New shared ownership model lease

The Government introduced a new shared ownership model in 2021, and the homes built with this funding are starting to become available. The new model shared ownership applies to shared ownership homes funded under the Affordable Homes Programme (AHP) 2021-2026. 

The new model works in the same way as before but with a few key changes. These changes have been introduced to help even more people get on the property ladder and include:

  • Homes under the new shared ownership model lease will have a minimum lease length term of 990 years.
  • The new shared ownership model lease allows customers to buy from as little as a 10% initial share of a new build shared ownership home, up to a maximum of 75%.
  • Once a customer has bought a shared ownership home under the new shared ownership model lease, they will have the option to buy more shares from as little as 1% each year. This is known as the new 1% micro Staircasing model.   
  • There will also be an introduction of a 10-year repairs procedure to offer support with non-structural repairs for homes under the new shared ownership model lease. 

The new model lease only applies to certain developments, and certain homes. Click here to find out why.

These homes will be highlighted on our website. For further information, please contact our Sales team on 0800 027 9801 or email newhomes@livewest.co.uk.

Changes to the new model lease include:

  • Homes can now be purchased from as little as a 10% initial share, to help even more people get onto the property ladder. Please note, the share you purchase is determined by an affordability assessment taking into consideration the property price, your income, and any monthly outgoings.
  • The introduction of a 10 year repair warranty to offer support with non-structural repairs up to £500 per annum.
  • The option to staircase in 1% increments for the first 15 years with no admin fees.
  • Leases will have a minimum lease length of 990 years, helping to prevent any future lending issues where lease extensions are required.

 

  • Leaseholders will have the ability to buy additional 1% shares on their home each year for the first 15 years of owning the home, as well as still having the option to buy larger shares, starting at 5%.
  • For further information on what is involved with 1% staircasing, please click here.

  • The new model shared ownership lease gives you the ability to claim £500 per year to use towards the cost of internal repairs if they constitute a 'qualifying repair'.
  • The repairs allowance is designed to cover the cost of repairs to things that shouldn't be defective, such as fixtures and fittings that supply gas, electricity, or water into your home.
  • Shared owners will still be responsible for general repairs and maintenance within the home.
  • More information on what's included will be supplied throughout your new home purchase. 

 

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