Our Complete Guide To Shared Ownership - LQ Homes
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Our Complete Guide To Shared Ownership
Introduction At L&Q, we understand that buying your own home can feel exciting and daunting. Can you afford it? Which is the best way to buy? And what do you need to know before you even begin? If you’re wondering whether Shared Ownership might be the right choice for you, this guide is a good place to start. We’ll explain every aspect of Shared Ownership, including the advantages and disadvantages of buying a home this way. While Shared Ownership works brilliantly and has helped lots of people get on the property ladder, it may not be suitable for everyone. Reading this guide will support your journey in deciding if it’s the right route for you to take.
L&Q Homebuyers
Guide
Contents
01. L&Q Introduction
02. What is Shared Ownership
01. L&Q Introduction 03. Buying Process 03. Life as a Shared Owner 06. All about your new home
a. Who is L&Q? a. Getting started with a. Service charges a. L&Q New Home warranty 03. Buying Process
L&Q Shared Ownership
b. What is a housing association? b. Sinking funds b. The L&Q new home
b. Buying a Shared Ownership warranty does not cover
c. Difference between L&Q home after we have made c. Staircasing 04. Legal Interest & Responsibilities
and a private developer? you an offer c. Aftercare - reporting issues
d. Re-mortgaging
c. Initial buying costs d. NHBC warranty or equivalent
e. Extending your lease 05. Life as a Shared Owner
02. What is Shared Ownership
f. Home Improvements
a. Buying a Shared Ownership 04. Legal Interest and 07. Our promise to you
home with L&Q Responsibilities g. Selling your home
a. Customer Charter 06. All about your new home
b. Why is Shared Ownership a. Leasehold and h. Ongoing costs
more affordable? b. Consumer code
freehold explained
i. Future costs that 07. Our promise to you
c. Eligibility explained c. Complaints policy/procedure
b. Our Standard Lease Terms may apply
d. Eligibility Q&A c. Ground rent
08. Case studies 08. Case studies
e. Affordability Q&A d. Shared Ownership leasehold
f. How do we allocate homes? e. Your legally binding
g. What are the costs of responsibilities
Shared Ownership? f. Our legally binding
responsibilities
Homebuyers
Guide
Who is L&Q? 01. L&Q Introduction
L&Q is one of the UK’s leading housing associations 02. What is Shared Ownership
and developers - we believe passionately that people’s
health, security and happiness depend on where they live.
That’s why we’re more than a registered charitable housing 03. Buying Process
association. We want to provide homes and neighbourhoods
everyone can be proud of by delivering safe, high quality
04. Legal Interest & Responsibilities
homes, services and support for all of our residents.
Social purpose is at the core of everything we do. 05. Life as a Shared Owner
As a not-for-profit organisation, we reinvest all the money
we make to help house and support those in greatest need.
06. All about your new home
Our 250,000 residents are 60 years, building homes for
our priority, so the quality and sale or rent across the country,
sustainability of the places we so we’re in it for the long term, 07. Our promise to you
manage and build, and the providing support to our
on-going involvement in these residents and their communities
neighbourhoods is as important if they need us.
08. Case studies
to us as it is to them. We’ve been
a landlord and developer for
Homebuyers
Guide
What is a housing
association? 01. L&Q Introduction
Housing associations are not-for-profit
02. What is Shared Ownership
organisations set up to provide a wide
range of housing products and services.
03. Buying Process
L&Q provide quality homes to suit a whole
range of aspirations, incomes and stages of
life, for Private Rent, Shared Ownership and
Market Sale. We also focus on our existing 04. Legal Interest & Responsibilities
social housing residents by investing in their
homes, local communities and services.
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studies
Difference Homebuyers
Guide
between L&Q
and a private
developer? 01. L&Q Introduction
As a housing association, L&Q’s social 02. What is Shared Ownership
purpose is at the core of what we do and
we reinvest all the money we make into
our homes and services. Residents are 03. Buying Process
at the heart of L&Q, and our governance
structures ensure they have a powerful
voice throughout the business. We’re 04. Legal Interest & Responsibilities
building relationships based on trust,
transparency and fairness and we’re
05. Life as a Shared Owner
making sure that we’re there when we’re
needed – locally responsive and working
hard to keep the communities we serve 06. All about your new home
safe and vibrant. This is what drives
our people and our culture.
07. Our promise to you
Developers build and market new homes,
and once each home is sold the relationship
with the purchaser is usually complete. 08. Case studies
Profits are typically returned to directors
and shareholders.
Homebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
What is Shared Ownership?
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studies
Homebuyers
Buying a Shared Ownership Guide
home with L&Q
Am I eligible?
With Shared Ownership you start by buying a share in your 01. L&Q Introduction
To buy a home under the
home and then progress to full ownership by buying more
Shared Ownership scheme you must
shares. Your deposit will be 5% to 10% of the share you are meet these basic requirements:
02. What is Shared Ownership
buying. You pay a mortgage on the share you own and a rent
to L&Q on the share you don’t own. have a combined annual household income
under £80,000, or £90,000 in London
03. Buying Process
Are some applicants the costs of buying a home.
not own a property, or part of a property,
These costs include things like
prioritised? at the time of completing on your purchase
the reservation fee, mortgage
valuation fee, removal costs 04. Legal Interest & Responsibilities
Some developments may initially be 18 years or older and be able
be reserved for those who live or and utility connection.
to obtain a mortgage.
work locally, but in most cases the
development is open to everyone Can I buy more shares Complete our Shared Ownership 05. Life as a Shared Owner
so please register if you are in my home? Application form to confirm
interested. You can find out more your eligibility.
about the development eligibility Yes, this process is known as 06. All about your new home
criteria on our website or by staircasing. You can also sell the so.landqforms.org.uk/ci
speaking to the Sales Team. share you own at any time, our
dedicated resales team will be 07. Our promise to you
Is Shared Ownership able to assist.
really affordable?
