Shared Ownership FAQ's
Do I need a deposit to buy?
Typically a deposit is required but it is only a percentage of the share of the property being bought, making this far less than with a traditional outright sale. The minimum amount is usually 5% of the share your purchase dependent on your mortgage lenders requirements. For example a property worth £165,000 full price, with a share price of 40% at £66,000 - 5% deposit of £66,000 would be £3300. There are some lenders offering 0% deposit mortgages, please discuss this with a mortgage advisor.
Am I sharing my property with someone else?
Definitely not, you simply purchase a share in the property and Fortis Living own the remaining share that you do not own.
Are the properties Leasehold or Freehold?
Shared Ownership properties are leasehold. You can acquire the Freehold of a house (not apartments) once you have staircased to 100%.
How does staircasing work?
To staircase, which means to purchase additional shares in the property, increases your ownership of the property and reduces your rental payments. You do not have to do this if you do not wish to, the option is yours. We arrange for an independent valuation of your property to ascertain the current market value and advise you of the new share price. You can staircase in stages or in one go. Most of our properties can be staircased to 100%.
Who maintains the property?
Shared ownership gives you the same responsibility as owning your own home outright but at a reduced cost. You will have the benefit of the warranty we have with the developer, typically for 12 months depending on when you complete on the property. You're then fully responsible for repair and maintenance. You will have a 10 year build warranty to cover structural elements with the NHBC or similar.
What happens if I want to sell my shared ownership property?
If you own less than 100% and want to sell your share, you will need to contact us to arrange for the property to be valued at a cost of £150, this is to ascertain the current value of your property. Your buyer may be able to purchase 100% of the property rather than a share with a process called "simultaneous staircasing". Once you have a buyer, we will ask them to complete an application form to check their eligibility and if they can afford the property. We have to agree to the purchase and approve the buyer's mortgage if they are purchasing a share.
If you have staircased and now own 100% of your home, you are the freeholder (or leaseholder in the case of an apartment) so you can sell the property on the open market.
How do I apply?
Have a look at the properties for sale on our website and either download and complete our application pack from the listing or register your interest for a scheme coming soon.