Shared ownership buying process step by step:
Step 1: Register with housing associations and local councils
because in many areas local councils decides the priority list.
Step 2: Once you identify the property and apply to the respective housing association for viewing the property.
Step 3: Viewing: Generally housing association book your viewing time and date and you need to be prompt.
Step 4: Register your interest with the housing asap. Make up your mind asap because if you don’t then somebody else will, considering London housing market.
Generally, you have a day or two to decide. Please note most often you don’t get second opportunity to view the property in London market
so when you are visiting the property to view keep all your questions ready.
Also, note registering your interest will cost you £100 to £500 depending upon housing association and development. If you don’t buy for any reason then your registration amount is lost.
Step 5: Housing association will suggest you to contact their independent financial adviser (IFA) to find out your eligibility and the type of mortgage you can get.
It is always good that if you test your eligibility beforehand alternatively you may end up losing your registration deposit.
Also, note different housing association and IFA have bit different criteria to assess as some allow up to 4 times of your household income
and some won’t go more than 3.5 times.
Step 5: Allocation
Generally, there are always more interested buyers than the homes available so the council or housing association will make a priority list
based on standard criteria in accordance with the allocations policy.
The allocations policy will depend on where the development or resale is. The local authority will usually decide who has priority.
Step 6: Offer: If you are successful at the allocations stage, you would get a call and home is offered to you. You will need to confirm, within three working days, whether you want to accept this.
Step 7: Appoint a solicitor:
You will need to appoint a solicitor to handle the legal paperwork involved. You will have a couple of days to get quotes from solicitors.
Note: it is advisable to get this job done in advance or you would get into terrible stress.
Generally, the housing association has a list of solicitors who are experienced in legal matters associated with (shared ownership) through Housing association is not responsible for their performance or their actions.
Your solicitor will explain the legal process and deal with the sale as quickly as possible so that you can move into your new home without unnecessary delays.
Step 8: Choose a mortgage lender:
It is your choice if you want to accept mortgage advice from housing association IFA.
Once you have decided which mortgage lender to go with, you can instruct them. You will have to pay to set up the mortgage and for the valuation to be carried out.
Note: Choose the mortgage lender which provide quick approval and disbursement. HSBC started one-day mortgage approval service recently in 2016 and some other bank also offer faster service.
Once you have instructed your solicitor and mortgage lender by filling in all the necessary paperwork, you must keep in touch with them to make sure they are aware of the deadline to exchange contracts.
Step 9: Solicitor carries out searches:
Your solicitor will carry out a number of searches.
The local authority search outlines proposed changes to the local area and whether any planning applications have been made on the property.
Step 10 – Bank will carry out survey:
A surveyor will carry out a survey on the property on behalf of your mortgage lender to identify any structural problems and give an idea of the property’s value.
Please note: Even at this point if your bank is not happy with the surveyor report you may not get the mortgage and lose the deposit.
Step 11 – Mortgage offer
Once your survey has been completed, your bank will give you your mortgage offer (not just an agreement in principle).
Generally, the bank will send this to your solicitor.
Step 12 -Exchange contracts
When you exchange contracts, you will sign a contract to buy your home.
Exchanging contracts normally should happen in four weeks time after the MOS is issued by the housing association.
You will also need to pay a deposit of 10% of purchase price. This is part of the purchase price and is not an extra cost. You will need to pay the deposit to your solicitor by cheque or online payment, which will need to clear by the deadline to exchange and agree for a completion date.
The completion date is the day you pay for the property and we give you the keys – it’s your moving-in date.
Step 13: Completing the purchase of your home
On the completion date your mortgage lender will give your solicitor the money to buy your home. Your solicitor will then pass this money on to the housing provider’s solicitor.
When this is done you officially become the official owner of the property and can Move in!
At this point the housing provider can give you with the keys to your home so that you can move in and make the property your home.