Shared ownership is a way to buy a home. It is cheaper than buying a whole house. You buy a share of the property. You pay rent on the rest. But, can you rent out a shared ownership property? This is a common question. The answer is not simple. Let’s explore.
Understanding Shared Ownership
First, let’s understand shared ownership. You buy a part of the property. The housing association owns the rest. You pay mortgage on your share. You pay rent on the housing association’s share. This makes it easier to get on the property ladder.
The Rules
Each shared ownership scheme has rules. These rules are strict. You cannot rent out the property without permission. The housing association sets the rules. They want to help people buy homes. Renting out is not always allowed.
Why Renting Out Is Not Allowed
- Shared ownership is to help people buy homes.
- Renting out might defeat this purpose.
- Housing associations want to keep homes for buyers.
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Getting Permission
You may want to rent out your property. You need permission from the housing association. This is not easy. You must have a good reason. Reasons might include:
- Job relocation
- Family reasons
- Financial hardship
The housing association will consider your reason. They may allow you to rent out the property. This is usually for a short time. You must follow their rules.
Steps to Get Permission
- Contact the housing association.
- Explain your reason.
- Submit any required documents.
- Wait for their decision.
If you get permission, you can rent out your property. If not, you must follow the rules.
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Subletting
Subletting is different from renting out. In subletting, you rent out a part of your home. This is usually not allowed in shared ownership. The housing association must agree. You must follow their rules.
Why Subletting Is Not Allowed
- Shared ownership is for buyers, not renters.
- Subletting can cause problems.
- Housing associations want to avoid these problems.
Selling Your Share
If you cannot rent out, you can sell your share. This is a common solution. The housing association may help. They can find a buyer for your share. This process is called “staircasing.”
Staircasing
Staircasing means buying more shares. You can buy more shares over time. This can lead to full ownership. When you own 100%, you can rent out the property. This is a long-term solution.
Frequently Asked Questions
Can You Rent Out A Shared Ownership Property?
Yes, but you’ll need permission from the housing association.
What Is Shared Ownership Property Rental?
Renting part of your home while owning the other part.
Do I Need Permission To Rent My Shared Ownership Home?
Yes, from the housing association.
Can I Sublet My Shared Ownership Property?
No, subletting is usually not allowed.
Conclusion
Can you rent out a shared ownership property? It depends on the rules. You need permission. This is not always easy. Understand the rules. Follow the steps. Consider selling your share. Or, think about staircasing. These are your options.
Shared ownership helps many people. It makes buying a home easier. But, renting out is not simple. Know the rules. Make the best choice for you.