1 Oxfordshire s biggest affordable homes show SHARED OWNERSHIP HELP TO BUY RENT TO BUY Help to Buy South The Kassam Stadium, Autumn 2014 EVENT GUIDE Find out about homes and schemes available, including the Government s Help to Buy and Shared Ownership schemes
2 hello and Welcome Welcome to Help to Buy South s Show! At today s event, we hope you will find lots of useful information about how to get on, or move up, the property ladder. *Deposit required will depend on individual circumstances. Views expressed within the adverts listed in this event guide are not those of Help to Buy South. We ve got together a selection of different home builders, scheme providers and specialist advisors to help you on your journey, whether you are just finding out about your home ownership options, or you d like some more specific advice about the schemes and homes on offer. Already registered with Help to Buy South? Let us know if you need to update your application, otherwise you might want to head to the Independent Financial Advisors (IFAs) Village first, before chatting to the Housing Associations and House Builders about the homes available to buy or rent. Not registered? Don t worry! Visit the Help to Buy South stands first and our expert team will be able to explain the application process, depending on which scheme you would like to apply for (don t worry, the application is free!), as well as talking to you about the different scheme options available. So who s at today s event? Typically, the Housing Association exhibitors will be showcasing developments and homes you can purchase or rent with the Shared Ownership and Rent to Buy schemes. They will be able to explain their own buying processes, as well as answering specific questions about the schemes. The house builders will be able to show you the developments they have in the area, available to purchase without any financial assistance, or with the Help to Buy Equity Loan scheme. Not sure which scheme is which? Don t worry, we ve included handy guides to the schemes in this event guide. Remember, don t be scared to ask questions! No question is a silly one and everyone at today s show is here to help. How will I know what I can afford to buy or rent? Financial assessments are available for free from the IFAs. The advisors are often busy throughout the show, so please be aware assessments will be for a maximum of 15 minutes to illustrate what you can raise in a mortgage, what deposit you will require, and how much it will approximately cost per month. If you are self employed, please be aware mortgage lenders will require you to provide at least 2 years of accounts. Other services such as solicitors, and local authorities are also on hand to provide you with free advice at the event. In this guide... The ultimate guides to the Help to Buy schemes, including: Shared Ownership Help to Buy Equity Loan Rent to Buy Want to know how the schemes really work? Read real life purchaser stories Room plan FREE advice!
3 Room plan Help to Buy Agent Table 1 Help to Buy South Search Pod Table 2 Table 3 Help to Buy South Help to Buy South Visit our interactive search station to take a look at all currently listed properties in the Help to Buy South geography. Fire exit Fire exit Housing Associations 7 Table 4 Catalyst Housing Table 5 Soha Housing Ltd Table 6 Sovereign Housing House Builders Search pod Table 7 Persimmon Homes Table 8 Solicitors David Wilson Homes 9 5 Table 9 Bower and Bailey Local Authority Table 10 Cherwell District Council Table 11 South Oxfordshire & Vale of White Horse District Councils Fire exit 4 Fire exit Money saving experts Table 12 uswitch Building Society 3 Table 13 Newbury Building Society Independent Financial Advisor Village (IFAs) 1 2 Fire exit
4 What are the costs involved? the guide to Help to Buy Equity Loan If you want to buy a new home but are struggling to raise a large deposit, Help to Buy Equity Loan could help. What is Help to Buy Equity Loan? Launched on 1st April 2013, the scheme enables purchasers to buy a new build property with a 5% deposit and borrow up to 20% of the value of the home from the government as an interest-free loan.* You will need to be able to raise a 75% mortgage to cover the remaining cost of the home. Who can apply? This scheme is open to both first time buyers and next time buyers looking to purchase a new, potentially bigger or more suitably-sized home and move up the property ladder. The home you purchase with the Help to Buy Equity Loan must be your sole and only residence. You must be able to afford to raise a large enough mortgage to cover 75% of the purchase price, as well as have access to a 5% deposit of the property purchase price. Top Help to Buy example As well as your 5% deposit, there will be other standard fees involved such as mortgage arrangement fees, solicitor fees, reservation deposit and stamp duty. Stamp Duty Land Tax rates are currently: Purchase price of home Up to 125,000 Over 125,000 to 250,000 Over 250,000 to 500,000 Over 500,000 to 1 million Stamp duty rate Zero 1% of full purchase price 3% of full purchase price 4% of full purchase price You may also have monthly or annual service charges, depending on the property that you purchase. *The equity loan is interest free for the first five years, but in the 6th year of ownership, a fee of 1.75% of the market value of your property at the time you purchased is applicable, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%. This is applicable if you have not paid back your equity loan by the end of year 5. What homes are available? Help to Buy Equity Loan is available on new build homes only. Approved developers of the scheme are listed on our website helptobuysouth.co.uk and you will need to contact them directly for further information on what homes they have available. There are no limitations on the number of bedrooms in the property you purchase. For example, if a single person can afford to purchase a 3 bedroom house, they will not be restricted. The maximum purchase price for a home purchased with the scheme is 600,000, depending on your affordability.
