Sadly, many of those who instruct residential conveyancing solicitors to proceed with a shared ownership transaction may fail to take account of some of the ramifications of this type of property ownership.
For example, if you have part equity in a shared ownership property it can be difficult to sell the property on. This is because Housing Associations sometimes require that sellers buy up full equity before proceeding with a sale – inevitably, for the typically cash-strapped shared ownership seller, this can present problems.
For example, sellers may find that they have to pay stamp duty on the full value of a property (over and above their SO percentage) if they are forced to sell on the open market to a buyer willing to buy 100% of the property.
Fortunately, if a vendor has good advice from a residential conveyancing solicitor experienced in shared equity transactions, he or she will be aware that they are entitled to something called “sub-sale relief”, an arrangement that was designed to provide help to those in this very situation.
However, getting the timing of the transaction right is essential so that the vendor’s purchase and subsequent sale of the housing association stake takes place simultaneously. It can be tricky to achieve and is something that will invariably benefit from specialist property legal advice.
For advice and information in relation to shared ownership property transactions and your options, contact the residential conveyancing solicitors at Healys today or, click here for more information.