Shared ownership enables the purchase of a share in a property. The purchase is usually funded through a mortgage, arranged with a bank or building society. The initial purchase is most often for 50% of the value of the property, however in some case this can be as low as 25 % or as high as 75%. The remaining share will be owned by Aspire Housing. The customer’s share is bought on a leasehold basis, with Aspire Housing retaining the freehold in the property until the property is purchased outright. Further shares in the property can be bought (in a process known as “staircasing”) until in most cases the home can be bought outright. There are some exceptions where properties cannot be purchased outright – you will be notified of these prior to purchase through the marketing materials and within the lease.
Aspire Housing will charge a rent of up to 3% per annum on the value of the share remaining in their ownership. The purchaser is responsible for all maintenance to the property. In schemes where there are communal areas the maintenance will be carried out by Aspire Housing and a service charge will be applied. Aspire Housing will take out building insurance, this will be recharged and taken with the rent. The customer will be responsible for taking out insurance to cover their contents.
Although Aspire Housing owns a part share in the property our only involvement will be to collect rent, provide maintenance to communal areas where applicable and annually inspect the property to ensure it is being maintained. Aspire will apply a monthly management charge for providing these services, which will be taken with the rent.