Matthew Walsh    

As a manager here at PLS, I often speak to clients who are unsure about what a Shared Ownership re-sale is and how it works. Buying or selling a Shared Ownership property can feel daunting, but with the right guidance, it doesn’t need to be complicated. In this article, I’ll walk you through the essentials of Shared Ownership re-sales, covering both selling your share and purchasing a share in a re-sale property.

What Is a Shared Ownership Re-Sale?

A Shared Ownership re-sale happens when the current owner of a Shared Ownership property decides to sell their share. Instead of buying directly from a developer, a new buyer takes over the share from the existing owner.

It’s important to remember that this is still a Shared Ownership transaction. You’ll need to follow the same process as you would with a brand-new Shared Ownership home, including applying through the housing association and meeting eligibility criteria.

Selling a Shared Ownership Property

If you own a Shared Ownership home and want to sell your share, there are a few key steps:

1. Obtain consent – You must get permission from your landlord, as stated in your lease.
2. Valuation – The housing association will arrange for a valuation to determine the correct price for your share.
3. Marketing – Once the valuation is agreed, your property can be marketed to potential buyers.

This process ensures that the property is fairly priced and that new buyers meet the eligibility requirements. At PLS, our specialist team supports sellers through every stage, making sure the legal process is handled smoothly and efficiently.

Buying a Shared Ownership Re-Sale Property

For buyers, the process of purchasing a re-sale property is very similar to buying a brand-new Shared Ownership home:

• You’ll need to apply to the housing association.
• You must meet the eligibility criteria, which are set out on the GOV website.
• Once approved, you’ll go through the same conveyancing process as any other Shared Ownership purchase.

The advantage of buying a re-sale property is that you’re purchasing a home that has already been lived in, which often means the property is already decorated, furnished, and part of a thriving community.

Why Work With PLS?

At PLS, we have a dedicated team that focuses solely on Shared Ownership and Re-Sale transactions. We understand the unique requirements of these sales and purchases and can guide you step by step. Our goal is to make the process as clear, stress-free, and efficient as possible for both buyers and sellers.

Whether you’re moving on to your next home or getting onto the property ladder for the first time, our team is here to help.

Shared Ownership re-sales are a fantastic option for both buyers and sellers. They provide affordable access to home ownership while offering sellers a structured way to move on. With the right legal support, the process can be straightforward and stress-free.

If you’re considering buying or selling a Shared Ownership re-sale, get in touch with our team at PLS today. We’d be delighted to help you on your property journey.

The post Shared Ownership Re-Sales: A Manager’s Guide to Buying and Selling appeared first on PLS Solicitors.

In the 12 months to August 2023, private rental paid by tenants in England and Wales rose by 5.4% and 6.5% respectively with London experiencing the highest annual percentage change at 5.9%.

The Challenges of the Rental Market

Renting has long been a popular choice for those who value flexibility and want to avoid the responsibilities associated with homeownership. However, in recent years, the rental market has undergone significant changes, and many renters are facing multiple increases in rent prices.

The main concern with rental is its unpredictability and, depending on the rental agreement, tenants often have little control over these changes. This uncertainty can make it challenging for renters to plan for their future. Recent changes in landlord tax, income and mortgage rates have led many private landlords to exit the industry, decreasing the number of rental properties available nationwide.

When buying a home – how much do I need to save?

The first thing you need is a deposit.

• 10% for standard mortgage products
• 5% on some mortgage products but often means higher interest rates
• 15% for wide availability of rates and lenders

The Land Registry data from July 2023 shows the average UK property price to be £289,824. This varies region to region but provides a good understanding of what savings are required to step onto the property ladder.

• A minimum 5% deposit – £14,491
• 10% deposit – £28,982
• Ideal 15% deposit – £43,473

It is important to note that there are additional costs involved in buying a home – for example Searches and Stamp Study Land Tax.

