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One of the key advantages to the Shared Ownership scheme is that it provides an opportunity for first-time buyers to get onto the property ladder. By only purchasing a share in a home, you pay a much smaller initial deposit whilst still enjoying the perks of homeownership. But who pays for necessary repairs and maintenance on a Shared Ownership property?
In short, Shared Owners are the ones who cover the cost of any necessary repairs or maintenance work for their property, irrespective of how large a share they own. The only exception to this rule is if you are covered by an ‘Initial Repair Period’.
Keep reading to learn more about Shared Ownership repair and maintenance costs and other monthly charges.
When you purchase an initial share in a Shared Ownership home, you will typically become a leaseholder. This makes you the legal owner of the home, and will therefore make you responsible for any repairs or maintenance your property requires. This includes any external and structural repairs that may be required, unless it is agreed that your landlord will cover the cost of this work.
Learn more about some of the costs associated with Shared Ownership by reading our detailed blog: Is Shared Ownership Cheaper Than Buying A Home Outright?
It is important to check the terms of your lease agreement to see if you are covered by an ‘Initial Repair Period’, as this protection was only introduced by the government in 2021. During this period, which usually lasts for ten years and only applies if you own less than 100% of your home, there are certain repairs which will be covered by your landlord. These repairs are typically limited to:
While in an Initial Repair Period, your landlord cannot add the cost of these repairs to your service charge or use a reserve fund to pay for the repairs.
Find out more about how to reach 100% ownership of your home by clicking here.
If you are purchasing a new-build Shared Ownership property, you will be protected against defects by New Home Codes. This means that any defects that arise during the specified period – usually ten years – due to poor design, materials or workmanship will not be for you to cover the cost to repair.
You will generally cover Shared Ownership maintenance costs via a monthly service charge. Your service charge will provide an estimate of the costs that are required to complete any repairs or maintenance, and will often include a contribution to a reserve or sinking fund.
While you have a legal right to be consulted on service charges, an estate rentcharge is slightly different. These payments are usually required by developers or a property management company to secure payments required towards the cost of maintaining communal areas.
For those who live in a shared building, your service charge will include the cost for maintaining and repairing:
It is, however, the responsibility of your landlord to arrange for this essential work to be carried out.
Learn more about affordable housing options by reading our detailed blog: Is It Better to Rent or Get a Shared Ownership Property?
At Plumlife, we are committed to matching our outstanding range of Shared Ownership homes with the ideal tenants. View our available properties online today, or learn more about the process of Shared Ownership by clicking here.
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