Shared Ownership – Eligible for HB

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    I suspect I know the answer but just wanted to check…

    We have a new scheme coming on line shortly and within this, there are 14 Shared Ownership properties.

    I understand that the owners will purchase a 75% share of the property and the HA will keep 25% because they don’t want the properties sold on the open market due to the nature of the scheme.

    Having met with the Housing Co-Ordinator today, she has shown me the breakdown of ‘rent’ but there is not actual rent being charged. Only eligible service charges for communal areas, building insurance etc. For the tenants who rent, these are going to be covered by HB as they are included in the overall rent but for the shared ownership properties, there is no actual rent charge.

    I think that as a result, these are considered setvice charges for leaseholders (leases will be 99 years) and as a result, they will need to claim for these through PCGC but could I just check if others think I am correct in my thinking?


    They are eligible for HB because they are one of the items listed in Reg 12(1) as eligible rent. The fact that they are payable under a long lease doesn’t matter because charges under a shared ownership lease are covered by HB.

    In other words service charges and ground rent under a shared ownership lease are dealt with in exactly the samne way as each other.


    Oh thank goodness for that! Thank you Peter! I was having hot and cold panics about that!


    We have a similar case and have worked out that the service charges are eligible but if a person owns 40% and rents 60% surely only 60% of the service charge and ground rent is eligible?


    No, any payments in relation to the shared ownership side would be eligible, subject to normal rules regarding service charges. You don’t have to apportion the charges like that.

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