Shared ownership housing
trained to help
with a whole
range of legal
queries"
Judith Dorkins, Partner
As house prices have risen considerably over the last decade, many people have found it difficult to raise a mortgage and buy a property outright, and so a succession of affordable housing schemes have been set up.
These have enabled people to buy a share in a property providing the benefit of owning their own home with the option to purchase the remaining share when circumstances and finances allow.
What is New Build HomeBuy?
New Build HomeBuy is the latest term for the current government-backed affordable housing shared ownership scheme.
Who's it for?
All key workers, existing social housing tenants, and those in priority housing need are eligible to buy under this scheme.
Up to four people can enter into shared ownership, but all joint applicants must jointly and individually meet the eligibility criteria.
You can register with the relevant HomeBuy Agents. They will send you details of the scheme together with an application form.
Buying a property under New Build HomeBuy
There are a number of rules to adhere to, and further details can be found by looking at our conveyancing frequently asked questions.
If you're eligible, you can initially buy 25%, 50% or 75% of the property value with the benefit of mortgage finance.
The outstanding share is then rented from a registered social landlord, typically a housing association or local authority, for an affordable rent.
You may buy additional shares until you own 100% - known as 'staircasing' - determined according to the market value at the time you elect to buy a further share.
Selling a property under New Build HomeBuy
When you wish to sell your shared ownership in the property you may first be required to offer it to another household nominated by your landlord for the agreed market rent. If you've fully staircased your property and now own 100%, you should be free to sell it like any private property owner.
Your landlord may wish to buy the property back from you to offer to other households who want to enjoy low-cost shared ownership. They'll tell you if they want to do this when you inform them you wish to sell. The property is sold at market value and you'll benefit from any equity built up on the share you own.
What do I do next?
Call us for free advice on how to apply for eligibility under New Build HomeBuy, and advice about the process and associated costs of purchasing your home.
We successfully help people every month buy their dream home under this shared ownership scheme.
Important things to consider
Bear in mind that property prices can go down as well as up. Benefits may be different between rental and combined rental and mortgage arrangements.
