Shared Ownership Terms & Conditions

Terms and conditions and guidance notes, financial and purchasing, and things you need to know

Early bird reservation terms and conditions

Following your conversation with your Sales Consultant, you’ll be aware this is an early bird reservation only and not a formal reservation. The property sale is not guaranteed until further checks have been carried out at the point of formal reservation.
SNG are also unable to confirm any specification of the property at the point of an early bird reservation other than the bedroom numbers at the property and type of property.
Please be advised that any changes to your financial circumstances (e.g. taking out a loan) may impact on your affordability re-assessment at the point of formal reservation, which could result in your application being rejected.
Please be aware for the avoidance of any doubt, that SNG reserve the right to withdraw the early bird reservation at any time, or to not grant a formal reservation if:
1. You do not disclose any changes which negatively affect your affordability re-assessment or any other pre-reservation check prior to an early bird reservation.
2. You fail any affordability re-assessment or pre-reservation checks after an early bird reservation is taken.
3. Your circumstances have changed, and you no longer meet any of SNG’s policies relating to Shared Ownership.
The early bird reservation is valid for 12 months from the date of the confirmation email.
We have an Anti-Money Laundering procedure, which includes ID and financial checks to make as part of the purchase of a property - full details of this process can be seen here, we will require this information upon formal reservation. If you are receiving a gifted deposit, the giftor will also have to complete Anti-Money Laundering checks.
The properties are valued by an independent chartered surveyor every 3 months. If the values change between early bird and formal reservation, the new financial assessment will be based on the latest values received. If your application no longer meets the financial requirements necessary to meet the new value of the property, you will be unable to purchase the property and SNG have the right to withdraw your application.
In some cases, a local connection is required to be approved for a property, should your local connection change prior to formal reservation, SNG reserve the right to withdraw your application.
You will be required to pay an early bird reservation deposit of £150, with the remaining £100 to be paid on formal reservation.
You will have the right to cancel your early bird reservation within 14 days of the email confirmation and receive a full refund of your £150 deposit.
Please note that if you withdraw from the purchase for any reason whatsoever following the 14-day cooling off period, then you agree that we will retain the full amount of £150 of your deposit towards our administration costs. However, if your financial assessment fails on the formal re-affordability check, SNG will refund your full £150 deposit.

Share values

Properties for Shared Ownership are independently valued by RICS registered surveyors in-line with local market conditions. Valuations are typically valid for 3 months, if the valuation expires during the transaction and the exchange deadline has passed, the value of the home may change.
Share prices quoted on our website and in our advertising are set as an example of the share you can purchase, but in some cases you may be able to purchase more or less shares than advertised in-line with either your affordability or factors set by SNG (Sovereign Network Group), the Local Authority or Homes England’s Capital Funding Guide.

