Shared Ownership has become an increasingly popular option for individuals and families looking to step onto the property ladder in an era of rising house prices. This innovative scheme allows you to purchase a share of a property (typically between 25% and 75%) while paying rent on the remaining portion owned by a housing association. However, the unique nature of this arrangement can lead to confusion about tenants' rights and responsibilities. Let's dive into your tenants' rights in Shared Ownership so you can confidently navigate this home-buying option.

Key Shared Ownership tenant's rights

1. Right to quiet enjoyment:

This fundamental right ensures that you can live in your property peacefully without undue interference from your landlord or housing association. This means they cannot enter your property without permission (except in emergencies) and must provide adequate notice for inspections or repairs.

2. Repairs and maintenance:

Your lease will specify who is responsible for different types of repairs and maintenance. Generally:

- The housing association is responsible for major structural repairs, including the roof, exterior walls, and communal areas.

- You're responsible for internal decorations, fixtures and fittings, and minor repairs.

- In some cases, you may be responsible for window repairs, so always check your lease.

If the housing association fails to carry out necessary repairs, you have the right to complain and potentially take legal action.

3. Rent reviews and increases:

Your lease will outline how and when rent can be increased. Typically:

- Rent increases are limited to once a year.

- Increases must be in line with the Retail Price Index (RPI) plus a small percentage (usually 0.5% to 2%).

- You must be given at least one month's notice of any rent increase.

- If you believe a rent increase is unfair, you can challenge it through the First-tier Tribunal (Property Chamber).

4. Subletting and lodgers:

Most Shared Ownership leases prohibit subletting the entire property. However:

- You may be allowed to have a lodger with permission from your housing association.

- If you need to sublet due to exceptional circumstances (e.g., military deployment), you can request permission from your housing association.

How does staircasing and selling work?

Shared Ownership offers unique rights when it comes to increasing your ownership and selling:

1. Staircasing:

- You have the right to increase your share in the property over time, known as 'staircasing'.

- Most schemes allow you to staircase up to 100% ownership.

- The minimum additional share you can buy is usually 10%, but this can vary.

- You'll need to pay for a valuation each time you staircase.

- Once you own 100%, you become the outright owner and no longer pay rent.

2. Selling:

- When selling, you typically need to give the housing association first refusal to buy back the property or find a buyer.

- If the housing association doesn't exercise this right within a specified period (usually 8 weeks), you can sell on the open market.

- You're responsible for marketing costs if selling on the open market.

- The sale price will be based on the current market value of the property.

You can meet with a mortgage advisor to start your staircasing journey.

What will my lease terms and conditions be?

Your lease is a crucial document that outlines your rights and responsibilities. Common clauses include:

1. Service charges: You'll usually be responsible for paying a share of the service charges for the building and communal areas.

2. Ground rent: Some leases include ground rent, although this is being phased out for new leases.

3. Restrictions on alterations: You may need permission for significant alterations to the property.

4. Pets: Some leases may restrict pet ownership or require permission.

5. Nuisance clauses: These prevent you from causing disturbances to neighbours.

It's essential to thoroughly understand your lease terms. If anything is unclear, seek advice from a solicitor or leasehold specialist.

How can I address concerns?

While most Shared Ownership arrangements proceed smoothly, occasional misunderstandings or concerns may arise. If you encounter any issues, we recommend you start by discussing your concerns directly with your housing association. Many matters can be resolved through clear, respectful dialogue.

If needed, you can make a formal inquiry through your housing association's established channels. They often have procedures in place to address residents' questions and concerns. For complex matters, consider seeking guidance from organisations like Citizens Advice or the Leasehold Advisory Service (LEASE), which offer free, impartial advice.

Understanding the legal framework for Shared Ownership

A complex web of housing laws and regulations governs shared Ownership in the UK. The primary legislation includes:

1. Housing Act 1996 provides the legal basis for Shared Ownership schemes.

2. Leasehold Reform Act 1967: While primarily focused on leasehold properties, this act also impacts Shared Ownership arrangements.

3. Commonhold and Leasehold Reform Act 2002: This introduced changes to leasehold law that affect Shared Ownership properties.

These laws, along with subsequent amendments and regulations, set out the basic rights and responsibilities of both tenants and landlords in Shared Ownership schemes. It's important to note that while you're technically a leaseholder, many of your rights align with those of traditional tenants.

Understanding your rights as a Shared Ownership tenant is important for a smooth and satisfactory living arrangement. While this scheme offers an excellent opportunity to get onto the property ladder, it comes with its own set of rules and responsibilities. Always refer to your lease for specific terms, and don't hesitate to seek clarification from your housing association or legal professional when needed.