A Home Gym in a Shared Ownership Home in England: Landlord Permission, Improvements and Staircasing Valuations

Shared ownership lets a buyer own a share of a home and pay rent on the rest. It also changes what can be done to the property. A garage conversion, a fixed rack anchored into a wall or a new floor in a spare room can all be improvements, and the landlord’s position on them can affect what is paid later. GOV.UK publishes a guide to shared ownership homes, including repairs and home improvements, staircasing and selling. This article summarises those pages, which describe the scheme as it works in England and say that Northern Ireland, Scotland and Wales have different rules. It is general information, not legal advice.

The starting point: a leasehold home

GOV.UK says all shared ownership homes, houses and flats alike, are leasehold properties. The buyer owns a share of between 10% and 75% of the market value, pays rent to the landlord on the remainder, and usually pays ground rent and service charges. Homes are offered by housing associations, local councils and other organisations, called providers or the landlord. The lease and the landlord’s key information document therefore set the rules, and the GOV.UK pages point owners to those documents for the detail. The general leasehold position for flats is covered in the guide to setting up a home gym in a leasehold flat.

What the improvements page says

The GOV.UK page on repairs and home improvements says an owner can paint, decorate and refurbish a shared ownership home, for example replacing a kitchen or bathroom, and that the landlord is not responsible for this. It says an owner might need written permission from the landlord to make structural changes, and should check with the landlord what needs permission. It also says changes to a home may increase or decrease its market value, which can affect the price when shares of 5% or more are bought in future.

For a home gym, that split suggests two categories of work:

• Decorating and refurbishing. Rubber flooring laid loose, wall mirrors hung on existing fixings, new lighting or repainting may fall on the decorating side of that line, though the lease still governs.
• Structural changes. Removing or altering walls, converting a garage or building an extension are the kind of work the page says may need written permission, and the page does not list specific examples, so the landlord decides what counts.

Why written permission affects the price of more shares

The staircasing page explains the financial side. When more shares of 5% or more are bought, the price depends on the home’s value at the time, established by a valuation from a Royal Institution of Chartered Surveyors (RICS) registered surveyor. Where improvements affect the value, GOV.UK says the valuation must show two amounts: the current market value, which includes any increase because of improvements, and the unimproved value, which ignores them.

The rule that follows is direct. If the owner has the landlord’s written permission for the improvements, the price of additional shares is based on the unimproved value. If the owner did not get written permission, the price is based on the current market value, which GOV.UK says is likely to be higher. An owner who spends money on a conversion without written permission may therefore pay more for later shares, in effect paying again for the improvement.

The page adds that shares of 5% or more may attract an administration fee set by the landlord, which it says can vary from around £150 to around £500, and that a valuation must be used within three months or the home needs revaluing. Shares of 1%, which may be available if the home was bought on or after 1 April 2021, are priced differently, using the House Price Index.

Repairs and damage

GOV.UK says an owner pays for repairs and maintenance whatever share is owned, though the building warranty or an initial repair period in the lease may cover some costs. For flats, the building owner, usually the landlord, arranges external and structural repairs, with costs divided between owners if the reserve fund does not cover them. Heavy kit affects the fabric of the building, so the guides to floor loading and weight limits and to insuring home gym equipment are worth reading alongside the lease.

Subletting and business use

The GOV.UK page on subletting says an owner can normally rent out a room in the home while living there, and cannot sublet the whole home unless they own 100% or have the landlord’s permission. It does not address coaching clients in a home gym, so a shared owner planning paid sessions should read the lease and ask the landlord, alongside the England planning guidance summarised in the guide to running sessions from a home gym.

Practical steps

• Read the lease and key information document before any building work.
• Ask for written permission before structural changes, and keep the reply.
• Keep records of costs so the value of improvements can be discussed at a future valuation.
• Check the insurance position for contents and equipment.

Frequently asked questions

Do I need permission to put a rack and rubber flooring in a shared ownership home? The GOV.UK page says decorating and refurbishing is the owner’s own matter, and written permission may be needed for structural changes. The lease sets the detail.

Does a gym conversion raise the price of more shares? Only if permission was not obtained. With written permission the price is based on the unimproved value.

Do these rules apply in Scotland or Wales? No. GOV.UK says those nations, and Northern Ireland, have different shared ownership rules.

The bottom line

In England, GOV.UK says a shared owner can decorate and refurbish but may need the landlord’s written permission for structural changes, and that permission matters financially: with it, additional shares are priced on the unimproved value, without it on the higher current market value. A home gym that involves structural work is therefore worth clearing with the landlord in writing before it starts.

Sources

• GOV.UK, “Shared ownership homes: How shared ownership works”
• GOV.UK, “Shared ownership homes: Repairs and home improvements”
• GOV.UK, “Shared ownership homes: Buying more shares (‘staircasing’)”
• GOV.UK, “Shared ownership homes: Renting out all or part of your home (subletting)”