08. Case studies
If you are successfully allocated a
home you will be required to meet
with our appointed independent
mortgage advisor to check the
purchase is affordable for you.
They will help you determine what
is affordable and help you make
the right decision. You will need a
deposit and will also need to cover
Why is Shared Ownership The example below is based on buying a 25% share: Homebuyers
Guide
more affordable?
1 2
Because you only need a deposit and mortgage
01. L&Q Introduction
for the share that you purchase. You can
usually buy between a 25-75% share.
02. What is Shared Ownership
03. Buying Process
5-10%
25%
04. Legal Interest & Responsibilities
What is the
rent on unsold equity? You can usually buy A deposit will be required, and
between a 25-75% share this will be a minimum of 5% 05. Life as a Shared Owner
of the share you are buying
You will only pay rent on the share that you do
not own. When you staircase, the rent you pay
will reduce 06. All about your new home
The maximum rent that can be charged 3 4
is 3% of the unowned share 07. Our promise to you
The rent will increase each year in line
with RPI (Retail Price Index), the exact
08. Case studies
terms will be noted within your lease
90-95%
It’s important rent payments are 75%
made each month along with
other payments such as your
mortgage, service charges
and utility bills.
You will make mortgage payments You will pay a rent on the
on the share you own remaining unsold share
Homebuyers
Guide
Eligibility explained
Whether or not you qualify for a Shared Ownership home – often 01. L&Q Introduction
called your ‘eligibility’ – is dependent on three separate factors.
It’s important to understand the difference between them.
02. What is Shared Ownership
General eligibility Property eligibility
This is defined by the government. Local Authorities sometimes set 03. Buying Process
You need to meet the general their own rules in terms of allocating
eligibility criteria to be accepted homes, prioritising people who, for
for any Shared Ownership scheme. example, already live or work in the 04. Legal Interest & Responsibilities
Complete our Shared Ownership area. This can affect whether or not
application form to confirm we’re able to offer you a home.
your eligibility.
05. Life as a Shared Owner
Affordability
06. All about your new home
Affordability is different for
everyone, and depends on your Speak to an
income, financial commitments and expert to find out
the value of the home you want to what you can afford 07. Our promise to you
buy. In most cases, the housing
costs of mortgage, rent and service
It’s a good idea to speak with
charge should be no more than 08. Case studies
one of our independent mortgage
40% of your net take home pay.
advisors before you start looking
at any homes. They’ll be
able to work out your budget,
so you don’t make the mistake
of falling in love with
something you can’t afford.Homebuyers
Guide
Eligibility Q&A
Is this just for first-time buyers?
01. L&Q Introduction
Does it matter if I’ve bought a house before?
Shared Ownership is a little more You don’t have to be a key worker
02. What is Shared Ownership
flexible than many house-hunters or have a family. As long as you’re
realise. It’s actually available 18 or older and fit within one of
to anyone that can’t afford to these three groups, Shared
buy a suitable home on the open Ownership could be a possibility. 03. Buying Process
market. The government breaks
this down into three groups This means Shared Ownership
of people: could potentially be right for: 04. Legal Interest & Responsibilities
First-time buyers Separated couples looking
to buy a property each
05. Life as a Shared Owner
People who have previously
owned a home but can’t Families needing to move
afford to buy one now* into larger homes
06. All about your new home
Existing Shared Ownership Retirees and downsizers
homeowners who want
to move. Friends looking 07. Our promise to you
to buy together.
Can I make a joint application? 08. Case studies
Yes, two of you can apply jointly for Shared Ownership
using our online form, as long as you have a good credit history
with no outstanding mortgage or rental payments, and no
defaults or County Court Judgments.
* If you’re applying for Shared Ownership and there’s another adult in the
household who will contribute to the household income, you must complete
a joint application. Do not complete a single application and add the
contributing adult as a household member.Affordability Q&A I get a bonus. Do you count that as income? Homebuyers
Guide
Depending on the mortgage lender’s criteria, if you receive a bonus,
The short answer is yes to all three, but the exact figures commission or overtime, we’ll include 50% of that figure in your annual
and details vary. We’ll break it down into simple terms. household income. For example, if you earn £45,000 a year and £10,000 a
year in commission, your total annual income will be recorded as £50,000.
01. L&Q Introduction
All of L&Q’s properties for a mortgage and afford your
require a minimum income. monthly rent and service Can I pay for my share in cash, with no mortgage?
There will be a guide minimum charges. So you’ll almost 02. What is Shared Ownership
income for each of our homes certainly need a salary or In exceptional circumstances, it may be possible to purchase your share in
for sale but often you can still other form of regular cash if you are unable to obtain a mortgage. Adverse credit is not accepted
proceed if you are below this income, for example, from as a reason for doing so. Our Sales Associates can provide more
minimum income if you have a established self-employment information upon request. 03. Buying Process
higher deposit. or pension payments.
I receive benefits. Does that rule me out?
Local authorities sometimes You need to have a good 04. Legal Interest & Responsibilities
set minimum and maximum credit history with no Not necessarily. It depends what sort of benefits, how long you’ll be
incomes for certain outstanding mortgage receiving them and whether you’ll need to borrow money to pay for your
developments. Whichever or rental payments, share of the house. If you’re eligible for Shared Ownership and certain
05. Life as a Shared Owner
home you choose you’ll need and no defaults or benefits, you may be able to get support with your rent payments.
to earn enough to qualify County Court Judgments.
Can I afford an L&Q home?
06. All about your new home
This is something to think carefully about before going ahead, to avoid
disappointment later down the line.