Before you reserve your new home

The marketing literature provided to you is for guidance purposes only and the tenure of any of SNG’s properties neighbouring your new home may, at any time, be subject to a change i.e. from Shared Ownership to a rented tenure.
CGIs may depict a typical SNG property at the development. Photography of interiors are for illustration purposes only and may not reflect actual interior finishes.
Our New Build homes selection choices for kitchens and bathrooms have already been made as part of the contract with the developer. We will share details of the specification with you, but there is no option to change any of the pre-agreed selections.
You need to inform us if you have any pets, as some pets are not allowed under the terms of the Shared Ownership lease of a flat or maisonette (without specific consent). Usually, domestic pets are only permitted in houses.
You will be required to undergo an application process, to include budget planner by a member of our panel of Brokers. You are not required to use the same broker to arrange your mortgage (if required). If the details of your approved budget planner change after acceptance, you must notify us immediately. We will require non-panel brokers to complete a revised budget planner and justify the reason for the change, as per our panel process. If the application no longer meets affordability criteria, eligibility criteria or SNG's internal policies, the offer will be withdrawn.
New Build properties are valued by an independent chartered surveyor every 3 months. If you are approved to reserve a property, to hold the price you will need to exchange contracts by the deadline date. After that point, if the property price is adjusted, you will be required to pay any increase in value and your application will be reassessed. If your application then doesn’t meet the financial requirements necessary to meet the new value of the property, you will be unable to purchase the property. In any event SNG reserves the right to withdraw the reservation if contracts are not exchanged by the deadline date.
SNG reserve the right to withdraw from the reservation if contracts are not exchanged by the deadline date. The deadline will be confirmed by our solicitors to yours when contracts are issued.
If you have received a County Court Judgement (CCJ) registered against you, please declare this when you are obtaining mortgage advice. The CCJ(s) must have been satisfied, and you must be able to provide a certificate of satisfaction in order to proceed with your application. For further information, please refer to the Adverse Credit policy, available here.
If you do not require a mortgage, we will need the following documents to verify your earnings:
Should your credit check show missed payments or arrears, and SNG are not satisfied with your ability to make your monthly rental payments, we reserve the right to withdraw an offer of sale. For more detail, please refer to the Adverse Credit policy, available here.
If you are divorcing and buying a home before your divorce is finalised, to ensure that you remain eligible for Shared Ownership and the home remains affordable for you once your divorce is finalised, SNG may request sight of notarised court documents during the application process.
Incentives may be available on certain plots on select New Build developments only and will be linked to the successful exchange and completion of your sale. Failure to meet the terms associated with the incentive will result in the incentive offer being withdrawn.
Where SNG do not work with the local authority to allocate properties, we use our own allocation process. To apply for a property a customer must complete an initial application and budget planner with one of our panel brokers. The broker firm for the development will be provided as part of the application process. You must use the broker listed for the property you are applying for, failure to do so could result in delays to the application.
Applications are approved on a first come first serve basis. For new builds & Resales, this would be the first customer to provide a completed application via our Broker panel, that is deemed to be affordable. For resale homes, a full application also includes a requirement to view the home.
Where SNG work with the Local Authority to allocate our homes, there may be delays to our standard timeframes.
If your application is successful, and to fully reserve the agreed property, you will be required to complete the online reservation and declaration form which will include advising SNG of your solicitor or conveyancers details acting on your behalf, as well as your mortgage broker details. You will also be required to pay a reservation deposit of £250. There is a 14-day cooling off period, which means within the first 14 days of reserving a home with us, you can withdraw and receive a full refund. After this, cancellations will result in £200 being retained by SNG to cover our solicitor abortive fees.
We have an Anti-Money Laundering procedure, and several ID checks to make as part of the purchase of a property - full details of this process can be seen here. All buyer’s and giftors will be required to complete Anti-Money Laundering checks as part of the process. Where necessary we will share information with third party organisations to prevent or detect fraud; these agencies include but are not limited to; the police, local authorities, DWP and HMRC.
On certain developments we will instruct partnering agents to act as our Sales Consultants and will deal with the sales process on our behalf, including applications, reservations, and site updates. If applicable, then this will be stated in the development advertisement on our website.

During your purchase

You will need a solicitor. SNG offers an approved panel of solicitors on our website, all of which have experience dealing with Shared Ownership purchases. Please note we cannot recommend a solicitor to you, and you are welcome to use another solicitor not listed on our panel. Where you opt to use a solicitor who is not familiar with new build or Shared Ownership and refuses to proceed on the basis of standard contracts and replies to enquiries, we reserve the right to withdraw from the sale.
We strongly suggest that you obtain full written quotes before instructing your chosen solicitor. In addition to the conveyancing charge, disbursements may be charged i.e. searches, telegraphic transfers of money, land registry etc. Conveyancing charges will differ from one solicitor to another. You will be asked to supply funds for your searches immediately; most other costs will be payable on completion of your purchase. You will also have to pay an engrossment fee to our solicitors for preparing the lease and a notice fee to SNG for registering your mortgage. Please contact any of the firms listed and they would be happy to provide a quotation for your purchase.
Your mortgage needs to be from a recognised high street mortgage lender and an appropriate product for the tenure. Before receiving advice from a Broker, you should ask if there is a charge. The amount of your mortgage should not exceed the share of the share you are buying. We will not accept a mortgage guarantor.
To ensure your mortgage application is not delayed, please ensure that you are registered on the local electoral register. To find the contact details for your local office, click here.
Please provide a copy of your mortgage offer as soon as available. You must notify SNG should the financial details of your application change following your initial affordability assessment. You will also be required to re-complete the affordability checks and budget planner. Changes can result in your application no longer meeting the relevant criteria. Please speak to your Sales Consultant for further information.
The property will be reserved for a maximum period listed as your exchange deadline. Your exchange deadline date will be issued when the draft contract documentation is issued to your solicitor. In the event that contracts have not been exchanged by the deadline date, we reserve the right to withdraw the reservation. We will proceed to remarket the property which may be result in a difference in the price should it require an updated RICS valuation.
You have the right to withdraw from your purchase at any time before contracts are exchanged.
Provided the matter proceeds to exchange of contracts and completion, the £250 reservation deposit will be used in part payment of the final price that you pay for your new home, which will be reflected in your completion statement. Until you exchange contracts, your purchase is subject to contract.
You will be responsible for all costs incurred whether or not the matter proceeds to exchange of contracts and completion including all costs relating to your mortgage arrangements and to extending your mortgage offer.
Lender product fees can be added to your mortgage up to the value of £1500. For product fees over this amount, you will need to pay your lender in advance, as they will not be accepted as part of your borrowing against the home.
When a home is purchased off plan, SNG are fully reliant on the developer delivering the property on the date of proposed handover. Delays on New Build developments are common, so please ensure you are prepared should the date of proposed handover slip. Your Sales Consultant will keep you fully informed of any delays and site progress throughout your sale. SNG will not accept liability for any cost incurred relating to the delay, for example, mortgage extension fees, storage costs, temporary accommodation etc. We strongly advise you do not serve notice on your current accommodation prior to being given a fixed completion date by your solicitor, as delays could still occur until this point.
Where construction of the property is not finished by the exchange deadline date, we will require contracts to be exchanged with completion on 10 days’ notice. Where the property is finished by the exchange deadline date, we will exchange contracts with a fixed completion date, and we will require you to complete no later than 10 consecutive days after contracts have been exchanged. Bank holidays are not included in this timeframe.
In the majority of cases, SNG will have contracted to purchase the property from a developer. In some cases, the legal transfer of ownership to SNG and registration of title at the Land Registry may not have been completed at the time of reservation or by the deadline date. This is common for new build homes, as there is often a back log at the Land Registry. We will provide your solicitor with the relevant application number at the Land Registry as proof this has been submitted. We will still require you to exchange contracts by the deadline date, failure to do so on account of the registration can lead to the offer of sale being withdrawn. Full details will be set out in the contract pack sent to your solicitor.
The special conditions of your purchase are detailed on the online reservation form. Upon signing the reservation and declaration form and paying the reservation deposit you are agreeing to the special conditions.
The first month’s rent, plus any apportionment due when you move in will be collected by your solicitor on completion. Please note you could be asked to pay a maximum of 2 months’ rent in advance, depending on your completion date.
If you have reserved your new home off plan, all viewings will be subject to the developer’s approval to grant safe access to the site. The timescales given for viewing arrangements may be subject to change. You will still be required to exchange contracts on or before exchange deadline, even in the eventuality that an internal viewing is not possible due to Health and Safety requirements on site. Failure to exchange contracts prior to the deadline due to lack of access could result in the offer of sale being withdrawn.
Stamp Duty Land Tax (SDLT) - For information and advice please speak directly with your solicitor or contact HM Revenue & Customs.
Service charges may apply to some developments; an estimated breakdown is available and will be provided to your solicitor as part of the process. Service charges on new build homes are estimated for the first year, following this a revised charging schedule will be issued that reflects the true cost of the services provided. This could result in a change to the year 1 figure.
For data protection, if you are purchasing as a single applicant, please advise us in writing of anyone you wish us to liaise with on your behalf if you are not available. We will not be able to disclose details of your application unless written permission has been provided.

