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What is Shared Ownership?
Shared Ownership is where you can buy a percentage of a home, and pay rent on the share you don't own.
In this video, Jill, our Head of Sales, Lettings and Customer Care, explains how Shared Ownership works.
Shared Ownership with Karbon Homes allows you to buy a share of a property (usually between 10% and 75%) and pay rent on the remaining share.
Over time you can follow a process called staircasing, which is where you can increase your ownership of your home, even up to 100%.
We offer both new build and resale shared ownership homes.
Options for Shared Ownership
There are a couple of different options available to Shared Ownership customers.
Important Information
You may be able to buy more shares in your home over time. This is called staircasing.
Some Older Person's Shared Ownership (OPSO) homes may not let you buy extra shares in 1% amounts. If this applies to your home, we will check your lease and explain your options. We will also tell you how your staircasing options are different from the general Shared Ownership scheme.
You can find more information about staircasing further down this page.
Eligibility Criteria
To purchase a Shared Ownership home, you must meet Homes England eligibility criteria, which can be found on its website by clicking here.
All our homes are offered on a “First come, first served allocation policy” and customers must meet the minimum surplus income policy.
A link to the policies can be found here.
Buying more shares of my home
Staircasing lets Shared Ownership customers buy more shares in their home, usually reducing rent on the remaining share.
Depending on the lease, customers may be able to staircase up to 100% ownership. When you purchase more shares in your home, the rent you pay will also decrease.
How it works:
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Customers can buy more shares when they are financially ready.
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Minimum share amounts depend on the lease (usually starting from 10%)
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Some leases allow 1% purchases; others require larger amounts.
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Some leases limit the maximum ownership percentage.
To begin staircasing:
We will confirm the staircasing options available under your lease
You need to obtain a current valuation through an independent RICS surveyor. This is applicable when buying shares of 5% or more.
You need to speak to your lender or independent financial advisor who will confirm if the additional purchase is affordable for you
Complete the legal process, we will contact your solicitor with the memorandum of staircasing
Your solicitor carries out the legal work and we will issue a statement confirming the new rent and service charges you must pay after completion
Note: For step 3 - Please check the cost for a valuation by a surveyor who is registered with the Royal Institute of Chartered Surveyors (RICS) in your local area.
Back to back staircasing
In some circumstances, a Shared Ownership home can be sold through a process known as back-to-back staircasing.
This allows the seller to increase their ownership to 100% and sell the property to a new buyer as part of the same transaction.
Back-to-back staircasing may be considered where:
- A Shared Ownership buyer is not found during the nomination period.
- The nomination period has been waived.
- A buyer wishes to purchase the property outright rather than through Shared Ownership.
In these cases, the buyer's purchase funds are used to enable the seller to buy Karbon's remaining share and complete the sale at the same time.
If you choose to purchase a property through back-to-back staircasing, you should seek independent legal advice before proceeding.
Please note: Back-to-back staircasing is subject to the terms of the lease, a valid valuation and Karbon's approval. Our Resales Team will advise whether this option is available for the property.
Valuations and fees
An independent RICS valuation is normally required if you staircase with shares of 5% or more.
Depending on the transaction, the following may apply:
- Valuation fees.
- Legal fees.
- Administration fees.
A guide to fees you may expect to pay can be found here.
How to sell a Shared Ownership home
You can sell your Shared Ownership home at any time. Before marketing it, contact our Statutory Resales Team so we can check your lease and explain the next steps.
Important information
- Tell Karbon before selling if you own less than 100%.
- Your lease may include conditions that affect how your home is sold.
- Karbon will confirm whether a four-week nominations period applies and whether it can be waived.
- Buyers must meet Shared Ownership eligibility, affordability and Karbon’s policies.
- The remaining lease term may affect value and buyer interest.
- If you owe us any rent or service charges, you must be able to pay this when your sale completes.
Costs to consider
You are responsible for the costs of selling your home. These may include:
- Estate agent fees.
- Solicitor and legal fees. These vary by solicitor
- An Energy Performance Certificate (EPC), where required.
- Leasehold administration charges, including information packs.
- Stamp duty, paid on completion (if applicable).
You can find a full list of costs you may be responsible for here.
Just like buying a home through the traditional methods, there are risks to the Shared Ownership process.
- Buyers must meet Shared Ownership eligibility and affordability requirements.
- Delays may occur during application, mortgage or legal stages.
- The remaining lease term may affect demand and value.
- Sales can fall though before completion.
Shared Ownership resale process
Step 1
Instruct a RICS independent surveyor to value your home. This can be whoever you choose.
Step 2
After sharing evidence of the market valuation with Karbon, you appoint an estate agent to market your home.
Step 3
We’ll carry out initial Shared Ownership criteria checks on anyone who is interested in your home. The estate agent will manage any interest in your home and arrange viewings.
Step 4
Once a buyer has been found and offer stage completed, we can agree the sale. Then, we’ll instruct both Solicitors. If you’re selling through an Estate Agent, they will do this as well as manage the sale.
Step 5
Once all the paperwork has been completed, the Solicitor's will arrange a date to exchange contracts and suggest a completion date.
At this stage, we’ll let your Solicitor know the amount you’ll need to pay for the initial rent and service charges. You’ll agree key collection with your estate agent directly on completion day.
Case studies
Hear directly from our customers about their shared ownership journey.
Lease extensions
A lease extension is the legal process of adding more years to the remaining term of your lease. A lease gives you the right to occupy and use your home for a fixed number of years. As time passes, the remaining lease term reduces. Extending the lease can help protect the value of your home and make it easier to sell, remortgage, or staircase in the future.
Get in touch
Need more information about Shared Ownership? Get in touch with our Sales and Lettings Team by email at salesandlettings@karbonhomes.co.uk
Or if you have a question about our preloved homes for resale, contact our resales team at sharedownership@karbonhomes.co.uk
