Shared Ownership Your questions answered

Transcription

1 Shared Ownership Your questions answered

2 FRENCH Pour une traduction, composez LITHUANIAN Dėl vertimo skambinkite numeriu MANDARIN 翻译请拨 POLISH W celu uzyskania tłumaczenia, proszę zadzwonić pod numer PORTUGUESE Caso pretenda uma tradução, ligue para o SPANISH Para obtener una traducción llame al URDU ںیرک نوف رپ سا ےیل ےک ہمجرت Please Note This leaflet can be made available in larger print, in Braille, on audio CD or in an alternative language by calling Your questions answered What is shared ownership? Shared ownership is a part buy/ part rent home ownership scheme. It is designed to help people unable to purchase a home outright get onto the property ladder. Based on your household income and lifestyle, you can purchase as little as a 25% share in a property and pay rent on the remaining share. At a later date, you can increase your share all the way to 100%, although some properties are exempt from outright purchase. How does shared ownership work? The minimum share you can buy is 25% of the full market value, up to a maximum of 75%, although most of our schemes are sold on a minimum 50% share basis. By initially buying a share, the total monthly mortgage and rent cost is normally a lot less than renting a similar property privately. As your household income allows, you can purchase additional shares in increments of 10% or more. P2 Translations P3

3 Am I eligible for shared ownership? Our eligibility criteria are based on the following: Your gross household income must be less than 60,000 a year You must have funds available to cover legal/mortgage fees and a deposit You do not own or have a mortgage on any other property Your income is not sufficient to purchase a suitable property outright You are employed and have a contract for at least six months If you re self-employed you have two years audited accounts You hold a British or EU passport, or your passport is stamped with either indefinite right to remain or right to abode Any County Court judgement made against you has been satisfied. Please Note Existing homeowners may be eligible in certain circumstances, but will need approval from both the local authority where they wish to move to and the Help to Buy agent How are properties allocated? If you are unable to afford to buy a home on the open market you could qualify for a shared ownership property. Priority will be given to: Social housing residents and Ministry of Defence personnel Local authority priority groups First-time buyers. You will need to demonstrate to us that you meet the local scheme qualification criteria. An affordability check will be made before any offer is made. For some schemes you will also need to demonstrate that you have a local connection. How much do I need to earn? A minimum and maximum household income level will be required for each property we sell, but this will vary depending on the price and the location. However, you should not be able to afford the property outright and you will be offered the maximum share you can afford to buy. What about the lease? The lease is normally 99 years and is based on a model lease published by the Homes and Communities Agency. It is a legally binding document between the landlord and the leaseholder and covers the rights and responsibilities of both parties, including maintenance, rent, buying more shares and re-selling. How do I get a mortgage? When purchasing a shared ownership property it is important that you choose a mortgage specially designed for this scheme. Not all major lenders offer shared ownership mortgages, so receiving informed, professional advice from an Independent Financial Advisor with experience of shared ownership is vital. How do I decide on the right solicitor? It is advisable to instruct a solicitor who has good knowledge and understanding of shared ownership leasehold properties. You must be approved by the local Help to Buy agent You meet the income criteria for the development you are interested in P4 P5

4 What purchasing costs are involved? Mortgage arrangement fee Mortgage valuation fee Solicitor s fee Stamp duty (if applicable) Deposit Removal costs. When I move in, what will I have to pay? Monthly mortgage and rental payments Service charge Buildings insurance Contents insurance Council Tax Utility bills Other household bills. Which documents will I need to provide? Before we organise a viewing date, you will be required to provide evidence of income, including savings, any credit agreements and loans. We will also need to see a Mortgage Agreement in Principle from a bank or building society. How much is the reservation fee? Once we have approved your application and you have viewed our properties, you will need to put down a 250 reservation fee to secure the property. The fee is nonrefundable if you cancel. When can I buy additional shares? You can usually purchase additional shares after you have been in your property for one year. The property will need to be valued by an Independent Chartered Surveyor appointed on behalf of Greenfields and you, and they can establish the current open market valuation. A valuation fee will be payable. You will be required to pay the agreed proportion of the new valuation to Greenfields, in addition to your own legal and mortgage fees. With the exclusion of exempt properties, you may staircase to full ownership in multiples of at least 10%, over four stages. The last payment may be 15%. Your monthly rent payment will decrease as you acquire additional shares in your home. What if I want to sell my home? Whenever you decide the time is right to move, you must complete a Re-sale Request and Specification form, provide an Energy Performance Certificate (EPC), and pay a valuation fee for the property to be valued. Greenfields will appoint an Independent Chartered Surveyor to carry out an open market valuation. Under the terms of the lease, once the valuation has been accepted, we will normally have eight weeks to nominate any prospective purchasers. After this period, you are free to appoint an estate agent to market your share on your behalf. Any prospective purchasers will still need to be approved by Greenfields to confirm they meet the shared ownership criteria applicable to the property. What are re-sale properties? Resale properties are where the current owner of a shared ownership property wishes to sell it on. You purchase exactly the same percentage share owned by the existing leaseholder and you pay rent on the remaining share to us. Please Note You have the option of purchasing additional shares in the property, which is known as stair-casing P4 P5

