Portsmouth City Council

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Shared ownership housing

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What is shared ownership

Shared ownership is a home-buying scheme, that allows you to own part of a property (between 25% and 75%), and the council owns the rest. As a Portsmouth Homes shared owner, you pay rent on the part we own.

Shared ownership can help people who can’t afford a home, get on the property ladder. Shared ownership is often more affordable than buying a home outright as it allows you to buy more shares of your property as and when you can afford it. This is called staircasing.

Buying more shares in your home (Staircasing)

Staircasing is the process of buying more shares in your home until you own 100%. Once you own all of your home, you will usually get the freehold if it’s a house with a standard lease.

The main benefits of staircasing are:

  • Owning more of your home.
  • Paying less rent.
  • Getting more value if your home increases in price.

How staircasing works

The cost of buying more shares depends on the current market value of your home. An independent surveyor, chosen by the council, will value your home. This valuation is valid for three months.

  • You can usually buy shares in 10% steps or larger shares if you can afford it.
  • If you own a multiple of 5%, one of your purchases must also be a multiple of 5% to reach 100%.
  • Each time you buy shares, you will have to pay legal fees, so it’s better to buy a bigger share if possible.

Staircasing costs and fees

  • Valuation fees: You will pay for the surveyor’s valuation.
  • Legal costs: You will pay for your solicitor and legal charges, including ownership transfer and Land Registry registration.
  • Stamp duty: This may apply; your solicitor will let you know.
  • Management charges: If a management company is involved, you may need to pay the council back for any charges already paid.

Rent and service charges

  • Once you own 100% of your home, you will no longer pay rent.
  • You may still have to pay service or management charges. This will be explained in your offer letter.

Staircasing time scales

Staircasing usually takes one to three months and must be completed within the three-month validity of the valuation.

Selling your shared ownership home

You can sell your home at any time, whether you own part of it or all of it. The steps to sell your shared ownership home are as follows:

  1. Let us know: Write to us at leaseholder@portsmouthcc.gov.uk before you start the process.
  2. Get a valuation: Arrange for your home to be valued.
  3. Find a buyer: You can use any estate agent.
  4. Get approval: Once you find a buyer, let us know who they are. If you are selling a share, the buyer must pass an eligibility check.
  5. Pay legal fees: You will need to pay our legal fees. We will let you know the cost in advance.

If you only own a share, you could buy the rest of the home and sell it outright. Contact us for advice.

Living in your shared ownership home

Home improvements

You don’t need permission for small jobs like decorating or putting up shelves.

For bigger changes, such as extensions or structural work, you must get permission from Portsmouth Homes.

Repairs on your home

You are responsible for repairs inside your home.

For repairs in communal areas, like corridors or shared doors, contact the council repairs team.

Rent and service charges

  • Rent and service charges are usually paid by Direct Debit on the 1st of each month. If you want to pay another way, contact us.
  • If you are struggling to pay, contact us straight away for help.
  • Rent is reviewed every year, and you will get at least four weeks’ notice of any changes.
  • Service charges are estimated each year, and the accounts are audited. If there is a surplus, it will be refunded to you. If there is a deficit, you will need to pay the difference.

If you don’t pay your rent or service charges, you could lose your home.

Lodgers and subletting your shared ownership home

Lodgers

You can take in a lodger, but you must:

  • Make sure they follow the terms of your lease.
  • Get permission from your mortgage provider.
  • Let us know.

Subletting your shared ownership home

Shared ownership homes are meant to be your main home, so subletting is not usually allowed. In some cases, you can apply to sublet for up to six months. You will need written permission from us and your mortgage lender.

Lease extensions and living flexibly

Flexible tenure

If you are struggling financially, the council may be able to buy more of your home and give you a cash lump sum. This will increase your rent but can help you stay in your home. Contact us to discuss your options.

Extending your lease

If your lease has less than 80 years left, it can be harder to sell your home because most lenders won’t give mortgages for short leases. You can apply to extend your lease at any time.

It’s best to extend when your lease has about 85 years left. After 80 years, extending becomes much more expensive.