Stuck on the jargon? Check out our blog which simplifies all the wording involved in buying a home.

Shared Ownership: The Facts and Figures

Shared ownership provides an alternative to renting and full homeownership. This government scheme allows individuals to purchase a share of a property while paying rent on the remaining portion. Here’s how it works:

Initial Investment: A percentage of the property is purchased, rather than the full amount, the usual minimum is 10%, and the maximum is 75%. For this, a deposit is still required on this portion, along with a mortgage agreement for the value of the percentage being purchased.

Monthly Costs: In addition to the monthly mortgage payments on the share they own, participants pay rent on the remaining share, typically to a housing association. This rent is often set at below-market rates.

Gradual Ownership: Over time, shared ownership participants can increase their share in the property through a process known as “staircasing.” This means that as their financial situation improves, they can gradually buy more of the property until they eventually own it outright. Terms of purchase will be laid out in the lease, more details on this can be found on the .gov website, here.

For full details, please click here.

Security in Living Arrangements

One of the advantages of shared ownership is the sense of security it provides. Unlike renting, where leases can be terminated with little notice, shared ownership participants have a long-term stake in their home. This stability can allow individuals and families to put down roots, build a sense of community, and plan for their future with confidence.

Shared ownership often includes maintenance and repair responsibilities shared with the housing association. This means that homeowners won’t face unexpected repair costs that can be a burden for traditional homeowners.

How PLS Solicitors Can Help with Your Shared Ownership Purchase

As the Best Law Firm for Conveyancing 2023 – First Time Buyer Reader Awards, our team are experts in guiding first-time buyers through the intricacies of buying their first home. 10% of all our transactions involve Shared Ownership. Our extensive collaborations with numerous housing associations position us to advise you quickly, with the knowledge and experience to navigate any complexities with ease.

Contact us today to talk about your shared ownership purchase.

The post Renting vs. Shared Ownership: Bridging the Affordability Gap for Homeowners appeared first on PLS Solicitors.

As Best Law Firm for Conveyancing, awarded by the First Time Buyer Reader Awards, PLS Solicitors will offer expert advice on shared ownership, ensuring attendees to the show are well-equipped with essential knowledge to make informed decisions.

The London Home Show, taking place on 23^rd September at the QEII Centre in Westminster, marks its 10th year as the leading event for prospective homebuyers in the capital and the Home Counties. Following the success of the spring event earlier in April 2023, which saw over 4,800 potential purchasers in attendance, this autumn edition promises to be even more valuable for those embarking on their homeownership journey.

At the London Home Show, first-time buyers will find a wealth of resources and support to navigate the complex world of property acquisition. Whether you’re just starting out and feeling overwhelmed or ready to embark on the house-hunting adventure, this event has something for everyone.

Along with our expert team, you can expect to see national exhibitors, including housebuilders, financial providers, and everyone in between. It’s the go-to event for homebuyers in the region.

Discover new homes, shared ownership, affordability options and pose your questions in Q&As with the experts.

The London Home Show is a free event, running from 10 am to 5 pm. However, please note that it is a ticket-only event, so be sure to register in advance to secure your spot. Click here (LINK) to register.

Event Details:

Date: September 23, 2023

Time: 10:00 am – 5:00 pm

Location: QEII Centre, Broad Sanctuary, Westminster, SW1P 3EE

We look forward to seeing you there!

The post Get expert advice and start your home buying journey at the London Home Show appeared first on PLS Solicitors.

As the Help to Buy scheme draws to a close, many first-time buyers are concerned about how they will get on the property ladder without any additional help. The good news is that, while Help to Buy winds down, a new government initiative is ramping up.

It’s called First Homes, and it’s designed to help first-time buyers reach their property dreams – with priority given to key workers and armed service personnel.

If you’re eligible for this initiative, you’ll be able to purchase a new property with a 30 – 50% discount on the market price. Putting this into practice, if a new build’s market value is £350k, you could purchase it with a 30% discount at £245k!