5 Can I make improvements to my home? Yes, you usually can, but you will need our consent first and you must ensure the relevant planning permission and building regulations are obtained. If the improvements add value to the property we will take these into consideration when you either sell your share or purchase extra shares in the property. How much stamp duty will I pay? Homeowners buying under the Scheme should not normally incur stamp duty until they own 80% or more of the equity in their home, unless the initial share value is higher than 125,000. If you are a first-time buyer you may not have to pay any stamp duty. For an exact clarification, please contact your solicitor. What are my responsibilities as a leaseholder? When you purchase through shared ownership you enter into a lease agreement with Greenfields which is normally 99 years long. Your solicitor will explain your responsibilities but generally, they are to: Pay rent, service charge, buildings insurance and administration fees on time Not make any alterations to the structure of your property without our consent Maintain and repair the interior of your home Maintain and repair the exterior of your home (houses only). What happens next? You will need to register with your local Help to Buy Agent at Please call to speak to our Customer Services Team if you require information about specific schemes. What size property can I apply for? The local authority s Allocation Policy states the size of property you can apply for, but we may allow you to apply for properties one bedroom more than you would normally be eligible for. Can I rent out my property? You can t rent out your property. Help to Buy is designed to assist you to move on to, or up, the property ladder. You must live in the property that you purchased or rent through shared ownership. You can t use the scheme for a buy-tolet investment. P4 P5

6 Customer Service Standards Greenfields is committed to providing excellent customer services that meet the needs of everybody who contacts the association. The standards set out below are the minimum we will provide but we will aim to do better. These are Greenfields promises to you We will always: Listen to what you have to say Give our full names as part of our telephone greeting Call you back when necessary Be helpful and polite Send regular newsletters to all residents to keep you informed Give you a welcome pack before you move into your new home Offer appointments for all repairs and always keep our appointments Provide a full response to complaints within 10 working days or within an alternative timescale we have agreed with you. When you call the Customer Service Centre we will: Answer within 30 seconds Offer you a free of charge call back within 30 minutes in the event of unforeseen delays Never charge to call you back Call back when we say we will. When you write to us we will: Respond to your letter, fax or within five working days of receipt When you visit us we will: See you within 15 minutes Have a private interview room available. When we visit you we will: Always show our identity badge with photo Always respect your home Keep to our appointment time or telephone to tell you if we are going to be late. If you need help communicating we will: Make translation services available to you Make hearing loops available in all our offices Make literature available in Braille, audio format and in large print on request or provide a magnifying sheet. P10 P11

7 Visit us From 8.30am to 5pm Braintree and Witham offices: Monday to Friday Halstead office: Tuesday to Thursday Call us 8.30am 5pm Monday to Friday on (an out-of-hours emergency service is available 24 hours a day, 365 days a year by calling the same number) csc@greenfieldsch.org.uk Website Braintree - Greenfields Community Housing Ltd, Greenfields House, Charter Way, Braintree, Essex CM77 8FG Witham - Greenfields Community Housing Ltd, Guithavon House, Guithavon Street, Witham, Essex CM8 1BJ Halstead - Greenfields Community Housing Ltd, 8-10 The Centre, High Street, Halstead, Essex C09 2AJ Version 1.0