Is shared
ownership
right for us?

Shared ownership.
How it works.

Shared Ownership gives first time buyers and those that do not currently own a home the opportunity to purchase a share in a new build or resales property.

The purchaser pays a mortgage on the share they own, and pays rent to a housing association on the remaining share. Because the purchaser only needs a mortgage for the share they are purchasing, the amount of money required for a deposit is usually a lot lower when compared to the amount that would be required when purchasing outright.

The purchaser has the option to increase their share during their time in the property via a process known as ‘staircasing’, and in most cases can staircase all the way to 100%. In this instance, the shared owner will no longer pay any rent, just their mortgage along with any service charges and ground rent.

 

Why buy a Shared Ownership home?

Shared Ownership is essentially for people who would like to own their own home but can’t afford to buy on the open market. Shared Ownership costs are usually lower than other housing options for a number of reasons:

  • The rent is less than the rate charged on the open market and usually charged at 2.75% of the property value per annum.
  • In the case of Oaklands buyers will typically by 50% shares though lower and higher shares may be possible subject to affordability.
  • Your deposit will be 5-10% of the price of the share, not of the full market value of the whole property.
  • Stamp Duty Land Tax (SDLT or simply ‘stamp duty’) can generally be deferred until your share reaches 80%.

When I part-buy/part-rent my home, what am I buying?

Effectively you are buying a leasehold house or flat, and in the case of Oaklands, a new build home. However, as you cannot presently afford to buy a home outright, you are paying rent on the portion that you can’t afford.

You have the option to buy further shares – up to and including 100% ownership in most instances – if and when you choose to do so. The price of buying further shares (or ‘staircasing’) will be based on an independent valuation at the time that you purchase the further share.

 

What are the eligibility rules for Shared Ownership?

There are some general eligibility requirements that anyone wishing to buy a Shared Ownership home must meet. The general eligibility criteria for Shared Ownership is as follows:

  • You must be at least 18 years old.
  • Your annual household income must be less than £80,000.
  • Shared Ownership purchasers are often first time buyers but if you do already own another home, you must be in the process of selling it.
  • You should not be able to afford to buy a home suitable for your housing needs, outright, on the open market.
  • You must show you are not in mortgage or rent arrears.
  • You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home.
  • Priority will be given to those nominated by Broxbourne Borough Council.

Examples of top level of priority groups In Broxbourne

  • Current social housing tenants / serving military personnel
  • First Time Buyers who are currently living in the local authority area, who are eligible to go on housing list, and who have lived in area for more than 5 years
  • First Time Buyers who work in the area

The above are examples, and other priorities may apply depending on the development.

You should have savings or be able to easily access at least £4,000 to cover the costs of buying a home (this is a guideline figure – the actual amount may vary).

You will also need access to the deposit amount required. For Shared Ownership, this will usually be 5-10% of the equity share you are buying.

1

Select a property at Oaklands

Register your interest in one of our fantastic new properties

2

Eligibility and affordability

Your eligibility for shared ownership will be assessed

3

Meet with our sales team

Discuss the a ordability assessment and view the property or plans

4

Your offer

If you meet eligibility and a ordability criteria, B3 at Home will o er you a property and a reservation fee will be required

5

Apply for mortgage and instruct solicitor

With your mortgage principle in place it’s time to apply for the mortgage and instruct your solicitor

6

Time to move in!

Once your property build is complete we’ll meet you to hand over the keys

Register your interest today, call
020 7539 3745 for more information