Affordable homes are purchased on a leasehold basis and the lease is normally 125 years.
Home Buyers will own an equity share in the property, anything from 25% to 75% dependent on what is being offered by the vendor and financial assessment has deemed the buyer as being able to afford.
Financial ability is assessed by an independent financial advisor and homebuyers are required to buy up to their maximum affordability – there is no charge for the assessment.
Additional shares in the property can be purchased at any time; this process is known as staircasing. The price is always taken from the market value at that time which is determined by an RICS Surveyor.
Properties can be sold at any time. The housing association will normally have a 12 week period in which to find another person to purchase the property under the shared ownership scheme, however if they are unable to find a buyer, after that time the property can be sold on the open market – again the value is determined by and RICS Surveyor.
Each development will have an eligibility criteria and this can be based on the area in which applicants currently live or work and the type of accommodation currently occupied.
Additional information on shared ownership can be found here: https://sharedownership.net/what-it-means