Shared Ownership Jargon Busters

The agreed date from which you legally become the shared owner of your home and your lease commences.

Contents insurance protects your personal belongings in your home against theft, loss, damage, etc. LiveWest do not provide this and therefore is something you will need to arrange yourself.

This plan defines the location and legal boundaries of your home listed in your lease.

A rule or promise attached to your home that you agree to follow when you buy it. Normally include things you must do and things you cannot do i.e. Restrictive Covenant

Specific timeframe during which a contractor or builder is contracted to fix  or rectify any defects that arise in the construction work they completed that they are responsible for.

Questions that buyer’s solicitors raise to a seller’s solicitor to seek more information about the home, and clarify any concerns. These ensure that the buyer has all the necessary information before buying the home.

The seller and buyer have legally agreed the sale after signing contracts, which have been exchanged between their solicitors. 

When you purchase 100% of the home and stop paying rent, you become the full owner.

Freehold means to own a home, including the land it is built on, with no fixed time limit. 

The price the home would sell for on the open market without shared ownership.

The starting percentage of the home that you purchase. 

A legal document that sets out the rights and responsibilities of the leaseholder and the freeholder (usually the housing association).

Leasehold is a form on home ownership, where you can own a home for a fixed amount of time (“Term”) by leasing it from the landlord who owns the whole building or land that it is built on. 

A mortgage is a loan from a lender (bank or building society) that allows you to buy a home. The lender has right to take the home into their possession if the loan and interest is not repaid.

Mortgage lenders will employ a surveyor to completion a valuation to ensure the property has been valued correctly. 

Rent is paid monthly on the share of the home owned by the housing association. 

Term used to describe the procedure when you sell your home or share of a shared ownership home.

A non-refundable fee paid to reserve a home.

Remaining share of the property that a housing association owns.

An official valuation by a RICS-accredited surveyor to determine the market value of the home or additional shares you want to buy.

Research conducted by your solicitor to reveal potential challenges with the home or its surroundings that could impact your purchase. They ensure you are aware of any risks before committing to buying the home. 

A monthly payment to cover the cost of the services for managing and maintaining communal areas and surrounding development. 

The percentage of the home the buyer initially purchases.

Someone who owns a share in their home and has not yet staircased to full ownership.

A government-backed scheme that allows buyers to purchase a share of a home and pay rent on the remaining share, which is owned by a housing association.

A fund that may be set up through service charges to budget for major expenditure for communal works. For example, roof repairs, lift replacement and cyclical redecoration (decoration to communal areas, usually every seven years).

A solicitor (or conveyancer) is a legal expert who manages all the paperwork and checks for the home purchase and sale. The buyer and seller each have one to act on their behalf.

The process of purchasing extra shares in your home if you are a shared owner.

A tax payable by a purchaser on completion, when buying a home or land in the UK. 

The length of time that the Leasehold ownership is granted to you.