07. Our promise to you
When you apply for L&Q Shared Ownership, we will ask for details about
your income and financial commitments. This helps us understand whether
you can afford the costs of buying and maintaining a new home. As well as 08. Case studies
earning enough to pay your mortgage and rent, it’s important to
understand the key points:
ou will need around £5,000 to buy a home. This covers things like the
Y
reservation fee, mortgage arrangement fees, solicitor’s fees, removal
“
costs, first month’s rent and utility connection charges. On completion,
If you’re self-employed,
your mortgage lender and
L&Q will need to see two
“ you will also have to pay the rent and service charges for the remainder
of the month you complete in and then the next full month.
full years of accounts. You will also need money for your deposit (usually 5%-10% of the share
you are buying).Homebuyers
Guide
How do we allocate homes?
This depends on the development and area you’re
01. L&Q Introduction
buying in. There may be specific criteria set by the
local authority as part of the planning permission.
02. What is Shared Ownership
For example
Some councils prioritise healthcare professionals if the development
03. Buying Process
is close to a hospital. Each development will advertise if there are any
specific allocation criteria. Often this can be for an initial period
before being opened up to others.
04. Legal Interest & Responsibilities
If the local authority does not set any specific allocation criteria,
the below factors will be considered when allocating.
05. Life as a Shared Owner
Already live or work in the Would be living in the
same borough as the home home with children
you want to buy
06. All about your new home
Work for the
Are a first-time buyer Ministry of Defence.
Are an existing local authority 07. Our promise to you
or housing association tenant
If we receive multiple reservations for the same property, then 08. Case studies
L&Q will review the circumstances of the clients who have applied
and assess who should be prioritised.What are the costs of Shared Ownership? Homebuyers
Guide
Initial buying costs
What is it? Will it change 01. L&Q Introduction
Cost When is it paid? Amount
What does it pay for? in the future?
At point of reservation.
An initial payment 02. What is Shared Ownership
For new build sales, this will
to secure your interest
Reservation fee be deducted from completion Standard Fee is £500. N/A
in the property, subject
monies, for resales, it will be
to eligibility and contract.
refunded upon completion. 03. Buying Process
Buying costs inc. All third party costs in
solicitor's fees, relation to progressing
During purchase process. Approx. £3,500 - £5,000. N/A
mortgage costs the purchase of 04. Legal Interest & Responsibilities
and moving costs your property.
10% of the share you are
purchasing (5% if purchasing 05. Life as a Shared Owner
with a 95% Loan to Value
Your contribution
mortgage). Although 10% is
Deposit towards the purchase When contracts are exchanged. N/A
due upon exchange, you may
of your property. 06. All about your new home
require a higher deposit to
obtain a mortgage subject to
your individual circumstances.
07. Our promise to you
At completion. There are two
Depends on % share
options for paying this, it can Additional stamp
& home’s value.
either be paid based on the share duty may be payable
A government 08. Case studies
being purchased, with further subject to initial stamp
Stamp duty tax payable to Further guidance can be
stamp duty payable upon future duty payment option.
purchasing property. found here - www.gov.uk/
staircasing or it can be paid in full Also subject to
guidance/sdlt-shared-
based on the full market value at government legislation.
ownership-property.
the time of purchase.
Notification that ownership
of the home has been Benchmarked
Notice of Transfer
transfered to you. And, On completion. Approx. £110.00 per notice. regularly with
and Charge fees
that your mortgage lender other organisations.
has a legal charge.
Charges are correct at time of going to print in March 2022.Ongoing costs Homebuyers
Guide
What is it? Will it change
Cost When is it paid? Amount
What does it pay for? in the future?
01. L&Q Introduction
Subject to change
Money loaned to a
depending on the
purchaser from a Subject to property
mortgage product, 02. What is Shared Ownership
Mortgage financial institution Monthly. value and mortgage product
future borrowing,
(bank/building society) (fixed or variable rate).
overpayments or
to part fund the purchase.
staircasing. 03. Buying Process
Money that is paid to Yes, increases each
the landlord each month. Subject to property year by 0.5% above RPI. 04. Legal Interest & Responsibilities
Rent The rent is paid on Monthly. value and % of ownership. N.B Historic leases may
the unowned share of Reviewed annually. vary. Rent will reduce
the property. upon staircasing.
05. Life as a Shared Owner
Costs in relation to services
that are provided by the Yes (reviewed annually,
landlord to cover based on expenditure 06. All about your new home
different elements in of the previous year).
Service charges the communal/shared Monthly. Reviewed annually. Usually service charges
areas within the building increase each year in 07. Our promise to you
and wider estate. line with inflation/cost
For example grass cutting/ of works.
communal cleaning.
08. Case studies
An amount payable
Ground rent Fixed every 12 months Yes (reviewed annually
under the terms of the lease Annually.
(if applicable) (scheme specific). in line with lease).
to the landlord.
Household bills to cover
Utility bills, Council Subject to change
items not provided by the
Tax and Content's Monthly or quarterly. Subject to each household. depending on utility
landlord, e.g. personal
Insurance* tariff and council rates.
electricity and water.
*General wear and tear should be budgeted for. Charges are correct at time of going to print in March 2022.Further costs Homebuyers
Guide
What is it? Will it change
Cost When is it paid? Amount
What does it pay for? in the future?
01. L&Q Introduction
Costs will be payable
The cost payable
Staircasing costs on future staircasing
by the shared Approx. £1,000 - £3,500
inc. solicitor's fees, transactions. Staircasing 02. What is Shared Ownership
owner to purchase During staircasing process. N.B Excludes Stamp Duty
mortgage costs costs are subject to
further shares in that may be payable.
& admin fee change given third
their property.
parties involved. 03. Buying Process
The cost payable
Minor Home Improvements
Home improvements by the shared owner 04. Legal Interest & Responsibilities
At start of home Approx. £150.00 - £250.00,
– survey, legal and in order for home N/A
improvement project. Major Home Improvements
admin fees improvements
Approx. £1275.00 - £1375.00.
to be carried out.
