The Shared Ownership scheme is also know as part buy, part rent because purchasers buy a share in their home and pay rent on the remainder.Shared owners do not share their homes with someone else, they share the ownership of it with a housing association.
In most instances, existing council and housing association tenants and people registered for housing with their local authority are given priority, but other people can also benefit from shared ownership.Most shared owners are first time buyers; others are people who have had to leave their existing owner-occupied home because of a relationship breakdown. To be considered you must be able to afford the cost of the shared ownership rent and mortgage and any service charges.
To be eligible for shared ownership you must be a British or EU citizen, or have ‘indefinite leave to remain' stamped in your passport, or have appropriate documentation to cover the eligibility of your application.If you do not have indefinite leave to remain in the UK but can provide evidence of mortgagability from a prime lender, we may be able to help you.
We will be unable to help you if you have had any arrears of rent in the last six months, or are already named on an existing mortgage or property deeds. Applicants receiving Housing Benefit will need to be assessed on a case by case basis before a decision can be made.
We will normally be able to accept your application to purchase a Shared Ownership property if you fulfill the following criteria:Your income
We believe it's important not to encourage people to take on Shared Ownership if they cannot realistically afford it. For this reason, we have set minimum income levels for as a guide for applicants as shown below:
If you are able to put a large cash sum towards a purchase you may qualify with a lower income. Please remember that these figures are a guide to the minimum income levels required to apply to purchase through the Shared Ownership scheme. For most of the new properties that we develop, buyers will need incomes in excess of the minimum levels stated above.Your savings
If you want to purchase a Shared Ownership home you will need savings. This money will be required to cover legal fees, other professional fees and any stamp duty.The minimum amount required is between £3,000 - £4,000.
You will also need to be registered with your local HomeBuy Agent.Information on how to apply can be found at www.homebuy.co.uk
Shared owners pay a monthly rent on the share that has not been purchased. There will usually also be a monthly service charge
to cover items such as buildings insurance, management and cleaning and maintenance of communal areas.
The minimum share of the equity you can purchase is determined by the Housing Association and you will be required to pay a subsidized monthly rent on the unsold share of the equity to the Housing Association. However, you may choose to purchase additional shares if that is affordable to you. You may also choose to staircase (buy more shares), as that option becomes affordable to you at a later stage. We have a team of inhouse specialist who are able to advise and assist you with this.
There is no bedroom size restriction and you can apply for any size of property.
Yes, you can take in a paying guest or lodger, as long as you are still living in the property and do not sign a tenancy agreement. It would make good financial sense, however, to verify through an Independent Financial Advisor IFA that the costs of home ownership are affordable to you prior to purchase. I would also advise you to double check the lease with the HA you are dealing with beforehand.
No, you may not rent the property out.
Shared Owners do not have a Statutory right to extend their lease. However, Hyde will grant its Shared Owners a Voluntary lease extension. To be eligible the following must apply:
No there is no age restriction on eligibility. However, if you require a mortgage you will need to be over 18 years old and mortgage lenders will assess your age in respect of the amount of mortgage years you have available to you. The older you are, the mortgage company may require a higher deposit.
When you buy a share in a property through an approved Shared Ownership scheme you may have to pay Stamp Duty Land Tax. You can find more information of Stamp Duty for Shared Ownership properties on the HM Revenue and Customs website at https://www.gov.uk/guidance/sdlt-shared-ownership-property
In Hyde’s case, there is an internal approval process to ensure they are feasible and will not weaken the structure of the building , for example.
The criteria and sales process is the same as buying a newbuild property. However, you are buying the property from the existing shared owner rather than Hyde.
This is determined by the Service Charge team at Hyde. They work in conjunction with the Project Manager for the development to determine which materials have been used, their probable longevity, building insurance costs and also which facilities are available, such as lift, communal gardens etc, as well as what the cost of maintaining them would be. A sinking fund is also factored in for future replacements.