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In New Build HomeBuy, people purchase their home as a leasehold property on shared ownership terms. The rent that you pay on the share that you don’t own is designed to be affordable.
Our scheme offers you the opportunity to buy a property in stages and rent the remainder from NCHA. It is possible to gradually purchase further shares in your home as they become affordable, and progress to full ownership.
Shared Ownership apartments at Hartington Street, Loughborough
You buy a share of the property, usually 25, 50 or 75% on a long-term lease. You will need to be able to raise a mortgage for this share or have enough savings to purchase the share outright. The lease states the monthly rent you have to pay and lays down the responsiblilities and duties for you and NCHA.
Prospective applicants are likely to be first-time buyers and may be registered on Local Authority or Housing Association waiting lists, or be existing Local Authority or Housing Association tenants. You must have a housing need, and when assessing need, consideration will be given to the following:
• your current accommodation and its suitability
• your ability to meet your housing need through other housing options
• Your ability to meet the outgoings of home ownership without hardship
Will I be able to get a mortgage?
Mortgages can be obtained from many banks and building societies, subject to your credit status and a valuation on each property. It is your responsibility to arrange the mortgage through a building society or bank of your own choice. Please note that under the terms of the Lease NCHA will need to approve your mortgage offer before the sale can proceed.
What other costs will I have to consider?
If you buy as shared ownership property you will have to meet the following costs:
1. A Reservation Fee
Once your application has been successful, NCHA will require a payment of £150 as a sign of your genuine interest. If the sale proceeds, this fee will be offset against the costs of the purchase. If you do not proceed with the purchase, NCHA reserves the right to retain 50% of the fee.
2. Exchange Deposit
At the exchange of legal contracts, NCHA will normally require a deposit from you of 5% of the purchase price.
Yeoman Street, Leicester
3. Building Society/Bank Costs
If you require a mortgage from a building society or bank, you will have to pay for their valuation of the property and the legal fees relating to the mortgage. Your building society or bank should be able to estimate this, and you may also be required to pay a mortgage indemnity premium if you are borrowing more than 80% of the purchase price.
4. Legal Fees
You will have to pay your Solicitor for advice on the purchase of the property, to make a Local Authority search, to approve the lease on your behalf, and after completion, to pay stamp duty land tax if applicable and to have the lease stamped and registered at the HM Land Registry.
Before instructing a solicitor, always obtain a detailed estimate of the legal costs.
What are the on-going costs?
Once you have moved into your property, your outgoings will be your monthly mortgage, rent and service charge payments. In addition you will have to pay your own gas, electricity, water and Council Tax bills.
Rent
Your monthly rent is paid for the part of the property owned by NCHA. Rent payments are due monthly in advance, payable by Direct Debit on the first day of the month.
Service Charge
Your service charge consists of:
1. a management charge which covers NCHA’s management and administration costs
2. a small charge to cover the cost of buildings insurance which is automatically provided by NCHA
3. a charge for any communal services that are provided by NCHA, e.g. cleaning of communal areas, gardening services
Your home may be repossessed if you do not keep up repayments on your mortgage.
Failure to maintain your rent & service charge payments to the Association may result in the loss of your home by forfeiture.
