later on.
Life changes can lead you to consider remortgaging, especially if you’re planning to staircase (buy more shares in your home). Remortgaging a shared-ownership property is possible, but you must obtain your housing association’s approval before proceeding. This is because the landlord still owns a portion of the property, and the new mortgage will need to be compatible with the terms of your lease. The process is usually straightforward once valuations and affordability checks are done, and your housing association will explain the steps required.
If you’re thinking about transferring equity — for example, adding a partner to the lease or removing someone after a separation — the same principle applies. You must request permission so the landlord can check eligibility, income and affordability in line with shared-ownership rules. This helps ensure the new owner meets the requirements for the scheme and protects both parties involved.
When a shared owner passes away, the property can still be inherited, as with any leasehold home. The lease does not end, and the beneficiary takes on the responsibilities of the lease, including rent on the unsold share and service charges. Executors or loved ones can seek guidance from the housing association to understand the next steps, and they may choose to sell the property or staircase, depending on circumstances. If you already own a home or are not eligible for shared ownership, you would not be able to own a shared ownership home. Citizens Advice has clear guidance on inheritance and leasehold homes that may be helpful[LB2] .
Lease extensions are another topic many shared owners ask about. As the lease length decreases, the property’s value and mortgageability can be affected, especially once the lease approaches 80 years. Extending your lease is possible and follows legal processes similar to other leasehold properties, often involving valuations and formal notices. LEASE provides detailed information about lease extensions and what to expect for costs and timeframes. Housing associations like Love Living Homes can guide you through their own process when the time comes.
Selling a shared-ownership home, known as a resale, is a key moment when your lease becomes important again. Most leases require you to give your housing association an initial period to find a buyer before you can list the property on the open market. This helps keep shared ownership affordable by giving other eligible buyers the first opportunity to purchase your share. A valuation will need to be carried out by a RICS-qualified surveyor, and the price of your share will be based on the percentage you own at the updated market value. Once a buyer is found, your solicitor and the buyer’s solicitor will follow the process set out in the lease to complete the sale.
Understanding your lease doesn’t mean memorising every clause, but knowing the essentials makes home ownership feel more secure. These obligations are in place to protect you, your neighbours and the long-term value of the homes.
If you ever need further clarity, housing associations like Love Living Homes offer guidance on topics such as staircasing, permissions and resales. If you’re considering your next step in the shared-ownership journey, you can explore available homes here.