5 When do I have to pay the equity loan back? The term of the loan will run for a maximum of 25 years, depending on the term of your mortgage. At the end of this period, the full loan will need to paid back. Remember you have borrowed a percentage of home s value, so whatever the value of the home at the time you come to pay back (known as redeeming your loan) or you sell your home, you will be paying back the percentage borrowed or outstanding. For example: Home purchased for: 200,000 20% equity loan received: 40,000 Home now valued at: 220,000 20% equity loan to pay back: 44,000 Further information on paying back your equity loan can be found in the Help to Buy Buyer s Guide. What happens when I want to sell my home? If you have not yet repaid your equity loan when you sell your Help to Buy home, you will repay the equity loan simultaneously. You can sell your home at any time and an independent valuer must decide what it is worth. Further information on the application and purchasing process, including details about the equity loan can be found on our website. VISIT THE WEBSITE FOR FURTHER INFORMATION ON THE SCHEMES
6 the guide to READ THE FULL GUIDE ON OUR WEBSITE Shared Ownership Looking to get on the property ladder? Shared Ownership might be your answer. What is Shared Ownership? Shared Ownership is a well respected product that has been helping people into home ownership for the last 30 years. It is tried and tested! Purchasers buy a share ranging between 25% - 75% in a home, paying a low cost rent on the remaining share they do not purchase. It can often be an affordable alternative to renting or buying on the open market, and unlike purchasing on the open market, you don t need to raise a deposit based on 100% value of the property, just for the share that you are purchasing. Right New home owners
7 Who can apply? What are the costs involved? If you are registered with Help to Buy South, you may already be eligible for Shared Ownership. You must: Be a first time buyer or an existing home owner whose household needs have changed but can t afford to buy another, more suitable home Have a household income of less than 60,000 Have savings of approximately 2,500 for fees, as well as a deposit if you are buying a home Applicants will be prioritised for a property as and when they apply for a specific home or development. This is done by the individual Housing Association you are hoping to buy from. Priority will be given to: Council and housing association tenants Serving military personnel Applicants given a high priority by the Local Authority. For example this may be families, or people living or working in the area This may vary from development to development, so contact the Housing Association directly for more information when applying. If you already own your own home, including existing Shared Owners, and you need to purchase a larger home but are unable to because of financial constraints, you may be eligible. In this instance you will need to demonstrate that you are in housing need and have the support of your local authority and/or have sold your home prior to applying. To apply for a specific Shared Ownership home or development, you must first be registered with your Help to Buy Agent. You will need to be able to raise a mortgage to buy at least the minimum share available, as well as having a mortgage deposit available. This may be 5-10% of the value of the share you are purchasing. However, remember you will be expected to purchase as much of the property that is affordable for you. Other costs to consider include: Reservation fee This will be taken off the total purchase price Mortgage arrangement fees This will vary depending on your financial advisor and mortgage lender Valuation fee This is a requirement of your mortgage application Legal fees You may be given details of recommended solicitors Monthly service charges Again, these will vary from property to property Can I buy further shares later on? You may have the option to purchase further shares depending on your lease. This is known as Staircasing. There is no obligation to do this and you can stay forever as a Shared Owner if you like. If you buy further shares, the rent you pay on the share you do not own will go down. A surveyor will normally assess the value of your home based on the market value at that time, so that the value of further shares can be calculated. If house prices increase, you may have to pay more to buy another share than when you originally bought it. What homes are available? Homes available to buy on Shared Ownership will be listed on the helptobuysouth.co.uk website. They may range from studio apartments to 3 or 4 bedroom houses. You can apply for a home with one bedroom above your current needs. For example, a single person or couple could apply for a one or two bedroom property, whilst a single parent with a child could apply for a three bedroom home. This will also depend on what you can afford to buy. Besides brand new homes, you will often see older homes advertised for sale on the same Shared Ownership basis. This is where an existing Shared Owner may decide to sell their home and move on. These are known as Shared Ownership Resales. Other than the age of the home, you will only be able to buy the same sized share or greater than the current owner which may be higher than minimum shares on offer with new build properties. Who pays for repairs and maintenance? You will have the full responsibility of repairs and maintenance for your home. This will include annual gas boiler services. However, if you buy a brand new home, the developer may have a period of time during which they will be liable for any defects. Flat owners will have to carry out repairs inside their flats but are not usually responsible for external and communal areas such as stairways and communal gardens as your service charge will contribute towards this. What happens when I want to sell? You can get advice about selling your Shared Ownership home from the Housing Association that dealt with the original purchase. The terms of your lease will specify a nomination period whereby your share can be marketed for sale by the Housing Association you originally purchased through. This means the property can be recycled, allowing other people in housing need to benefit from affordable home ownership. Their charge to do this may be cheaper than if you were to sell through an estate agent. The property is resold at the market value of the property at the time of resale. If your Housing Association is unable to find a buyer for your share, it may be possible to sell your home on the open market but you will have to pay the full cost of the estate agent fees yourself. Standard costs will include a fee for the resales service, a valuation report, an Energy Performance Certificate and solicitors fees.
