Low Cost Home Ownership in Wrexham County Borough

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1 Low Cost Home Ownership in Wrexham County Borough

2 What is Low Cost Home Ownership? Low Cost Home Ownership aims to assist people who cannot afford to purchase a property on the open market suitable to their needs. Wrexham County Borough Council works with housing associations and developers to provide low cost homes that are affordable. There are four types of Low Cost Home Ownership available: Discount for Sale properties Shared Ownership Homebuy Shared Equity This leaflet gives you more information on each type so you can see whether you are eligible to apply and which would be suitable for you. Discount for Sale These are homes within private housing developments that are sold by the developer at less than the open market value. Discount for sale enables you to purchase a property at a fixed percentage of the open market value, which is generally between 50% and 80%. This means you purchase 100% of your new home without having to pay the full purchase price. The discount agreement is written into the legal agreement and will apply if you sell your home in the future.

3 Shared Ownership Shared ownership allows you to buy a share of your new home and to rent the other part from a housing association. Shared ownership is particularly suitable for people with a regular income who wish to buy their own home but cannot afford to do so in the usual way. Shared ownership means that you will have sole right of occupancy. You need a mortgage and/or savings to finance the share you are buying and then you pay a monthly rent and service charge to the housing association for the unsold share. Normally applicants buy a 50% share but you may purchase a smaller or larger amount. The size of the share depends on your income and savings. The higher the amount you purchase, the lower the rent you pay. If you can afford to do so, you can purchase further shares in your house up to a maximum amount, which on some schemes could be up to 100%. Example: 1 bedroom apartment worth 85,000 50% mortgage for 42,500 weekly rent of & service charge of (average) Homebuy Homebuy helps people to buy a property on the open market. It is funded and supervised in Wales by the Welsh Assembly Government. You need to be able to finance 70% of the purchase price of your new home through a mortgage and/or savings. A housing association then provides you with a loan for the remaining 30% of the price.

4 There are no monthly payments to make on the loan, but the 30% share has to be repaid to the housing association if you sell your home in the future. You can repay the loan at any time; the amount you repay will be 30% of the value of the property at the time you sell it. The maximum purchase price available is set by the Welsh Assembly Government and is dependant on the size of your family and the size and type of property you purchase. Shared Equity Shared Equity is similar to Homebuy. A Housing Association or Local Authority has an equity share in the property, which is usually around 20 30%. There are no payments to make on the equity share and you have the option to staircase up to 100% if your financial circumstances change. Do I qualify for Low Cost Home Ownership? To be eligible for the scheme you must be: Over 18 years of age Be a British or EU/EEA citizen or have Indefinite Leave to Remain stamped in your passport. Living and/or working in Wrexham County Borough for at least the past 12 months or have lived in the County in the past. Able to meet the long term financial commitments of home ownership

5 The scheme is not available to those who: Are not British or EU/EEA citizens and whose passport is not stamped with Indefinite Leave to Remain Can afford to buy a property on the open market Things to consider In addition to the price of buying your new home, there will be other costs that you will need to consider. These costs include: Mortgage fees the Mortgage Provider may ask for a valuation fee and an arrangement fee to secure your mortgage Deposit Most Mortgage Providers require at least a 10% deposit so it is important to ensure that you have access to sufficient funds to cover this. Legal fees you will need to appoint a solicitor to act on your behalf to buy your new home Moving costs if you are moving house, you may have to pay for removal costs Ongoing costs remember you will have to pay your mortgage repayments, utility bills and council tax Buildings and Contents Insurance you will need to make sure you have adequate cover for your new home. Service Charges In some cases, you need to pay a service charge to the housing association on top of your mortgage. Repairs and maintenance costs as you will own your home, repairs and maintenance will be your responsibility It is important to take these costs into consideration when looking into home ownership to make sure you are able to afford all the fees and costs associated with buying a home.

6 How do I register my interest in Low Cost Home Ownership? You need to be registered on the Council s waiting list for Low Cost Home Ownership, which is operated for Wrexham County Borough Council by Cymdeithas Tai Clwyd. The registration form is enclosed and asks for some details about your current situation and your housing need. Please complete this form and return it to Cymdeithas Tai Clwyd, where your details will be stored on our database. We will be able to let you know whether you would be eligible for Low Cost Home Ownership, based on your income and housing need, using the information you supply. We will only use your details for this purpose and we will store them in line with Data Protection legislation. If you are eligible for the scheme your details will be passed on to the relevant housing association for consideration when suitable properties become available. They will contact you to request further details. Please note that being on the waiting list does not guarantee that you will get a property. Nominations for schemes are prioritised according to how long you have been on the Waiting List. For more information please contact Cymdeithas Tai Clwyd: Affordable Homes Team Cymdeithas Tai Clwyd 54 Stryd Y Dyffryn Denbich LL16 3BW Tel: affordablehomes@taiclwyd.com

7 Frequently Asked Questions How long will I have to wait for a property? The waiting time is dependant upon a number of factors including how many properties become available, how long the waiting list is and the type and location of the property you are looking for. The more flexible you are in terms of location the more likely you are to be considered for a property. Do I have to live or work in Wrexham County Borough to buy a property? Anyone is free to apply, but in most cases any new housing which is available for low cost home ownership is offered to those who have a local connection with the area. If there is no one with a local connection the search is usually widened to include people from outside the area. What happens when I want to sell my home in the future? In the future if you decide to move, you are only able to sell it to people who meet the eligibility criteria set by the housing associations for Low Cost Home Ownership. You will need to offer the home back to the housing association that allocated it to you and they will find suitable applicants. What if I have rent arrears? Will I still be eligible? When you apply for a mortgage, all Mortgage Providers will ask for a reference from your current landlord. If you have rent arrears, or if you have had arrears in the past, this may restrict the amount of money you can borrow or may prevent you from obtaining a mortgage.

8 What size home am I able to buy? You will only be considered for a property that meets your needs rather than what you would like. For example, a single person or couple will only be considered for a 1 or 2 bedroom property. If I buy a shared ownership property, can I buy further shares in the property? Depending on the scheme, you may be able to buy up to 100% of your home. Some schemes restrict the amount of the share you own in the home to a maximum amount, for example 75%. How much do I need to earn to be eligible for Low Cost Home Ownership properties? This is dependant upon other factors including the amount of savings you have and any equity you may have in other property. Generally if you earn less that 12,000 per year you would not be eligible for Low Cost Home Ownership properties, but each application is considered individually. Housing Associations We currently work with the following Housing Associations Wales & West Cymdeithas Tai Clwyd Unit 2, Acorn Business Park 54 Stryd Y Dyffryn Aber Road, Flint Denbigh CH6 5YN LL16 3BW Tel: Tel: Pennaf/Clwyd Alyn Muir Group 72 Fford William Morgan Oakmere House, St Asaph Meres Edge, Helsby LL17 0JD WA6 0DJ Tel: Tel: