WHAT IS SHARED OWNERSHIP? Shared ownership, also known as 'Part Buy - Part Rent', is a scheme operated mainly by Housing Associations which enables you to buy a share of the property, normally 40% although higher percentages are available up to 75% (subject to affordability) and pay a subsidised rent on the remainder. The more of the property you own, the less rent you pay.
HOW DOES THE SCHEME WORK? For illustrative purposes:
• Open Market Value - £200,000
• 40% share - £80,000
• Deposit (based on 5%) - £4,000
• Rent (illustrations available upon request from Cooper and Tanner Cheddar 01934 740055)
This means that your monthly outgoings are split, part mortgage and part rent. Once you have bought your initial share, the remainder of the property can then be purchased as and when your circumstances change. Meaning that you could own 100% of the property eventually.
ELIGIBILITY CRITERIA There are a number of criteria which need to be considered when thinking about shared ownership as an option. Guidelines are below.
- You must not be able to afford a suitable property that fulfils your needs on the open market.
- Your household income must not exceed the maximum income limit for the scheme. Please contact us for further information.
- You must have enough savings to cover Solicitors fees and the general expenses of moving (approximately £2,500).
- You must be a first time buyer, or an existing home owner * whose requirements (due to size of family mainly) are for a larger property that is unaffordable on the open market.
- You must be registered with the relevant Help to Buy Agent for the area in which you wish to buy
* subject to Local Authority approval.
OTHER CONSIDERATIONS - Applicants such as divorced / separated coupled can also be considered as long as they sold their previous property.
- You must be able to arrange a mortgage through a 'High Street' or other reputable lender.
- You may have to demonstrate a local connection to the area in which you wish to buy. Further information is below.
- You may need to be registered with the local Authority (Council) in the area in which you wish to buy.
- Applicants who have been in mortgage or rent arrears within the last 12 months are not eligible.
- Applicants who have County Court Judgements (CCJ's) within the last 12 months are not eligible.
LOCAL CONNECTIONS The homes are built under a Section 106 Agreement with the Local Authority which ensures that the housing provided is sold or rented at affordable prices; and both the affordability and restricted occupation for qualifying local people is protected in perpetuity. To qualify, prospective purchasers will need to be able to show a local connection to Cheddar, or close by. So, for example, you may have grown up here, gone to school here, you may work here, or have family who live here. Priority is usually given to people who work or live in the same parish. Please call our office on 01934 740055 if you would like to discuss the qualifying criteria further.
WHAT NEXT? Please contact Stonewater Housing Associations' Sole Selling Agent Cooper and Tanner, Cheddar on 01934 740055 if you would like further information, to register your interest in a specific plot or to make an appointment to view the site (once it is safe to do so).