9 the guide to Rent to Buy Intermediate Rent Sometimes referred to as discounted rent, there are some new and re-let homes available to rent. The rents are approximately 20% cheaper than those on the open market, which will enable you to possibly clear any debts or save towards a deposit to buy a home through one of the Help to Buy schemes at a later date. Rent to Buy With this scheme, you can save towards a deposit to buy the home you are renting, usually within 3-5 years. If your circumstances have changed and you are no longer able to afford to buy, your landlord may review your tenancy. Please note that there is no guarantee that your tenancy will be renewed after each of the agreed periods. Please note there is very limited availability for Rent to Buy homes. VISIT THE WEBSITE FOR FURTHER INFORMATION ON THE SCHEMES
10 CASE STUDY OTHER REAL LIFE PURCHASER STORIES CAN BE FOUND ON OUR WEBSITE Chris Leigh and Gordon Griffiths Andover Privately renting is often the only option for many people when they move out of home, but long term, lots of hopeful first time buyers would much prefer to be paying their own mortgage, rather than someone else s. And that was exactly the case for Chris Leigh, from Andover. My partner, Gordon, and I were renting, but after getting together a small deposit, we decided to look in to ways of getting on the property ladder for ourselves explains Chris. We visited the sales office at the development to see what homes would be in our price range and that s when we were told about the Help to Buy Equity Loan scheme. Help to Buy Equity Loan is a government backed scheme available to help first and next time buyers take a step onto, or move up the property ladder. The scheme is offered to assist the purchase of selected new build homes, with the support of an equity loan up to 20% of the value of the home. After completing the required financial assessment, Chris was delighted that he could purchase a one bedroom coach house at the new development, just round the Now we have all of our personal belongings around us, the place seems much bigger! If it wasn t for the scheme, we would not have been able to buy our own home. It s been a great opportunity for us. Previous situation: Privately renting Scheme: Help to Buy corner from where he works as a Station Enquiry Officer for Hampshire Police. We reserved the home off-plan so had to wait a few months before being able to move in, but that just made it more exciting! As a first time buyer the paperwork was a bit daunting but we had it all explained to us every step of the way. Chris and Gordon now pay just 500 a month to own their own home, and they only needed a deposit of 6,600; far more achievable than the potentially tens of thousands of pounds needed to step on the property ladder without the Help to Buy Equity Loan scheme. The couple are now looking to the future in their brand new home.
11 CASE STUDY Jessica Lingham Waterlooville Having her own independence and taking the next step in life by owning a property is what Jessica Lingham (23), a veterinary nurse from Waterlooville, had always wanted to achieve. Previous situation: Living at home with parents Scheme: Shared Ownership I wanted a place of my own and knew that I had little chance of buying somewhere on the open market. said Jessica. One of my friends recommended the Shared Ownership scheme, so I began researching it on the internet to find out more. Jessica was living at home with her parents as renting was too costly in the area. As soon as she was able to save a small deposit, Jessica began searching for the perfect property she had always hoped for. I m currently working but also studying at college, so I need my own space to focus on my work. My partner, Joe, also stays with me, so I wanted my own home where we can spend quality time together she added. After researching the Shared Ownership schemes and registering with Help to Buy Agent, Jessica discovered Timothy Walk, a new development in Waterlooville. Perfectly suited and near to town, but with countryside on her door step. Buying my first home was easy and stress free I contacted the housing association selling the homes, viewed the property and did not hesitate to confirm my interest. The whole process was easier than I thought. The financial advisor was so helpful and the team were always there to offer help and advice explained Jessica. Jessica purchased a 35% share of a two bed, top floor, modern apartment for 145,000. With a mortgage of 50,750, she pays just 470 in monthly mortgage and rent payments, which is a fraction of what she would have to pay if she purchased a similar property outright on the open market. I would always recommend Shared Ownership for people struggling to get onto the property ladder. It is a great scheme and I would like to thank everyone involved who helped me throughout the whole duration. This made the process of buying my first home easy and stress free.
12 Thank you We hope that you ve enjoyed our event and gained lots of useful information to help you with your new home hunting! Outside the exhibition room, you will find several tables and chairs for you to sit and review the information and brochures you ve collected at today s show. The bar will be open should you wish to purchase any refreshments. We will also have a feedback station which we d be grateful for you to take 2 minutes before leaving the event to let us know what you think. We value all feedback about our services and events, so we d really like to hear from you. Alternatively, you can when you get home. Should you have any questions after the event, do not hesitate to get in touch via our dedicated Customer Service Team on or Thank you for visiting Help to Buy South s show. Help to Buy South FURTHER INFORMATION CAN BE FOUND ON THE WEBSITE
13 All the photos used in this event guide are of REAL properties available and of REAL purchasers
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