Shared Ownership Surveys: What You Need to Know

Shared ownership helps thousands of first-time buyers get on the property ladder in Milton Keynes every year. But many make a critical mistake: assuming that because they're only buying a percentage, they only need partial checks. This couldn't be further from the truth.

What Is Shared Ownership?

Shared ownership allows you to buy a share (typically 25-75%) of a property and pay rent on the remaining share owned by a housing association. It's designed to help first-time buyers and those who can't afford to buy outright.

Do I Need a Survey for Shared Ownership?

YES, absolutely. While you're only buying a share, you're responsible for 100% of all repairs and maintenance. A survey protects you from unexpected costs.

Common Misconception

"I'm only buying 50%, so I only need half a survey, right?"

Wrong. You pay 100% of repair costs regardless of your ownership share. If the roof needs replacing (£15,000), you pay the full £15,000—not just your percentage.

Who Pays for the Survey?

You do. As the buyer, you're responsible for commissioning and paying for your own survey. The housing association won't arrange this for you.

Typical Costs:

• RICS Level 2 Survey: £400-£600 for flats/apartments
• RICS Level 3 Survey: £600-£900 for older properties or houses

Which Survey Level Do I Need?

RICS Level 2 (Homebuyer Survey) - Most Common

Choose this if:

• ✅ Buying a modern flat or apartment (built after 1990)
• ✅ Property appears in reasonable condition
• ✅ Standard construction type
• ✅ No obvious defects or concerns

RICS Level 3 (Building Survey) - For Older Properties

Choose this if:

• ✅ Property built before 1990
• ✅ Any visible defects or concerns
• ✅ Older building (Victorian, Edwardian)
• ✅ Property has been significantly altered

Special Considerations for Shared Ownership

1. Leasehold Issues

Most shared ownership properties are leasehold. Your surveyor should check:

• Remaining lease length (ideally 80+ years)
• Service charge reasonableness
• Building maintenance history
• Communal area condition
• Major works planned or required

2. Service Charges

Identify potential future service charge increases:

• Roof condition (replacement = major cost)
• External decoration needs
• Lift maintenance (if applicable)
• Communal heating systems

3. Staircasing Implications

If you plan to "staircase" (buy additional shares), defects affect:

• Future property value
• Ability to sell your share
• Ongoing repair costs

What If the Survey Finds Defects?

Your Options:

1. Request price reduction based on repair costs
2. Ask housing association to fix issues before completion
3. Proceed and budget for repairs
4. Walk away if defects are too serious

Reality Check:

Housing associations are less flexible than private sellers on price. However, they may:

• Fix major safety issues before completion
• Provide evidence of recent repairs/maintenance
• Adjust rent to reflect property condition (rare)

Red Flags for Shared Ownership Properties

🚩 Major Concerns:

• High service charges (£200+ per month) with poor building maintenance
• Major works planned requiring large service charge increases
• Short lease (under 80 years remaining)
• Serious structural defects (subsidence, major damp, roof failure)
• Cladding issues (especially post-Grenfell - can make property unmortgageable)

Questions to Ask Before Commissioning Survey

Questions for Housing Association:

1. When was the building last externally decorated?
2. When was the roof last inspected/repaired?
3. Are there any major works planned in next 5 years?
4. What is the service charge, and what does it cover?
5. Is there a sinking fund for major repairs?
6. Can I see recent service charge accounts?

Questions for Your Surveyor:

1. Do you have experience with leasehold flats?
2. Will you inspect communal areas?
3. Can you estimate future maintenance costs?
4. Will the report include service charge commentary?

Cladding and Fire Safety

Critical for flats over 18m (6 stories):

Essential Checks:

• ✅ EWS1 Form (External Wall Survey) - required for mortgage
• ✅ Fire Risk Assessment up to date
• ✅ No ACM (Aluminium Composite Material) cladding
• ✅ Building Safety Certificate (for new legislation)

Shared Ownership vs Full Ownership: Survey Differences

Real-Life Example

Top Tips for Shared Ownership Surveys

1. Don't skip it: You're responsible for 100% of repairs
2. Choose the right level: Level 2 for modern, Level 3 for older
3. Inspect communal areas: These affect your service charges
4. Check lease details: Length, ground rent, service charges
5. Verify fire safety: Essential for flats, especially high-rise
6. Review service charge accounts: Look for patterns of major works
7. Budget for findings: Start saving immediately for identified issues
8. Consider future staircasing: Defects affect resale value

When to Walk Away

Consider not proceeding if survey reveals:

• ❌ Major structural defects requiring expensive repair
• ❌ Unsafe cladding with no remediation plan
• ❌ Service charges likely to increase dramatically
• ❌ Short lease (under 70 years) and housing association won't extend
• ❌ Building in very poor condition overall