Buying a Shared Ownership resale property?
Resale properties are homes that a current owner bought through Shared Ownership and now wishes to sell on. The principle is the same as buying a new build through Shared Ownership but you must purchase at least the share that the seller currently owns.
The benefits of buying a resale property
Within new build developments, Shared Ownership is usually only available to people living or working in the borough where they are looking to buy. But that's not normally the case with resale properties, which makes moving to a new area simpler.
We often sell our new build properties ‘off-plan’, i.e. before they are finished. With resales you can view the property you are looking to buy a share in and moving in to a development where the neighbours are already moved in and set. A resale property is a Shared Ownership property that the current owner bought new from us or as a resale. The property is a part buy/part rent scheme. The property would have been partly funded by the government and aims to help first-time buyers. Shared Ownership properties are designed as a stepping stone to completely owning your own home, allowing you to buy as much as you can afford when you can afford it.
Buying a resale property makes you an owner-occupier, not a part tenant. You are buying at least the current owner’s share on the existing lease. Your lease is a legal document that proves you own part of your home. Your lease sets out certain conditions such as:
How often your rent and service charge is reviewed
The conditions of the lease which must be adhered to
The conditions regarding selling or buying further shares
What you should expect from us and
Your rights and responsibilities as owner-occupier
As you own a lease on your property you will be a ‘leaseholder’ and we’ll be what is known as the ‘landlord’. You will have the same rights and responsibilities as a full owner-occupier.
A resale property is a Shared Ownership property that was previously purchased and is now available for sale by the current owner. As a potential leaseholder you can also read about cladding and new guidance around fire safety in residential buildings here.