Milton Keynes Shared Ownership Property
Milton Keynes is a fast and growing “New City” with many people wanting to move to the area. Property in Milton Keynes is so sought after, this has resulted in many people being unable to afford to purchase homes outright.
In the 1980’s Milton Keynes Development Corporation and the Council introduced shared ownership properties to help those who could not afford to buy a home outright. Through the shared ownership process people buy a share of the property and pay rent on the remaining share they do not own. This allows people to get a foot of the property ladder and gradually, they may buy further shares and can eventually own their home outright.
How Milton Keynes shared ownership property works
The home owner owns the lease of part of the property and the Council or Housing Association owns the freehold.
The shared ownership purchase scheme has restrictions in place to prevent individuals and organisations from owning more than one shared ownership property and using them for a letting business. Therefore, every purchaser needs to apply for consent to purchase from the Council or Housing Association before proceeding with a shared ownership purchase. If a mortgage is required, this will also require approval before the property is able to be purchased. It can take some time to seek approval which lengthens the buying process.
Selling a Milton Keynes shared ownership property
When the times comes to sell the property it can be a complex process depending on the share owned. Under the provisions of the shared ownership lease, all home owners are required to obtain consent from the Council or Housing Association before selling the property and usually there is a nomination period, on average 28 days, allowing the Council or Housing Association to sell to applicants waiting for a shared ownership property to become available to purchase. If the property is not sold this way, then the home owners are allowed, after the nomination period has expired, to sell via an Estate Agent.
Purchasing a Milton Keynes shared ownership property
Many new developments within the Milton Keynes area do allow for social housing and offer a number of houses/flats on the shared ownership scheme to be purchased. On average the share being sold is 30%, so this will be the part owned by the home owner and rent would be paid on the remaining 70% owned by the freeholder. Within the rent paid would include building insurance and therefore home owners are only required to insure the contents.
Help with Milton Keynes shared ownership property
Tollers Milton Keynes conveyancing team are experts in dealing with the legal complexities around Milton Keynes shared ownership properties. Talk to Tollers call 01908 396230
Offices mentioned: Milton Keynes Office