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HomeBuy information
HomeBuy is an affordable home ownership scheme that enables
social tenants, key workers and first time buyers to buy a share of
a home and get their first step on the housing ladder. HomeBuy
products include shared ownership and FirstBuy.
Shared ownership
Shared ownership properties are available through housing
associations. You can buy shares worth between 25 per cent and
75 per cent of a property's market value and you pay a
subsidised rent on the remaining share you do not own. You may need
to raise a mortgage to purchase your share.
You can buy additional shares at a later date until you own
100 per cent of the property. This is called staircasing and the
cost of the additional shares is based on the market value of the
property at the time that you purchase the shares. If you increase
your share in the property, your rent is re-calculated and reduced
proportionately.
If you wish to sell your property, your share is marketed for
sale by your housing association to allow other people in housing
need to benefit from low cost home ownership. The property is
resold at the market value of the property at the time of resale.
Read about a family in the shared ownership programme.
These sites below will have shared ownership
properties upon completion:
FirstBuy
FirstBuy is a new product in the government’s
HomeBuy range designed to help first time buyers into home
ownership in a way they can afford. FirstBuy support is offered
through equity loan funding of up to 20 per cent of the
purchase price split equally between the Homes and Communities
Agency (HCA) and the house builder, with purchasers being
required to raise funding (a mortgage plus deposit) of at least 80
per cent of the purchase price.
You must take out a mortgage with a qualifying lending
institution, such as a bank or building society. This
mortgage, together with any cash contribution from you, must be a
minimum of 80 per cent of the full purchase price (the maximum
full purchase price is set at £280,000.) of the property. The
Agency and the house builder will provide equal equity
loans to fund the balance needed to make up the full purchase price
of your home, up to a maximum of 20 per cent of the full
purchase price.
These equity loans must be repaid when you sell your home, at
which point you must repay the same percentage of the proceeds of
the sale to the Agency and the house builder as the initial equity
loans (that is, if you received equity loans for 20 per
cent of the purchase price of your home, you must repay 20 per
cent of the proceeds of the sale). In addition, you can, if
you wish, make voluntary part repayments of the equity loans
(staircasing).
The equity loans are interest free for the first five years.
After that, you will pay a fee on each of the equity loans of 1.75
per cent, rising annually by the increase (if any) in the Retail
Price Index (RPI) plus 1 per cent. If you purchase a home through
FirstBuy, you will have 100 per cent title to your home and
you can sell it on the open market without restriction, subject to
the repayment of the equity loans.
Local HomeBuy Agents will assess and approve your eligibility for
FirstBuy, and you need to be confirmed as eligible before you
proceed with the buying process.
These sites below have FirstBuy properties available:
Please visit HomeBuy to find out more about low
cost home ownership schemes.
Armed Forces Home Ownership Scheme
Members of the Armed Forces looking to buy their
own home could benefit from a new home ownership scheme that has
been launched by the Ministry of Defence and Department for
Communities and Local Government.
Under the pilot scheme, the government will
provide members of the Armed Forces with up to 50 per cent of a
property’s value. Unlike similar schemes, personnel will be allowed
to purchase properties anywhere in England through a single service
provider in order to meet the needs of the Armed Forces’ mobile
workforce. In addition, applicants can sub-let their properties and
will not normally pay any fees on the equity while they remain
serving members of the Armed Forces.
Regular members of the Armed Forces who have
served between four to six years and could not otherwise afford to
get their foot on the property ladder will be eligible to
apply.
Swathling Housing Society has been appointed the
scheme Agent for the Armed Forces Home Ownership
Scheme (AFHOS).
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