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DEVELOPING HOMES AND CREATING OPPORTUNITIES FOR PEOPLE WITHIN WEST NORFOLK

Keys and contract
CALL US ON 03332 404444
Phone 03332 404444

Shared ownership

Shared ownership provides an affordable way to buy a home. It does not mean you have to share your home with anyone else. If outright purchase is not an option for you then you can buy an initial share of a property and pay rent on the part you don’t own. When you buy a home as shared ownership you are the homeowner. You will normally be able to buy additional shares if you can afford to. With most properties you may eventually be able to own the property outright if you wish. A smaller deposit will be required than if you bought the property outright.

How does it 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 will own. The combined monthly cost of the mortgage and rent will normally be less than if you were purchasing the property outright.

Am I eligible?

Your annual household income can be no more than £80,000. You should not be able to purchase a home suitable for your needs without assistance. 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).

What next?

You will need to complete a shared ownership application form at www.helptobuyese.org.uk. You will also be required to provide the below information to Freebridge:

  • Proof of income - 3 months 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 verified along with your application and an affordability check will be completed. This will confirm if you are eligible and the share of the property you will be able to purchase.

How do I find out what properties are available?

Available properties are advertised at www.helptobuyese.org.uk.

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 purchaser 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 completion date will be agreed and on this date your solicitor will pass on your mortgage monies to our Legal Team. Arrangements will be made for you to collect the keys to your new home.

Further information

  • Costs - There will be ongoing cost associated with your shared ownership property.
  • Mortgage - If you are securing 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 associated with your home.
  • 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 - council tax, utility bills, TV licence, internet etc.

Repairs

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 communal parts.

Can I rent out the property?

As Help to Buy is designed to assist 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 purchase all of the remaining shares and own the property outright.

Selling the property

You are able to sell your property and you will need to contact Freebridge Community Housing to do this. Initially Freebridge will have 12 weeks to find an eligible 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 initial 12 weeks as we may consider a sale during this time.

Buying extra shares

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 instruct a solicitor so legal fees will be involved. Further shares can be bought as and when the purchaser wishes to. This process is known as Stair Casing. The rent payable on the un-owned share will be reduced according to the total percentage of shares owned.

Get in touch:
Email: enquiries@freebridge.org.uk
Telephone: 03332 404 444 and ask for the Legal Team

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