| Freebridge Community Housing

Frequently Asked Questions

How does Shared Ownership work?

You buy a share of a new home and then pay rent on the remaining share. You will normally be able to buy an initial share of between 25%-75% of the full purchase price and you pay a subsidised rent on the remaining share that Freebridge Community Housing owns.

The total monthly cost of the mortgage and rent will normally be less than if you were buying the property outright.

Can I buy a shared ownership home?

Your annual household income can be no more than £80,000.
You should not be able to buy a home suitable for your needs without help.
You cannot be a current home owner (or be named on the deeds of any other property) either in the UK or abroad.
You must not have any outstanding credit issues (for example unsatisfied defaults or county court judgements).

How do I apply for a shared ownership home?

You will need to fill in a shared ownership application form at www.helptobuyese.org.uk. You will also need to provide the following information:

Proof of income - 3 months of payslips or a P60
If you are self-employed 3 years’ worth of audited accounts
A mortgage in principle certificate
Proof of identity - passport or driving license.

This will be checked with your application and a check will also be carried out to make sure you can afford the property. This will confirm if you can buy through the shared ownership scheme, and the share of the property you will be able to buy.

How do I find out what Shared Ownership properties are available?

Available properties are shown above, but also advertised at www.helptobuyese.org.uk.

What is the process of buying a Shared Ownership home?

The sale

This will be dealt with by our Legal team and your solicitor who will be able to answer any questions.

Not all lenders offer shared ownership mortgages and if they do, further checks for affordability will be made.
The buyer can apply for a smaller mortgage, so the deposit may be lower.
Most shared ownership mortgages will usually only require a 5% deposit of the property value, instead of 10-20% of a normal mortgage.
The 5% deposit means you’ll only need £7,500 for a property valued at £150,000.

Completion

Once the contracts have been exchanged this means that the buyer and the seller are legally committed to the sale. A date to complete the sale will be agreed and on this date your solicitor will pass on your mortgage monies to our legal team. You’ll then be able to come and get the keys to your new home.

What do I need to consider when buying a shared ownership home?

Costs - There will be ongoing cost associated with your shared ownership property.
Mortgage - If you are getting a mortgage then you will have a monthly amount to pay.
Rent - you will be paying a subsidised rent on the share of the property that you do not own.
Service charges - you may pay some service charges particularly if there are communal areas where you are living.
Buildings insurance - you will pay a service charge for the buildings insurance to cover the property.
Home contents insurance - you will be responsible for insuring your home. We can help you to find an insurance provider.
Other costs – you’ll need to pay other bills such as council tax, utility bills, TV licence, internet etc.

Who will be responsible for repairs on my shared ownership home?

You will be responsible for all repairs and maintenance to both the inside and outside of your home. When you buy shares in a flat, we will be responsible for the shared parts.

Can I rent out the shared ownership home?

As Help to Buy is designed to help you to move on to the property ladder you will not be able to rent out the property. You must live in the home unless you buy all of the remaining shares and own the property outright.

Can I sell the shared ownership home?

You can sell your property and you will need to contact us to do this. Initially we will have 12 weeks to find a buyer for your property and after this time if this is not successful then you can sell your home through an estate agent in the normal way. You can still market the property in the first12 weeks as we may consider a sale during this time.

How do I buy extra shares for my shared ownership home?

If you would like to purchase extra shares of the property then initially you will need to contact Freebridge. Your property will need to be valued and you will also need to have solicitor so there will be legal fees to pay. Further shares can be bought as and when you wish - this process is known as Stair Casing. The rent payable on the share you don’t own will be reduce according to the total percentage of shares owned.