05. Life as a Shared Owner
The costs payable Extension premium subject Subject to any future
Lease Extensions inc.
by the shared owner to each property value. lease extensions and
premium, solicitor's fee, During lease extension process.
to extend their Solicitor/Valuation/Admin length remaining 06. All about your new home
valuation and admin fee
lease term. fees Approx. £2,500. on lease.
Our fees payable for Standard fee is 1.25% exc
Payable upon completion 07. Our promise to you
Selling costs marketing your home VAT of the full market value N/A
if L&Q secure the buyer.
and securing a buyer. N.B Historic leases may vary.*
Our fees payable to 08. Case studies
provide your buyer,
Only in line with
Management Enquiry and their solicitors Payable once a buyer
£250 inc. VAT. any government
Pack Costs with leasehold has been found.
recommendations.
information related
to your home.
*Unless otherwise stated within the lease document. Charges are correct at time of going to print in March 2022.Homebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studies
Buying
ProcessGetting started with L&Q Shared Ownership Homebuyers
Guide
Your first steps to finding your home.
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
Step 1: Confirm your eligibility Step 2: Reserve your home Step 3: We make you an offer
Complete the online L&Q Shared Ownership Browse our website and find a home Once you have paid your reservation fee, 06. All about your new home
Application form at lqhomes.com/apply. that’s right for you. Book a viewing and we will verify your identity. If the result of
If you’re purchasing a home with a friend visit the show home, once you’ve chosen this check is satisfactory, we’ll contact
or partner, remember to complete the Joint your home reserve it with a payment you to make an offer of a home. 07. Our promise to you
Application section of the form. of £500. Homes will be allocated
based on priority.
08. Case studiesBuying a Shared Ownership home Homebuyers
Guide
After we have made you an offer.
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
Step 1: Meet a mortgage advisor Step 2: You appoint a solicitor Step 3: We exchange contracts
04. Legal Interest & Responsibilities
When you accept the offer, it will be subject to Everyone who buys a home needs to appoint The Memorandum of Sale (MOS) will give
a financial assessment with an independent a conveyancing solicitor to work on their a date by which to exchange contracts.
mortgage advisor (IMA). They will assess what behalf. We can provide details of solicitors This makes your intention to buy a home 05. Life as a Shared Owner
share you can afford to purchase and arrange who specialise in Shared Ownership. through L&Q a legally binding agreement.
your mortgage application for you.
06. All about your new home
07. Our promise to you
08. Case studies
Step 4: Completion day arrives! Step 5: Time to collect your keys
Your mortgage lender will give your We will make arrangements to meet you at
solicitor the money to buy your home and your home and hand over your keys. We will
complete the sale. Congratulations on also walk you through your new home and
purchasing your new home! talk you through your Home User Guide.Initial buying costs Homebuyers
Guide
What is it? Will it change
Cost When is it paid? Amount
What does it pay for? in the future?
01. L&Q Introduction
At point of reservation.
An initial payment
For new build sales, this will
to secure your interest
Reservation fee be deducted from completion Standard Fee is £500. N/A
in the property, subject 02. What is Shared Ownership
monies, for resales, it will be
to eligibility and contract.
refunded upon completion.
Buying costs inc. All third party costs in
03. Buying Process
solicitor's fees, relation to progressing
During purchase process. Approx. £3,500 - £5,000. N/A
mortgage costs the purchase of
and moving costs your property.
04. Legal Interest & Responsibilities
10% of the share you are
purchasing (5% if purchasing
with a 95% Loan to Value
Your contribution
mortgage). Although 10% is 05. Life as a Shared Owner
Deposit towards the purchase When contracts are exchanged. N/A
due upon exchange, you may
of your property.
require a higher deposit to
obtain a mortgage subject to 06. All about your new home
your individual circumstances.
At completion. There are two
Depends on % share
options for paying this, it can Additional stamp
& home’s value. 07. Our promise to you
either be paid based on the share duty may be payable
A government
being purchased, with further subject to initial stamp
Stamp duty tax payable to Further guidance can be
stamp duty payable upon future duty payment option.
purchasing property. found here - www.gov.uk/ 08. Case studies
staircasing or it can be paid in full Also subject to
guidance/sdlt-shared-
based on the full market value at government legislation.
ownership-property.
the time of purchase.
Notification that ownership
of the home has been Benchmarked
Notice of Transfer
transfered to you. And, On completion. Approx. £110.00 per notice. regularly with
and Charge fees
that your mortgage lender other organisations.
has a legal charge.
Charges are correct at time of going to print in March 2022.Homebuyers
Guide
01. L&Q Introduction
Legal Interest
and Responsibilities 02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studiesHomebuyers
Guide
Leasehold and freehold explained
Leasehold Freehold 01. L&Q Introduction
House – Full rights to owners House – Full rights to owners
Land – Restricted rights to owner Land – Full rights to owners
02. What is Shared Ownership
03. Buying Process
Leasehold Freehold 04. Legal Interest & Responsibilities
05. Life as a Shared Owner
Leasehold is a long-term tenancy As a freeholder of a property you
where someone buys the right to own it outright, including the land 06. All about your new home
live in a property for a set period it’s built on. If you buy a freehold,
of time (anywhere from 99 to 990 you’re responsible for maintaining
years). Unless arrangements are your property and the land. If you’re 07. Our promise to you
made to extend the lease before it part of a development estate, then
expires, ownership of the property you will need to contribute toward
returns to the freeholder. As a the upkeep and maintenance of
leaseholder, if you own a property the communal grounds via an
Shared Ownership flats 08. Case studies
in an apartment block, you won’t estate charge in addition to any and houses are sold on
own the land the property sits on, maintenance and insurance costs a leasehold term initially.