Below, we’ll answer some frequently asked questions about the First Homes scheme, so you can decide if it’s right for you. 

What is the First Home scheme? 

The First Homes scheme is a blossoming government initiative that provides discounted new-build homes to first-time buyers in England. It aims to help people purchase properties in their local communities instead of being priced out of the market. 

As a result, these homes are sold at a discounted rate of at least 30% compared to the market price. Local councils can choose to set deeper discounts in their area (of up to 50%) if property prices in the area are very high.  

To ensure the First Homes scheme is accessible to those who need it most, the government has put a price cap on these houses. After the discount, properties must cost less than £420,000 in London and £250,000 anywhere else in England.

Who is behind the First Homes initiative, and who pays for the discount?

The government is collaborating with property development companies across the country to make First Homes a reality. 

The scheme isn’t new, exactly. It was initially launched in June 2021 and piloted in the West Midlands, Staffordshire and Durham. These pilots proved a success, and looking to 2023, the scheme is set to accelerate across the country.  

The initiative in your community will be run by your local authority, which is responsible for working with property developers, setting the discount price and reviewing applications. 

The discounts are primarily funded by the property developers involved. They have to build a certain number of affordable homes to meet their planning agreement metrics. First Homes will help property developers to meet these targets. 

It’s important to note that the deductions applied aren’t one-offs either. The government wants this scheme to help generations of first-time buyers. As a result, when the property is re-sold, it will keep the percentage discount compared to the market value. 

Are First Homes different from regular new builds? 

Not at all! These houses are designed specifically to be comfortable first homes for new homeowners and are to the same specification as other new builds, even though they are sold at a discount. 

How much deposit do I need as a first-time buyer?

You will need a minimum of a 5% deposit to participate in the scheme. So, if a First Home is sold for £240,000, you’ll need a minimum deposit of £12,000.

Many leading lenders have agreed to 95% loan-to-value mortgages for the scheme, including:

1. Chorley Building Society

2. Darlington Building Society

3. Halifax

4. Leeds Building Society

5. Mansfield Building Society

6. Nationwide Building Society

7. Newcastle Building Society

What about the Help to Buy scheme in 2023?

The Help to Buy scheme officially concludes in March 2023, and applicants must submit their applications by the end of October. 

All is not lost, however! The First Homes scheme is a promising way for first-time buyers to get onto the property ladder, another fantastic option is Shared Ownership. 

Who is eligible for the First Homes scheme?

Properties in the programme are only available to first-time buyers who live and work in the local area. Local councils will also give preference to key workers and members of the armed forces.

You are eligible for the scheme if you: 

• Have an annual income of less than £80,000 (£90,000 in London). Note, if you plan to buy with a partner, your combined annual income must also be less than this, and you must both be first-time buyers.
• Want to remain in your local area but are struggling to identify a property within your price range. 
• Can obtain a mortgage for at least 50% of the purchase price after the discount. 

How do I apply for the First Homes scheme? 

Navigating the property process as a first-time buyer is undoubtedly daunting, but we’re here to help you every step of the way.

Here’s what happens when you buy a First Home: 

Step 1: We recommend you secure a mortgage in principle, which you’ll need to reserve your property.

Step 2: Keep an eye out for First Homes sites near you – or get in touch with us, and we’ll tell you about the latest houses in your area and check your eligibility. 

Step 3: When you find a property you like, we’ll help you reserve it with the house builder. They’ll then review your eligibility against the local criteria. 

Step 4: Once your eligibility is confirmed, it’s time to complete your application for the local authority.

Step 5: Now that your application is approved, we will receive an Authority to Proceed and Eligibility Certificate from your local authority on your behalf. 

Step 6: At this point, it’s time to formally submit your mortgage application and let us work on your purchase, so you can exchange contracts and officially buy your first home! 

What should I do next? 

