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Shared ownership succession rights

This content applies to England & Wales

Succession rights to shared ownership properties.

If a person with a shared ownership lease dies, the part of the property that is owned passes to the beneficiary of the will. The rented part passes to any successor. Where these two people are different, the tenant will have the right to occupy and the beneficiary will have the equitable interest, which would only be realised when the property is sold. The beneficiary's position would be similar where there is no successor: the landlord would have vacant possession of the property, but the beneficiary would be more likely to succeed in obtaining an order for sale to realise the equity. If there is a successor but no will, then the laws of intestacy apply.

If there is no successor and no one to inherit the equity, then the landlord will obtain vacant possession and the equity will eventually pass to the Crown or the Duchy of Cornwall or Lancaster under the laws of intestacy.[1] Many shared ownership leases have a clause to clarify these potentially messy situations.

For further information on succession rights, see the section on Succession.

[1] s.46 Administration of Estates Act 1925.

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