After you’ve moved in

Rent is payable on the share you are not purchasing and will be debited from your account on the 1st of each month. You will be asked to complete a Direct Debit form on completion.
If you can foresee or experience problems in paying the rent and/or mortgage you should notify SNG immediately. Late payment of rent or mortgage is serious as this will accrue arrears and could result in your home being repossessed.
The rent will increase annually on the 1st April each year. The increase will be based on the Retail Price Index or Consumer Price Index figure (subject to the terms of your lease) for the September prior to the increase plus 0.5% for RPI or plus 1% for CPI.
Building insurance will usually be covered by SNG and is in addition to your rent. A summary sheet will be provided to you on completion. Sometimes insurance may be covered by an external management company and your solicitor will be given details. We strongly advise not to store items in the loft space as this may invalidate your insurance.
If your home includes any appliances, you will need to register them with the manufacturer to receive any associated warranty. It is important you do this as soon as possible after completion. SNG will not register any warranties. You must always ask the Customer Support Team at SNG for permission if you are thinking about making any alterations. You should be aware that there is no guarantee that the amount you spend on improvements will be reflected in an increased value for your home and SNG may share any increase in value on a sale of your share where we are still retain equity in the property.
Leaseholders have full responsibility for maintenance and repairs to the home. The developer will normally have a twelve-month aftercare policy covering any building defects. The twelve month period begins from the date the properties were handed over to SNG. This may be earlier than the date SNG hands the property to you.
Depending on the type of funding used by SNG to buy your home, you may be entitled to an initial repair period, with a contribution towards certain repairs. Please check your lease or speak to your Sales Consultant for further details.
Under the terms of your lease Shared Owners may not rent or sub-let their rooms. There are certain exceptions to this, please refer to our subletting policy, please refer to your lease or contact our Customer Specialist team for more information.
Your lease allows you to borrow extra money against your property only to;
1. Change or transfer the names on your mortgage.
2. Buy more shares in your property.
3. Make essential repairs to your home that are not improvements.
4. You may not re-mortgage to pay off debts or to buy goods.

Buying extra shares

You can buy further shares in your home following completion; this process is called ‘Staircasing’. A RICS (Royal Institute of Chartered Surveyors) registered valuation report is required in order to agree the open market value of the property at the time of the request. Depending on your lease, you may be responsible for the cost of this valuation.
The share price will be calculated in relation to the most recent valuation. Once you purchase additional shares your rent will decrease as you own more of the property. The way that the rent is calculated will remain the same. The minimum percentage share that you can purchase will be determined by your lease. In some cases, your lease will cap the maximum share you can purchase through staircasing.

If you complete the staircasing process up to 100% and then decide to sell, in some cases you must first offer the property back to SNG at the current RICS market value as SNG can choose whether or not to nominate a buyer or buy the property back. This condition applies for 21 years following a 100% staircase.

Selling your home

If you choose to sell your share of the property, in accordance with your lease, SNG is allowed up to four weeks to find and approve a suitable purchaser. The purchaser will need to be financially assessed in the same way you were when you purchased your home. This may mean that SNG will not be able to approve all interested parties. If a purchaser is not found within this timescale you can sell the property on the open market at the valuation price through an Estate Agent. Administration and legal costs will apply.
In some cases, a Local Connection may come into effect when selling your home. Please refer to the contract documentation provided to your solicitor upon your initial purchase.
For Resales, a current RICS (Royal Institution of Chartered Surveyors) valuation is required before a Shared Ownership property can be marketed. The property must be advertised at the RICS valuation price throughout the nomination period. If the nomination period is waived, the RICS valuation must still be upheld during the first four weeks of marketing. Any proposed change to the marketing price must be submitted in writing to SNG for approval. SNG will confirm in writing whether the revised price is approved before the seller may proceed. Once a marketing price is approved, it is fixed and non-negotiable—offers above or below this price will not be considered. Further requests to amend should be submitted in writing to SNG. In cases where the seller is staircasing to 100% ownership and simultaneously selling the property, the value of the final share will be based on the higher of the RICS valuation or the actual sale price achieved.

Right to Buy

The Right to Buy scheme is subject to specific, statutory criteria and timescales. Please refer to our Right to Buy policy for further information.
We may share your National Insurance number in order to prevent and investigate tenancy and Right to Buy applications fraud.

Refer a Friend

The refer a friend scheme is available on certain developments only. Referrals can only be made by existing customers of SNG who are currently Shared Owners or renting. Referrals must be made in advance of reservation and the customer applying should make their Sales Consultant aware of the referral before paying the reservation deposit.