If you’re interested in the First Homes programme, contact us today. We are here to guide you through every step of the process and turn your homeowner dreams into a reality! 

The post What is the First Homes scheme? appeared first on PLS Solicitors.

We Took 5 Minutes to Chat to Karl Nicholson, Chair of the British Para Ice Hockey, GB Men’s & Women’s Programmes about his many years involved with the game, what to look out for in the coming months, and how women are stepping up to play a bigger role in the sport…

Karl, you are the Chairman of the BPIHA, the Captain of the Manchester Mayhem Para Ice Hockey Club, an Assistant Coach with both the Men’s & Women’s programmes and currently a GB Men’s player, so you are most definitely an expert! Tell us about your journey into the world of Ice Hockey and how you started out…

It’s been a long journey, 25 years in fact. I started as my athletics coach kept badgering me to come and try the sport. I pretty quickly fell in love with how tough the sport is to master and my joy of playing a team sport.

The British Para Ice Hockey Association (BPIHA) is the sport’s National Governing Body in Great Britain, tell us more about the Association…

The Association was set up back in the mid 80’s, back then it was known at the British Sledge Hockey Association (BSHA). The Association is pretty much responsible for all aspects of the sport, from everyday admin to the domestic league and the GB programs we have, as well as sourcing funding and sponsorship deals. Given the women’s game is no hitting, we’ve been in contact with other leagues around the world who are also co-ed and we have just added in some new rules to facilitate the expanse of more women playing in the league this year. On top of this we are also discussing where new teams can be supported so the league continues to grow. There are also some discussions with the sports stakeholders to help a behind the scenes about how this will look and be implemented.

Talk us through the National League and the GB National Programme and how they work…

Given the demand for ice time at every rink, the domestic league runs between May and September. We sit down ahead of this will all the clubs to discuss changes that we want to implement.

As for the GB programs, we are mostly hands off once we appoint a head. Obviously, we are kept in the loop on how the squads are progressing, but the Association is mostly responsible for looking to bring sponsors, or funding, for those programmes.

What are you most looking forward to in the coming weeks and months?

After 2 long years the resumption of the domestic league.

What would you tell anyone who was looking to get involved with the sport?

If you enjoy a physical challenge and want to constantly be challenged, you should seek out your nearest club.

Where do you see the sport, and yourself in five years’ time?

Five years from now we will have a women’s team playing at the para’s, as for me I’ll be retired, hopefully on a beach somewhere!

I’d like to add that without the continued support of PLS, the sport and the GB programs we really wouldn’t be where we are right now, and I really would like to express not just mine, but the head coaches of each programmes, gratitude.

The post PLS support the Manchester Mayhem Para Ice Hockey Club appeared first on PLS Solicitors.

Our experienced property specialists pride themselves on meeting their clients’ needs and are perfect guides for those embarking on a home-buying journey with any of the UK’s shared ownership providers.

Why Shared Ownership?

Shared ownership is the middle ground between leasing and purchasing a home, and one of the most affordable alternatives to renting. In a scheme of this type, you’ll buy a share of between 25-75% in a new build or resale property. As a result:

• You’ll pay a smaller deposit.
• Your monthly mortgage payments will be reduced (as you’ll only pay them on the portion you own).
• The rent you’ll pay on the remaining unowned share will likely be below market value.
• You’ll have the opportunity to purchase the remainder of your property over time.

To be eligible for a shared ownership scheme, you’ll need to be either a first-time buyer or someone who doesn’t currently own a home.

Meet Your PLS Buddy

Shared ownership contracts can be confusing to navigate, particularly for first-time buyers unaccustomed to the legal jargon associated with securing a home.

For example, many shared ownership schemes offer “staircasing” – a means to purchase the entirety of your home over time and one of many clauses and considerations that add to the complexity of completing a purchase.

At PLS, we make the complicated simple – by offering step-by-step support and advice throughout; from securing a mortgage to completion.

