If someone purchases a 50% share in a shared ownership property and over time (less than 7 years) staircases to 100%, would this trigger a disqualifying event?
I can read the regs two ways. 1. Social housing relief can be granted for shared ownership properties (Reg 49(4)). The nature of shared ownership is that it allows people to staircase the amount of that property that they own, so I don't think the intention would be for staircasing to trigger a disqualifying event. R49(4) just says "the value...on the day on which a lease is granted...does not exceed 75% of the market value". It doesn't say anything about share increases from that point. 2. On the other hand, staircasing to a 100% share (within 7 years) would mean that property is no longer social housing, owned privately rather than by an RP/Local Authority (as I understand it). Whether it is disqualified from relief is then subject to R53(3) and how the proceeds of sale are used.
Would be interested in any views!
