What will I be responsible for?
Your responsibilities as a shared owner are very similar to those of any homeowner.
- You will own a share of your home normally on a 125 year shared ownership lease. The lease remains the responsibility of both you and Arena.
- You will normally borrow the cost of your share from a bank or building society in the form of a mortgage and you are responsible for the repayments. We will accept a 100% loan-to-value mortgage. We cannot accept any mortgage with an interest rate of more than 4% above the Bank of England’s Base Rate.
- You will have to pay the full costs associated with buying your share. Costs to consider include valuation and mortgage fees, legal costs and search and Land Registry fees.
You will be responsible for the ongoing running costs of your home which will include:
Mortgage repayments; Rent (reviewed each year); Service charge (to cover property insurance, Arena’s management fee and, where applicable, maintenance of communal areas.); Internal and external repairs; Your own bills (gas, electricity, telephone, council tax, contents insurance etc.)
Can I buy further shares in the future?
After your initial purchase, you can buy further shares in your home and eventually own your home outright subject to individual leases. This is called "staircasing". The extra share you buy could be 10%, 20% or 30% and the price is determined by an up-to-date market valuation taken at the time of application. You would need to pay for the valuation and Arena’s administration fees. What if I want to sell in the future?
If you own your home outright (100% ownership) you can sell it on the open market (e.g. through an estate agent). If you are a shared owner and want to sell the share that you own, you must first notify Arena’s Home Ownership as we could nominate somebody from our waiting list or the Councils list. If we have nobody suitable to nominate, you would then be able to sell your share on the open market. This would need to be at the market value at that time, as assessed by an independent valuer (whose fee you would need to pay). You will need to provide Arena with your Estate Agents Details once we are furnished with the particulars surrounding your property we will advertise the property via Homeshub the Governments affordable homes specialist for Merseyside & Cheshire,Please note:
This information is given as a guide only and is subject to the terms and conditions of the lease of the property for sale. All prospective buyers are advised to take independent legal advice before going through with a purchase