this will be owned by the Freeholder. specific to your home. Most
houses are freehold but some Upon final staircasing of houses,
might be leasehold, especially the leaseholder will usually obtain
through Shared Ownership. the freehold. On some developments
this may not be possible, details
More information is available at will be provided by the sales
Home - The Leasehold Advisory Service (lease-advice.org) representative at the time of sale.Homebuyers
Guide
Our Standard 01. L&Q Introduction
Lease Terms
02. What is Shared Ownership
If we are the freeholder or
if we own a long leasehold
interest, we will grant a lease
term of 990 years 03. Buying Process
If we are not the freeholder
or have a shorter headlease 04. Legal Interest & Responsibilities
than 990 years, then we will
grant the maximum term
that we possibly can 05. Life as a Shared Owner
All of our homes will be
marketed clearly with the
lease term available. 06. All about your new home
More information is available at
07. Our promise to you
Home - The Leasehold Advisory Service
(lease-advice.org)
08. Case studiesHomebuyers
Guide
Ground rent
01. L&Q Introduction
As a leaseholder, you may be 02. What is Shared Ownership
required to pay an annual ground rent.
The amount payable may vary and
03. Buying Process
is subject to each development.
The amount will be specified within
your lease and will be outlined 04. Legal Interest & Responsibilities
at the time of purchase.
Ground rent is usually an annual fee and 05. Life as a Shared Owner
specified within your lease. Most ground rents
are payable in April, unless your lease states
otherwise. We’ll send you a letter a month
06. All about your new home
before to remind you it’s coming.
You will pay 100% of your ground rent and
service charge, whatever percentage share 07. Our promise to you
of your home you own. This is because you
are an owner-occupier, not a tenant.
08. Case studiesHomebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
Shared Ownership
leasehold 03. Buying Process
When you buy a Shared Ownership home
04. Legal Interest & Responsibilities
with L&Q, we enter into an agreement.
You’ll sign a lease, which outlines your
rights and responsibilities as a leaseholder, 05. Life as a Shared Owner
and our responsibilities. Our responsibilities
include things such as making sure your
home (the building) is insured, keeping 06. All about your new home
the outside of apartment blocks in good
repair and consulting you about repairs to
07. Our promise to you
any shared areas over a certain amount.
08. Case studiesYour legally binding Our legally binding Homebuyers
Guide
responsibilities responsibilities
K
eep your home in good Respect your neighbours
To enforce leaseholders’ To provide services that are
condition and carry out any and do not cause a nuisance. covenants in the lease specified in the lease, such 01. L&Q Introduction
maintenance required. If you Everyone has a right to quiet as cleaning and gardening
own a house, you are responsible enjoyment of their home To ensure all of the leases
for all repairs and maintenance are substantially the same To provide buildings, public 02. What is Shared Ownership
inside and outside your home. Keep us up to date with who
liability and staff insurance
If you own an apartment or a is living in your property. To ensure leaseholders
maisonette, you are responsible Sub-letting is not permitted have quiet enjoyment of To ensure all service charges
03. Buying Process
for maintaining the inside only but may be considered in their property are properly demanded
extreme circumstances and paid.
Pay all service charges, rent
To keep the common parts
and ground rent payments on Request permission from
in a good state of repair 04. Legal Interest & Responsibilities
time. Failure to pay could result us before making any and redecoration
in repossession of your home alterations to your home.
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studies
Note
The above gives a snapshot
of some of the key points,
your lease will set out all the
conditions which will need to
be adhered to. It is important
you have read and understood
your lease before proceeding
with your purchase.Homebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studies
Life as a
Shared
OwnerHomebuyers
Guide
Service charges
What are service charges? grounds maintenance or cleaning 01. L&Q Introduction
shared areas, we know the annual
Service charges cover the cost of cost of the contract in advance.
any communal services, such as
We divide the estimated charge 02. What is Shared Ownership
grounds maintenance, a caretaker
and cleaning shared areas. into equal regular payments, so you
The charges also cover the cost don’t have to pay the whole amount
of maintaining and repairing in one lump sum. 03. Buying Process
equipment within shared areas,
such as lifts, communal TV aerials, After the end of each financial year,
CCTV, electronic gates, door entry usually around September, the 04. Legal Interest & Responsibilities
systems and fire safety equipment. accounts of expenditure will be
Whilst you’re a shared owner your completed. We will contact you
service charges also include the should there be an overspend or
05. Life as a Shared Owner
cost of your buildings insurance. underspend and advise if any
additional monies are due or if
How do you work out any monies are due to be refunded
to you. 06. All about your new home
service charges?
At the beginning of each financial Service Charges Charter
year, we estimate the cost of 07. Our promise to you
L&Q have signed up to the Mayor
communal services and charge you
of London’s Service Charge Charter
your share of that estimate. These
to demonstrate our commitment to
estimates are worked out using 08. Case studies
transparency, affordability, design,
information from our contractors
scrutiny and redress. The charter
and by analysing past costs. For
can be found here:
example, we estimate communal
electricity consumption based on
london.gov.uk/what-we-do/
bills from the supplier over previous
housing-and-land/service-
years. When the service is provided
charges-charter
under a regular contract, such asSinking funds Homebuyers
Guide
A sinking fund is a long-term savings plan that leaseholders
contribute to every month through service charges. This is used
to pay for major work that are required, such as replacing a roof.
01. L&Q Introduction
We will always consult with you for any single item of works that
will cost you more than £250 via a Section 20 notice. All sinking
fund contributions are held by us and accounted for separately 02. What is Shared Ownership
from other service charges. Interest is earned on the money
and is added to the sinking fund balance every year.
03. Buying Process
More information can be found here:
lqgroup.org.uk/your-home/rent-and-service-charges/
consulting-over-charges-section-20 04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
Did you know...
Sinking funds can
be desirable to future 08. Case studies
buyers should you
decide to sell as
monies have been
put aside for future
major works.Staircasing Homebuyers
Guide
The process of purchasing additional shares and increasing
your ownership (equity) is called ‘staircasing’.
