Shared Ownership and Home Buy
Shared Ownership is specifically designed to
help those who cannot afford to buy a property outright on the open
market. From the 1st April 2006 Bedford Pilgrims Housing
association have been appointed zone agent for Bedford to carry out
all marketing and applications for shared ownership
schemes.
Shared ownership is a part buy, part rent
scheme. The relevant Housing Association helps you by letting you
buy a share in the property that you can afford, usually between
25% and 75%. You then pay rent to the Housing Association for the
part you do not own.
Over time you can buy extra shares in your
property until ultimately, you could buy out the Housing
Association by 'staircasing' up to 100% to become a full
owner-occupier. However, the price you would pay for the extra
shares is based on the full value of the property at the time you
want to buy the shares, not on the original price you paid.
Therefore, if the property goes up in value you will have to pay
more for the next share than you might have done originally and if
property prices go down, you pay less.
It is important to check whether you can buy
shares up to 100% ownership on each shared ownership property as on
some developments there is a maximum you can buy, particularly in
rural areas where affordability is even more of a problem and it is
important for houses to remain affordable in these areas.
As the share of the property you own increases
(along with mortgage payments), the rent level decreases.
HomeBuy
Homebuy is
targeted at Council and Housing Association tenants to enable them
to buy a home on the open market. It consists of an interest free
loan of 25% of the value of the property to help buy through the
private housing market and is lent by the Housing Association, in
the Bedford area this is Bedfordshire Pilgrims Housing
Association.
You would need to contribute the remaining 75% of the purchase
price of a home through a mortgage and personal savings. The loan
is tied to the value of the property that you buy and is not repaid
until the property is sold.
The money available for Homebuy is limited, so
not everyone wishing to take part can do so.
Do you
want to own your own home but can't afford to buy
outright?
...then Open Market
HomeBuy may be the answer.
Open Market HomeBuy is a government-backed product that aims to
help certain groups of people who cannot afford to buy a home on
the open market without assistance. The scheme provides
access to additional money called equity loan(s), which run
alongside a conventional mortgage loan.
Who can
apply?
Existing council or housing
association tenants
People on the housing waiting list
Key workers
Some other priority first time
buyers
People coming out of a relationship
breakdown who need to buy a new home
How does the scheme
work?
You would need to raise at
least 82.5% of the price of the property via a mortgage and/or
savings and Keyhomes East can provide up to 17.5% of the value
through an interest free equity loan. When you come to
sell the property you repay the loan as a percentage of the
property value at the time they sell, i.e. 17.5% of the new price
of the home.
More information on Shared Ownership and Homebuy can be obtained
from bpha on 0845 456 6757, email info@keyhomes-east.org.uk or
click on the following link Key Homes East.
Key Homes East
Poster
Please see the document below from Key Homes East offering help
about how to join the property ladder.
Help to join
the property ladder