Find out more about the process of buying a Shared Ownership home with Sage. We break down the process into bitesize chunks - from reserving a property to applying for a Shared Ownership mortgage, and ultimately getting the keys to your new home.
How do you reserve a Shared Ownership property?
Once you have found the ideal home for you, if it is built, you can book a viewing with the local Sales Agent. If you are buying a Shared Ownership home that is still under construction, you have the option to reserve it ‘off plan’. The Agent will run through all the plans and property details with you and advise you when filling out all the necessary paperwork.
How much of the property can I afford?
The Agent will be able to put you in touch with an Independent Financial Advisor. The Advisor will help you determine the maximum share value that you can purchase by carrying out an affordability assessment. At this stage, you don’t need to meet in person – this process can be done online or over the phone. The Sales Agent will submit your information to Sage and once approved Sage will send you an online application form.
Once Sage receive the application form and it is approved, we will continue to work closely with the Sales Agent throughout the sales process, right up to completion and handing you the keys to your new home.
What happens next?
Shared Ownership reservation fees
Once your application has been approved, you will need to pay a reservation fee to secure the property of your choice. The reservation fee will later be deducted from the balance on completion. Please note that once the legal process has started, if you change your mind about the purchase, this fee may not be refunded.
Once you have reserved your home, you should receive a formal offer letter with all the details of the sale. You will need to sign and return this to the Agent along with the required documents listed below.
Payslips for the previous 3 months (or if you are self-employed, either two years of accounts audited by a chartered accountant or HMRC tax assessment for the last two years.)
Bank statements need to be certified
Proof of ID, this must be a certified copy of your passport or driving licence
- Proof of address, this must be a certified document in the form of one of the below*:
- Bank Statements
- Council Tax Bill
- Utility Bill
- Driving Licence can be sued as proof of address if passport is used as proof of ID
- Evidence of deposit - If your deposit is gifted, we require a signed letter confirming the amount, as well as ID, proof of address and evidence of funds from the gifter. (Please note that we cannot accept screen shots as evidence).
*Please note that we cannot accept a phone bill.
Applying for a Shared Ownership mortgage
If you are taking out a Shared Ownership mortgage, you can do this with the help of a Financial Advisor or by approaching a lender directly. You could use the IFA that completed your Shared Ownership affordability assessment. Once the MoS has been issued, you must then submit your formal mortgage application as this can take up to 21 days to be granted.
Once submitted, your application will be assessed by the lender’s underwriter. A valuer will attend the property on behalf of the lender to confirm the property value is agreed. If both are happy, the mortgage offer is usually issued within 7 days of the valuation. If you have any concerns or haven’t received your offer within 3 weeks of submitting your application, speak to your IFA and ask them to chase it up for you.
Appointing a solicitor
You will need to appoint a solicitor to act on your behalf. We strongly recommend using a solicitor that has experience in the Shared Ownership buying process. We can provide you with a list of some from our recommended panel.
Once you have formally appointed a solicitor, we then issue the Memorandum of Sale (MoS) to both your solicitor and the one acting for Sage. The MoS is an important document that outlines the details of your purchase and the terms of the sale. This will include the date by which we expect you to exchange contracts. This is typically 28 days from the date that the MoS was issued.
During the 28 days, your solicitor will receive a copy of the draft lease, as well as the contracts to read through and raise any enquiries they may have. Once they are happy with everything, they will send the contracts to you to sign.
Once you have signed your contacts and sent them back to your solicitor, they will contact you to transfer your exchange deposit. Once the solicitor has received your deposit, they will then contact Sage solicitors to exchange contracts.
After contracts have exchanged, if the plot is built your completion will follow 5 – 10 working days after exchange. If your plot is still in the process of being built you will exchange on notice and once they plot is ready to move into your solicitor will be notified and you will have 10 working days to complete.
Once Sage have received completion funds, the Sales Agent will contact you to arrange a time to handover the keys to your new home.