01. L&Q Introduction
There is no timescale or The third and final
requirement to staircase, transaction must take
it’s up to each individual you to 100% ownership 02. What is Shared Ownership
leaseholder whether they
wish to staircase and when Staircasing transactions will
be based on the value of your
03. Buying Process
You will have three home at the time of the
opportunities to staircase transaction, not the original
to 100% ownership purchase price. An independent
RICS valuation will be required 04. Legal Interest & Responsibilities
The minimum share you
can staircase by is 10% With Shared Ownership
houses, upon final staircasing 05. Life as a Shared Owner
Each increase must be you will usually receive the
either a 5 or 10% multiple transfer of the freehold.
06. All about your new home
More information on staircasing can be found here:
lqgroup.org.uk/your-home/homeowners/staircasing
07. Our promise to you
08. Case studies
Did you know?
When you apply to increase your shares,
your rent account must be up to date and
must remain so throughout the process.
You also need to consider the costs of
legal fees and any additional mortgage
fees you will incur.
Your lease will contain information
that explains how to staircase.Re-mortgaging Extending your lease Homebuyers
Guide
As a shared owner, you will have options to re-mortgage from L&Q allow shared owners to extend
time to time. Before doing so you should seek financial advice. their lease via an ‘informal’ process.
01. L&Q Introduction
As L&Q have an interest in your home whilst you are During the lease extension There are costs associated
process, your original lease with extending your lease,
a shared owner, you will also need to gain consent
would be surrendered and a for example, for the valuation 02. What is Shared Ownership
from us before proceeding to re-finance. new one granted for the itself, the administration of the
extended term. case, legal costs and the premium
to grant the new lease.
03. Buying Process
Wherever possible we
will look to extend to the
maximum term available.
04. Legal Interest & Responsibilities
This will be dependent on whether
we are the freeholder of your home.
Where we are not the freeholder, 05. Life as a Shared Owner
we will offer you the maximum term
that we can, within the limitations
of our own headlease.
06. All about your new home
More information on lease extensions can be found here:
lqgroup.org.uk/your-home/homeowners/your-lease/extending-your-lease
07. Our promise to you
08. Case studies
Did you know...
You should consider
extending your lease before
the remaining term is
85 years or less in order to
not adversely affect the
properties value, or your
ability to sell or remortgage.Homebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
Home improvements
08. Case studies
You can make improvements and alterations We advise against making If you buy more shares in As a shared owner, we will only
to your home. Depending on the nature of any improvements during the your home and the Surveyor approve major alterations if you
initial two years of living in your determines these have added own 50% of your home or more.
the improvement(s) you may need to seek
home as you may void your value to the property, this
approval from us. This will ensure the works L&Q warranty. amount will be deducted
will not affect your home’s structural integrity. from your staircasing
premium/purchase price.
More information on how to apply and what improvements require formal consent can be found here:
lqgroup.org.uk/your-home/homeowners/your-lease/improving-your-homeSelling your home Homebuyers
Guide
You can sell your home at any time. Under the terms
of your lease, we have eight weeks to find a buyer for
your home so your property can remain as a Shared 01. L&Q Introduction
Ownership property. Our standard fee if we find a buyer
is 1.25% + VAT of the full market value. This fee may vary
02. What is Shared Ownership
depending on the terms of your individual lease.
If we are unable to find a buyer Like any home, the value can
for your home, then you can rise and fall along with the 03. Buying Process
instruct an estate agent and sell housing market.
on the open market. A selling fee
would not be due to us in this If you are looking to sell your 04. Legal Interest & Responsibilities
situation, however our solicitor’s home we will be happy to help
costs would still be payable. answer any queries. The full
selling process can be found 05. Life as a Shared Owner
Like staircasing, the price you sell on our website.
your home for will be based on a
RICS valuation which will determine
the market value at the time. 06. All about your new home
07. Our promise to you
08. Case studies
More information on selling
your home can be found here:
lqgroup.org.uk/your-home/homeowners/
selling-or-transferring-your-home/
selling-your-shared-ownership-homeOngoing costs Homebuyers
Guide
What is it? Will it change
Cost When is it paid? Amount
What does it pay for? in the future?
01. L&Q Introduction
Subject to change
Money loaned to a
depending on the
purchaser from a Subject to property
mortgage product, 02. What is Shared Ownership
Mortgage financial institution Monthly. value and mortgage product
future borrowing,
(bank/building society) (fixed or variable rate).
overpayments or
to part fund the purchase.
staircasing. 03. Buying Process
Money that is paid to Yes, increases each
the landlord each month. Subject to property year by 0.5% above RPI. 04. Legal Interest & Responsibilities
Rent The rent is paid on Monthly. value and % of ownership. N.B Historic leases may
the unowned share of Reviewed annually. vary. Rent will reduce
the property. upon staircasing.
05. Life as a Shared Owner
Costs in relation to services
that are provided by the Yes (reviewed annually,
landlord to cover based on expenditure 06. All about your new home
different elements in of the previous year).
Service charges the communal/shared Monthly. Reviewed annually. Usually service charges
areas within the building increase each year in 07. Our promise to you
and wider estate. line with inflation/cost
For example grass cutting/ of works.
communal cleaning.
08. Case studies
An amount payable
Ground rent Fixed every 12 months Yes (reviewed annually
under the terms of the lease Annually.
(if applicable) (scheme specific). in line with lease).
to the landlord.
Household bills to cover
Utility bills, Council Subject to change
items not provided by the
Tax and Content's Monthly or quarterly. Subject to each household. depending on utility
landlord, e.g. personal
Insurance* tariff and council rates.
electricity and water.
*General wear and tear should be budgeted for. Charges are correct at time of going to print in March 2022.Further costs that may apply Homebuyers
Guide
What is it? Will it change
Cost When is it paid? Amount
What does it pay for? in the future?