You’ll be given a dedicated client relationship manager – known as a ‘PLS Buddy’ – who will advise you on:

• The meaning of any documentation that needs signing.
• The deadlines for completing paperwork.
• Any queries (technical or otherwise) you may have along the way.

Choose PLS For 24/7 Case Updates

Our 24/7 PLS Portal is a valuable tool that allows you to:

• Easily track the progression of your case.
• Receive instant updates on the go.
• Get in touch with your legal team.
• Safely and instantly exchange documents.

Plus, if you have an Amazon Alexa at home, our integrated askPLS app (available on the Amazon Skill Store) can deliver case updates via your virtual assistant.

Combine these technologically advanced solutions with your PLS Buddy and keeping up to speed with a property purchase has never been so easy.

Add being on every lender panel and our ability to provide a quote seven days a week in to the mix and PLS are the obvious choice for those looking to take their first step on to the property ladder. 

The post Fed up of renting? appeared first on PLS Solicitors.

Shared ownership is one of several alternatives to renting, and it can enable first-time buyers to climb the property ladder more quickly and more affordably. As you dive into shared ownership and all the ways it differs from traditional ownership, these definitions will help you navigate the waters…

1. Shared ownership
   Shared ownership occurs when you purchase a share of a property and pay a mortgage on this share. You then pay rent to a housing association or landlord on the remaining share of the property. The percentage of your home that you own will vary from property to property.

2. Leasehold
   Unlike in a shared ownership situation, you are the sole owner of the property if you purchase a leasehold. But, unlike in a freehold purchase, the land on which your property is built is still owned by the freeholder. You purchase a lease period for the property – often a long-term period as high as 999 years – and this can be extended at a later date.

3. Service charge
   The service charge is a set amount of money that you’ll be required to pay towards the upkeep of communal areas surrounding your home. It often applies to blocks of flats and apartment complexes. This is usually applicable to both shared ownership properties and leasehold properties.

4. Mortgage
   A mortgage is a contract entered into with a lender, in which money is borrowed to fund a property purchase. Documentation will detail how much you’ve borrowed, how much you’ve agreed to pay back, and in what timeframe you’ll do so.

5. Exchange
   Exchange of contracts is a hugely important step in homeownership. It’s the stage at which both buyer and seller sign a legally binding document that enables them to complete the transaction. Often, this process will be conducted via a swap of signed contracts between two legal firms, followed by the transfer of a deposit from the buyer.

6. Exchange timeline
   The exchange timeline of a property purchase is the amount of time that a buyer and seller have to do the above: Exchange contracts. It’s a deadline that must be adhered to once set. For example, a typical exchange timeline for a new build is between three and four weeks.

7. Resales
   If a shared ownership property is placed back on the market after purchase, it is considered a resale. Buyers considering shared ownership will be able to choose between resales and new build options.

8. Staircasing
   Staircasing is a process by which you can buy further shares in your shared ownership property, raising the percentage of it that you own until you reach 100%.

9. Housing association
   A housing association is an independent, not-for-profit body that enables people to get on the property ladder. Often, housing associations are on hand to provide people with low-cost housing alternatives and options.

10. Eligibility
    Defined as ‘the right to do something’, eligibility in the context of shared ownership means that you can purchase a property through this scheme. Criteria include being at least 18 years old, with an annual household income of less than £80,000 (or less than £90,000 in London) and no other owned properties.

11. Searches
    When you’re in the property purchasing process, a ‘search’ will be commissioned by your solicitors. This is a check on local authority records that brings up information on whether there have been any planning applications or land charges on your home. Other searches can also be conducted, such as environmental searches, and your solicitor will advise as to which should be conducted in your specific case.

12. Completion date
    Inarguably one of the most exciting, important dates to put in the diary once you decide to buy a home via a shared ownership scheme. The completion date is the date on which the remaining balance of the purchase is processed to the seller via your solicitor. Once the funds have been received, you’ll be able to pick up your keys.

