Your responsibilities as a Shared Owner
Mortgage repayments and rent payments
The amount that you will pay on your mortgage will depend on the
amount that you have borrowed and on the interest rate. You will
have to pay rent according to your lease. Payments are due on the
1st of the month and are made by direct debit.
If you are having difficulties paying your rent it is very
important that you contact us and your lender as soon as possible.
If you fall behind in paying your rent or service charges we may
take legal proceedings against you. Failure to pay your mortgage or
rent may ultimately result in the loss of your home.
Service charges and sinking funds (flats and maisonettes)
If you buy a flat or maisonette you will pay service charges and
in some cases into a sinking fund. You will be advised of what you
will need to pay before you purchase. Service Charges are the
shared costs of communal areas of the building for example
lighting, door entrance systems.
The Sinking fund is to set aside money on a regular monthly
basis towards the cost of the future major maintenance and repairs
of the building of which your flat forms part.
Insurance
Somer Community Housing Trust will insure the building and
recover the cost of doing so through a monthly charge. There is
normally a £50 policy excess. This means that you pay the first £50
of any claim you make. You will need to take out a separate
insurance policy to insure the contents of your home.
Utility bills
You will be responsible for all household utility bills,
including water and Council Tax.
Repairs
When buying a property through shared ownership you will be
responsible for all repairs and maintenance to the property in the
same way as any owner-occupier.
Alterations and improvements
If you wish to carry out any work to your property you need to
contact us so that we can give you written permission. You may also
need to seek planning permission or building regulations approval,
You may also need to get approval from your mortgage lender.
Buying more shares
If you wish to purchase further shares in your property this is
called staircasing. you can find out more by downloading the
staircasing procedure below.
Staircasing procedure
Selling your property
If you want to sell your property, you will need to contact us.
You can find out more by downloading the leaflet below.
Selling a shared ownership property
procedure