01. L&Q Introduction
Costs will be payable
The cost payable
Staircasing costs on future staircasing
by the shared Approx. £1,000 - £3,500
inc. solicitor's fees, transactions. Staircasing 02. What is Shared Ownership
owner to purchase During staircasing process. N.B Excludes Stamp Duty
mortgage costs costs are subject to
further shares in that may be payable.
& admin fee change given third
their property.
parties involved. 03. Buying Process
The cost payable
Minor Home Improvements
Home improvements by the shared owner 04. Legal Interest & Responsibilities
At start of home Approx. £150.00 - £250.00,
– survey, legal and in order for home N/A
improvement project. Major Home Improvements
admin fees improvements
Approx. £1275.00 - £1375.00.
to be carried out.
05. Life as a Shared Owner
The costs payable Extension premium subject Subject to any future
Lease Extensions inc.
by the shared owner to each property value. lease extensions and
premium, solicitor's fee, During lease extension process.
to extend their Solicitor/Valuation/Admin length remaining 06. All about your new home
valuation and admin fee
lease term. fees Approx. £2,500. on lease.
Our fees payable for Standard fee is 1.25% exc
Payable upon completion 07. Our promise to you
Selling costs marketing your home VAT of the full market value N/A
if L&Q secure the buyer.
and securing a buyer. N.B Historic leases may vary.*
Our fees payable to 08. Case studies
provide your buyer,
Only in line with
Management Enquiry and their solicitors Payable once a buyer
£250 inc. VAT. any government
Pack Costs with leasehold has been found.
recommendations.
information related
to your home.
*Unless otherwise stated within the lease document. Charges are correct at time of going to print in March 2022.Homebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
All about your new home 03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studiesHomebuyers
Guide
L&Q New Home Warranty
We build to extremely high standards in line with NHBC
01. L&Q Introduction
recommendations so that you can have peace of mind
from the first day you live in your new home.
02. What is Shared Ownership
Thanks to the L&Q New Home Warranty which lasts for two
years from the date of legal completion we cover any defects
that may be picked up during this period.
03. Buying Process
Alterations to your home Your rights
Any alteration or extension you The New Home Warranty does not 04. Legal Interest & Responsibilities
make to your home after purchase affect your statutory rights. Some
may adversely affect all, or part, of manufacturers also offer warranties
your warranty. Please contact the over and above the initial two-year 05. Life as a Shared Owner
L&Q Aftercare Team if you plan to New Home Warranty. Please
alter your home. They will then contact the manufacturer’s own
liaise with other L&Q departments customer services department for
06. All about your new home
if necessary. further information. We do not
protect against every problem that
Change of ownership may occur and you are obliged to
maintain your home. 07. Our promise to you
The New Home Warranty should
stay with the legal owner. It is not
affected if you sell your home. It 08. Case studies
would help if you could pass on the
details about the guarantee to
subsequent buyers. If you sell your
home, the cover automatically
transfers to the new owner.Homebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
The L&Q new home warranty does not cover 06. All about your new home
Problems with any workmanship,
&Q will not cover cosmetic
L that you will be invited to
07. Our promise to you
materials or appliances that you damage to the following items: attend along with L&Q’s Quality
have bought or added to oven, hob, hood and sink; white Customer Care Co-coordinator.
your property. goods; kitchen units and worktops; Cosmetic damage that is within
sanitaryware; shower tray and the tolerances set out in the latest 08. Case studies
Damage caused by storms or
cubicle; carpets and flooring; NHBC standards will not be
accidentally, by negligence, abuse curtains, blinds and soft furnishings; covered under this warranty.
or poor maintenance of the decoration and tiling; furniture e.g.
property or appliances. This fitted wardrobes; doors; sockets ny problems caused by natural
A
includes blockages caused by and switches; glass - unless it is shrinkage or condensation
inappropriate waste disposal. identified during the home welcomeHomebuyers
Guide
Aftercare - reporting issues
01. L&Q Introduction
In non-emergency situations we will respond
as quickly as possible, usually within five
working days. However, our response times 02. What is Shared Ownership
will depend on the severity of the problem
and the availability of parts. We expect the
majority of problems to be resolved within 03. Buying Process
20 working days. We will keep you informed
if a longer time becomes necessary.
04. Legal Interest & Responsibilities
An emergency is defined as a matter that presents
an immediate danger to the occupant or members
of the public or where further damage will result if 05. Life as a Shared Owner
the repair is delayed beyond 24 hours and/or it
presents a health hazard.
06. All about your new home
For developments within London:
lqaftercarelondon@lqgroup.org.uk
0208 189 7604
07. Our promise to you
For developments out of London:
lqaftercarecounties@lqgroup.org.uk
0208 8189 7440 08. Case studies
If you have an emergency outside of office hours,
please contact our call centre on:
0300 456 9998 or 0300 456 9996NHBC warranty or equivalent Homebuyers
Guide
All of our homes come with a ten year warranty.
These will be provided by NHBC or an equivalent provider.
01. L&Q Introduction
Your solicitors will give you a copy
of any associated documents when
you exchange. 02. What is Shared Ownership
The insurance certificate, which will be
sent separately, will show the date that
03. Buying Process
the insurance cover begins.
The warranty cover has two parts:
04. Legal Interest & Responsibilities
Initial two years – problems in your
home caused by faulty
workmanship or materials. Please 05. Life as a Shared Owner
contact L&Q about these issues.
Y
ears three to ten – insurance
for the cost of putting right and 06. All about your new home
damage caused by a structural
defect. Contact the relevant
warranty claims team to discuss 07. Our promise to you
this sort of problem.
You can contact the NHBC on
08. Case studies
0800 0356 422, or visit nhbc.co.uk
for further information.Homebuyers
Guide
Our promise to you
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studiesCustomer Charter Homebuyers
Guide
Here at L&Q we aim to make your move as seamless as possible and
provide you with a home of the highest quality, which you can be proud of.
