How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask RJM Law Your Own Question
RJM Law
RJM Law, Lawyer
Category: Law
Satisfied Customers: 3778
Experience:  LL.B (Hons)
106205234
Type Your Law Question Here...
RJM Law is online now

I would like advice on shared ownership properties. My wife

Customer Question

I would like advice on shared ownership properties. My wife and I would like to purchase a leasehold apartment under shared ownership with the L&Q group. From the information we were provided, we will be purchasing 25% with a mortgage and paying subsidised rent on the other 75%.
Submitted: 13 days ago.
Category: Law
Expert:  MatthewM1117 replied 13 days ago.

Good afternoon, thank you for contacting Just Answer my name is***** am a solicitor and I will be assisting you today. Can you clarify your question in relation to the shared ownership property?

Customer: replied 13 days ago.
Specifics:
Location: Acton, London
Full value: £575,000
25% purchase: £143,750
Rent for the rest pcm: £629
Service charge pcm: £241.04
Parking included
All non-construction alterations allowed (anything short of breaking downs walls and the structure of the flat).
Comes fully furnished with £15-30K of furniture and equipmen
Customer: replied 13 days ago.
Hi Matthew. I have been getting mixed information about Shared Ownership, some positive about how it allows more affordability and entry onto the ladder, and some negative about how Shared Ownership itself is a scam. I would like some objective legal and financial advice please.
Customer: replied 13 days ago.
Also, the property is being sold as a leasehold for 250 years, where the other owner for the remaining 75% is the freeholder themselves (L&Q Group).
Expert:  MatthewM1117 replied 13 days ago.

Thank you for the confirmation, unfortunately I cannot provide financial advice therefore I will opt out to allow another expert to pick this up.

Customer: replied 13 days ago.
Thank you. I look forward to a response.
Expert:  RJM Law replied 13 days ago.

Hello, and thank you for choosing our service today.   I am the expert who shall assist you with this matter today.

Please note that our service is conducted through emails and from time to time there may be a delay between answers and responses, this is due to the expert availability at the time.  If you do not receive a response immediately, please be advised you will receive one by the end of the day

I will be able to provide you with guidance in relation to your question.  However please note this does not form a professional client relationship and we cannot provide representation, however, I would be hopeful that my guidance will be able to assist you.

Thank you

Customer: replied 13 days ago.
Thank you.
Customer: replied 13 days ago.
Should I re-write the information I had previously provided. I don’t mean to rush. I’m mere curious if you need anything more.
Expert:  RJM Law replied 12 days ago.

Thank you for the question.  It is not a scam no, obviously you are paying for the privilege of having your unowned 75% paid for by another company.  However, this is how they make money, so if you are not in position to buy the property in full, you can use this method.  People see it as a scam because yes, you are paying out money from your property to someone else, however they have to be remunerated for their share.  It can be more difficult to sell as you will have to apportion them their collective right if the asset was to increase in value moving forward, however, ultimately it is up to you if you want to get on the ladder and this is the best way for you.  Just ensure you read all terms and conditions and consider what these would mean in the future.

I shall provide you with a helpful link that will assist you in finding a solicitor/representative near your local area.  This will provide you with someone nearby your area who can assist you if required.

I hope this information proved helpful.  You will find a local solicitor who deals with these matters on the law society webpage which is as follows;

https://solicitors.lawsociety.org.uk/ (England)

https://www.lawscot.org.uk/find-a-solicitor/ (Scotland)

https://www.lawsociety.ie/Find-a-Solicitor/Solicitor-Firm-Search/ (Ireland)

https://www.lawsoc-ni.org/solicitors (N. Ireland)

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.

Should you require any further assistance on this matter, please do not hesitate to post a further questions for additional assistance.

Kindest Regards.

Customer: replied 12 days ago.
One more question:
If my affordability and property requirements only allow for a shared ownership purchase, is it still better than simply renting? The mortgage + subsidised rent calculations make it seem as though this is still cheaper than regular renting. Is there a catch or is that just how this scheme is structured to allow more people on to the ladder?
I am thinking (since I do not intend to settle down in that area for the long run) that I will purchase the initial 25% of a property, pay subsidised rent on the remaining 75%, and just sell my share when I move. I understand that my gain will be proportionate to my share of the property. Would that be a viable strategy for short term financial gain instead of just incurring an expense with fully renting?
Thank you.
Expert:  RJM Law replied 11 days ago.

I am afraid I cannot answer that, you will really have to make the decision on what is best for you based on your own position.  However there is good money in BTL property.