The disadvantages of shared ownership
Shared ownership staircasing is a great way to become an independent homeowner. There are many different companies, such as Sam Conveyancing, that can help a homeowner through the process. Although there are several pros to shared ownership, the disadvantages also need to be highlighted. Home Owners Alliance have shared a guide to the pitfalls to avoid.
Homeowners may experience extra maintenance charges and increases in the future. As well as the general maintenance charges and monthly service charges, individuals may be expected to pay more for significant works. Even though only a share of the property is owned, the homeowners is responsible for paying the full maintenance and repair costs.
Sub-letting is not always allowed in most cases, there may be restrictions on that.
When it comes to the topic of staircasing, buying more shares in the property can turn out to be very expensive. Not only do the shares need to be paid for, but the valuation fee for the agency to value the house, the legal expenses, the stamp duty tax, and the mortgage fees all become extra costs.
There may also be restrictions within the lease. It is more than likely that permission is needed from the housing provider to make any changes to the house, including redecorating, depending on the lease.