01. L&Q Introduction
The level of service and the standards of the frequency in which we We will also offer you advice on how L&Q also offer an initial two year
that you can expect from L&Q are set will contact you. In some instances, to maintain your new home and warranty for any items that do not
out in our customer charter: there may be reasons beyond information on how L&Q’s Aftercare meet the NHBC requirements. 02. What is Shared Ownership
our control where these Service works.
Before reserving your new home timeframes may vary. W
e will provide you with health
we will provide you with all the The appointment will take and safety advice where
03. Buying Process
essential information you need to Within two months of estimated approximately one hour and will appropriate. Your health and safety
make an informed decision. This handover - every two weeks include an induction on how to is extremely important to us and in
includes the layout and specification use your heating system, consumer return we ask you that you comply
of your home, in addition to any More than three months unit and location of the stopcock. with any instructions given when 04. Legal Interest & Responsibilities
development specific information. prior to estimated handover - visiting our developments or moving
every three weeks We will provide you with a
into your new home.
We will offer a welcoming Home User Guide to help you 05. Life as a Shared Owner
environment within our marketing It is important to remember get acquainted with your home. We will provide you with an
suites, providing an informative that whilst homes are under The Guide will identify useful out-of-hours service in case of
sales process with support and construction any dates provided are information, any contact details emergency for the duration of
estimated and subject to change as 06. All about your new home
guidance throughout. you may need and how to maintain your two year warranty.
building work progresses. your home.
We will endeavour to provide
you with the opportunity to Once your home is ready and we Shortly after you have moved in, 07. Our promise to you
view your new home at the agree a completion date with you, we will make courtesy calls/visits
earliest convenience, health we will issue you with a formal to ensure you are happy with your
and safety permitting. notice to complete. new home. 08. Case studies
We will provide you with regular
Prior to completing your purchase, We will ensure your new home is
and clear communication regarding we will contact you to arrange a covered by an NHBC or similar
the progress of your new home demonstration of your new home’s industry regulated 10 year insurance
and your completion date. The many features, including the scheme, which covers the structural
timeframes below give an indication heating system and appliances. integrity of your new home.
Our Customer Charter complies with the requirements of the Consumer Code for Home Builders.
Further details are available at consumercode.co.ukHomebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
Consumer code
07. Our promise to you
What is the Code and why is it important to me?
08. Case studies
I f you are planning to buy a The Consumer Code for uying a brand new home is an
B
new home, the Consumer Home Builders (‘the Code’) exciting time. But with a new home
Code for Home Builders is was developed by the home- being one of the largest investments
there to support you. building industry to make the home you’re likely to make, it’s important
buying process fairer and more that you understand the process,
transparent for purchasers. what you’re buying and what help is
available should problems arise.
More information on the consumer code can be found here consumercode.co.ukComplaints policy/procedure Homebuyers
Guide
If you need to complain, the person you contact will take Taking your complaint further
responsibility for trying to resolve your complaint there and then.
If we still haven’t resolved the complaint to your satisfaction, 01. L&Q Introduction
If they can’t help – perhaps because How to make a complaint you can contact a designated person – an MP, a local councillor
it doesn’t relate to their part of the or a Tenant Panel – to help find a solution. Please note that at
business – they’ll pass it to the right Complaint form | L&Q Group L&Q we do not operate a Tenant Panel. 02. What is Shared Ownership
team immediately to resolve. Via our website - lqgroup.org.uk/
contact-us/complaints
This is stage one of our complaints Their role is to help resolve disputes You can access the Housing
between tenants and their landlords, 03. Buying Process
process. If you’re not happy with the Get in touch Ombudsman at any time:
resolution we offer you at this stage, which they can do in whatever way
you have the right to ask us to escalate they think is most likely to work. info@housing-ombudsman.org.uk
If you need help you with your
your complaint to stage two. complaint, please contact us: housing-ombudsman.org.uk 04. Legal Interest & Responsibilities
The designated person can also
refer your complaint to the Housing 0300 111 3000
You’ll need to explain why you don’t complaints@lqgroup.org.uk
Ombudsman Service. If you decide lqgroup.org.uk/contact-us
agree with our decision and what you 0300 456 9996 05. Life as a Shared Owner
want us to do to put it right. not to contact a designated person,
you can go directly to the Ombudsman
eight weeks after we have given you
our final response to your complaint. 06. All about your new home
07. Our promise to you
08. Case studiesCase studies Homebuyers
Guide
01. L&Q Introduction
02. What is Shared Ownership
03. Buying Process
04. Legal Interest & Responsibilities
05. Life as a Shared Owner
06. All about your new home
07. Our promise to you
08. Case studiesHomebuyers
Guide
David (45) and Toni (39) Glennon
01. L&Q Introduction
Duty Control Manager for Crossrail,
Occupation Health Care Assistant in NHS
£79,000 – a 25% share 02. What is Shared Ownership
Share Purchased of a three bedroom house
Full Market Value £316,000 03. Buying Process
Total Monthly
Outgoings £889
04. Legal Interest & Responsibilities
“
05. Life as a Shared Owner
I was working for the police at the time and
one of my colleagues suggested that I look at
Shared Ownership because there were various 06. All about your new home
Key Worker mortgages available.
We have a 3 bedroom house now. It’s exactly
07. Our promise to you
what we needed – two parking spaces, a nice big
garden for the little man and three good-sized
bedrooms. Not too big or too small, but enough
space for growth. Best of all, because it’s a new 08. Case studies
build, it’s a clean slate for us put our own stamp
on. It’s really beginning to feel like home now.
We’re really happy to be here. Shared Ownership
made it a lot easier to get on the property ladder,
we couldn’t have done it any other way.
We definitely want to staircase. Our ultimate
“
plan is to staircase to outright ownership.You can also read
