Guest blog: The shared ownership legal process

July 22, 2024 | Laura Whittle

If you are planning to buy your first home through shared ownership, you might not be too familiar with the legal process and the steps you need to take to make sure your journey to homeownership is a smooth one.

The conveyancing process for shared ownership can be more intricate than standard conveyancing, simply because there a more parties involved, so it is important you choose a solicitor who is experienced in shared ownership conveyancing.

Take a look at this guest blog by AST Hampsons Solicitors, which outlines the process to give you a clear idea of what needs to be done before you get your keys.

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A solicitor is crucial in the shared ownership buying process. A solicitor who deals with new build properties will be able to advise you on any pitfalls and obligations that you may not be aware of.

During the conveyancing process, your solicitor will:

We understand that a property purchase may be the single biggest purchase you ever make and so we are here to offer support and guidance from the day you agree the purchase to the day you move home.

1. Instruct your solicitor

You instruct us to act on your purchase by email or phone

2. Client care pack

We send you our client care pack which includes information and documents for you to complete (this can be sent digitally or by post). You need to complete and sign our Instruction Form, provide the requested evidence of identification and proof of funds and provide a payment on account.  Any missing information may delay your purchase.

3. Contact pack

We receive a Contract Pack from your Seller’s Solicitor. Once we have all of the above back from you and also the Contract Pack we will order your searches (to ensure there are no legal issues with the property or land and we will review the contract pack to examine the shared ownership lease and any associated agreements to ensure they are fair and legal).

4. Mortgage

Your lender will process the application submitted by your financial/mortgage advisor.  They may request further information from you.  They will also instruct a surveyor to visit the Site Office to carry out a valuation.  Once your lender is happy with the information supplied by you and the valuation, they will issue a mortgage offer to you.  We will also receive a copy of the offer as well as your lender’s instructions for us to act for them.  We work with your mortgage lender to manage the financial aspects of the purchase. On receipt of the offer, we will review it and report any requested information to your lender in accordance with their offer conditions. We will also need to obtain consent to your mortgage from the housing association

5. We report to you

Once we have received all of the above and your search results we will prepare a Report on Title explaining the main elements of the legal title for the property and search results.

6. Preparing for exchange

Once all of the steps above have been carried out we will need to arrange for you to sign the documents in readiness for exchange.  You may prefer to come into the office to sign or we can post documents out to you.  We will also provide you with our bank details for you to transfer your deposit to us (where you do not have a sale).

7. Exchange

Once we have your signed documents, your deposit and approval from your mortgage lender we will ring you take your final verbal authority to exchange. We will then exchange contract with your seller’s solicitor. This makes your contract legally binding

8. Completion

Once your property has been signed off as build complete, we will receive a Notice and will then set up a date for you to complete.  On completion you will legally own the property.  For completion we will arrange to draw down the funds from your mortgage lender and collect any final balance needed from you.

9. After completion

We will register your purchase with the Land Registry, HMRC (and pay your stamp duty) and NHBC. Once all has been completed we will send your Deeds to you.

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Using a solicitor experienced in shared ownership transactions is essential to ensure a smooth and secure buying process. They will help navigate the complexities and protect your interests throughout the transaction.

AST Hampsons are a long-established firm with offices in and around the North West of England. Our residential conveyancing team at AST Hampsons Bury and Rochdale offices collectively have over 110 years’ experience in dealing with property transactions. We have a dedicated team who specialise in shared ownership sales and purchase. Whether you’re a first-time buyer or looking to understand more about this affordable homeownership option, we’ve got you covered. For more information visit asthampsons.co.uk