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ARTICLE · 09 JUNE 2023

Shared Ownership Leases Are Long Leases, And Why It Matters For Landlords

Gowling WLG
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In Avon Ground Rents Limited v Canary Gateway (Block A) RTM Company Ltd [2023] EWCA Civ 616, the Court of Appeal confirmed that, even where a shared ownership lease has not staircased to 100%.

United KingdomReal Estate and Construction
Dominic Morris
Dominic Morris
Şenay Nihat
Şenay Nihat
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In Avon Ground Rents Limited v Canary Gateway (Block A) RTM Company Ltd [2023] EWCA Civ 616, the Court of Appeal confirmed that, even where a shared ownership lease has not staircased to 100%, it is still a "long lease" for the purposes of the Commonhold and Leasehold Reform Act 2002, and could form Right to Manage (RTM) companies. We explore what this means for landlords, and note that it remains to be seen whether this case will go to the Supreme Court.

What is a shared ownership lease?

Shared ownership leases are often seen as more affordable way for people to get onto the housing ladder, because a smaller deposit and mortgage is required - people buy a share of a property and then pay a subsidised rent on the remaining share. Over time, owners can buy further shares in the property, known as 'staircasing', until they own the property fully (100% staircased).

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