13. Affordability
    This is the amount that you can reasonably afford to spend on your home, taking income and outgoings into account.

14. Vendor
    A vendor is another name used to describe the seller of a property, whether this is a housing association or an individual developer.

15. Conveyancing 
    This is an umbrella term used in law to describe the transfer of a property’s ownership from one person to another.

16. Deeds
    Deeds are legal documents that come with your property, defining ownership and boundaries. You will receive the deeds after your completion date.
    

With years of experience in property law, we’re able to offer extensive knowledge and advice if you’re looking for support. 

Contact us today to talk about shared ownership and how it could work for you.

The post Busting the jargon: understanding shared ownership appeared first on PLS Solicitors.

Promising an odds-on chance of a double pay out – namely having a place to call home and a near-guarantee of a return on investment – taking a punt on property is as close to gambling sensibly as you can get.

In some parts of the country, however, it is a wager only available to high rollers.

There remains a discernible North-South divide when it comes to valuations and even within specific towns and cities property prices are seemingly fortune to a postcode lottery. 

For those would-be buyers “lucky” enough to be based in areas deemed desirable by overseas investors or sought-after by second homeowners, tabling a deposit big enough to secure a sale on the open market is beyond the reach of most.

In such hot spots, it is no surprise that Shared Ownership is increasingly emerging as a clear favourite among those looking to take a first step onto the property ladder.

The scheme, a middle ground between renting and buying outright that offers the opportunity to purchase a share – usually between 25 and 75 percent – in a new-build or resale property, significantly lowers the stake money needed to enter the game.

Open to first-time buyers and those who do not currently own a home, Shared Ownership is certainly a sensible each-way bet given the smaller deposit required and that monthly costs are generally reduced by virtue of only paying a mortgage on the share owned and a below-market-value rent on the remainder. 

The option to buy more shares through a process known as stair-casing also affords those using the scheme control over their domestic destiny, ensuring they have the opportunity to ultimately benefit from the same dividends enjoyed by those purchasing a property conventionally. 

Although its pros are plentiful, Shared Ownership also has its share of cons to be mindful of and appointing a law firm savvy to the product and with a proven track record of conveyancing is key to avoiding aspiring homeowners from falling at the first hurdle. 

Property specialist PLS Solicitors has such a pedigree and is adept at bringing clarity to the terms of leases, such as advising on permissible structural alterations, and carrying customers safely and swiftly to the finish line.

Instructing the innovative law firm also guarantees a smooth ride throughout as its team are focused on saddling the stresses associated with a house move.

Indeed, the company can spring into action while the competition remains under starter’s orders. Negating the need to hunt down a property specialist on the high street or search for legal representation online, PLS has partnered with an array of homebuilders to provide owners-in-waiting with a quote at the point of sale.  

With the click of a button and courtesy of PLS’ easy-to-use app, customers can access and sign forms and submit proof of identification via their phones within minutes of picking a plot and before even leaving a development’s marketing suite. 

The company’s embrace of robotic process automation means previously time-intensive searches and Land Registry checks can begin almost immediately and its askPLS tool enables case progress and mortgage status to be tracked using an Amazon Alexa smart device. 

Although PLS’ exploitation of technology has enhanced the efficiency, visibility and security of its conveyancing services, the company has not turned its back on traditional practices. Its experts are ever-ready to provide a reassuring voice of support if required, with all customers given a dedicated team leader with whom to discuss any legal jargon, concerns or issues.

Allowing PLS to take the reins on a Shared Ownership purchase stacks the odds of a trouble-free transaction firmly in a prospective buyer’s favour and is an insurance policy against any future headaches. In brief, why back a long shot when it comes to the legal aspects of your move when there is a thoroughbred in the race? 

The post Thinking of getting on the property ladder with Shared Ownership? appeared first on PLS Solicitors.