Glossary

Here is a list of terms you may encounter on your Shared Ownership journey

• Homes England: A government agency that funds affordable housing and supports housing development in England.
• Nomination period: A set time during which a housing association can offer a property to eligible applicants.
• LPE1: A legal form (Leasehold Property Enquiries) used during the sale of leasehold properties to provide key information to buyers.
• FCFS policy (First Come, First Served): A policy where homes are offered to the first eligible applicant that has expressed an interest in one of our homes and has passed an initial shared ownership affordability assessment.
• RICS valuation: A property valuation carried out by a surveyor registered with the Royal Institution of Chartered Surveyors, often required for shared ownership or staircasing.
• EPC (Energy Performance Certificate): A document showing a property's energy efficiency rating, required when selling or renting a home.
• Leasehold / Commonhold / Freehold:
• Leasehold: You own the property but not the land it stands on, for a fixed term.
• Commonhold: You own your property and share ownership of common areas.
• Freehold: You own both the property and the land outright.
• Ground rent: A fee paid by leaseholders to the freeholder, typically annually.  Ground rents are rarely included in shared ownership leases.
• Service charge: A fee covering maintenance of communal areas and buildings insurance (but not contents insurance).
• Defects period: A set time after construction (usually 12–24 months) when the developer is responsible for fixing building defects.
• Eligibility criteria: Conditions you must meet to qualify for a housing scheme (e.g., income limits, local connection).
• £500 repairs allowance: A capped amount offered to cover minor repairs when buying a home on the new shared ownership model.
• Affordability assessment: A financial check to ensure you can afford the costs of owning a home, including mortgage and rent.
• Aster application form: A form used to apply for a home with Aster Group, a housing association.
• Agreement in Principle (AIP) / Mortgage in Principle (MIP): A lender’s estimate of how much you could borrow, based on a soft credit check.
• Completion day: The day legal ownership of the property transfers to the buyer and you can move in.
• Deposit: The amount you pay toward the purchase price of a home, usually a percentage of the total.
• Conveyancing: The legal process of transferring property ownership from seller to buyer.
• Equity: The portion of the property you own outright (not mortgaged or rented).
• Housing association: A non-profit organisation that provides affordable housing, often through shared ownership or rent.
• Shared ownership: A scheme where you buy a share of a home (e.g., 10%-75%) and pay rent on the rest.
• Resale / New build / Off-plan:
• Resale: A previously owned shared ownership home.
• New build: A brand-new home.
• Off-plan: Buying a home before it’s built, based on plans.
• Staircasing: Buying more shares in your shared ownership home, increasing your equity.
• Chain: A sequence of linked property sales and purchases, where each depends on the other.
• Buildings / Contents insurance:
• Buildings insurance: Covers the structure of your home (included in service charge).
• Contents insurance: Covers your belongings (not included—must be arranged separately).
• Handover (from developer to Aster): When the developer officially transfers the completed property to Aster.
• Exchange: When contracts are signed and the sale becomes legally binding.
• Completion: When the sale is finalised and you get the keys.
• Sales progression: The process of moving from offer acceptance to completion, including legal and financial steps.
• Local connection: A requirement that you live, work, or have family in the area to be eligible for certain homes.
• Simultaneous exchange and completion: When contracts are exchanged and the sale completes on the same day—often used to speed up the process.
• Reservation fee: A non-refundable reservation fee (usually between £250-£500) that is paid to secure your new home.  The fee is deducted from the sale price on completion.