Stamp Duty Land Tax Reprieve - See HERE For Details (3rd September 2008)
Information regarding Shared Ownership schemes... (updated 27th May 2008)
Shared Ownership schemes are for those households who wish to get onto the property ladder & purchase a home.
Primarily aimed at certain classes, within specific areas - there are possibilities that the schemes will develop and be
available throughout the UK.
Briefly, it is for those who cannot afford to secure finance to fund the full purchase price of a property.
Sort of - like buying shares in the place that you live, or wish to live in.
Priority is currently given to select individuals or households that meet a Government specified criteria.
Population:
The UK is currently home to over 60.25 million people.
This figure is expected to increase by a further 266,000 inhabitants per year - up to 2031.
Households:
Current figures suggest that there are 23 million households in the UK, with an estimated 19.3 million who wish to own their own home. However, fewer than 14 million currently have (or have previously had) a mortgage on their property.
Due to the way that the property market has spiralled, this has placed the opportunity out-of-reach for an estimated 5.5 million households in the UK.
The Government has introduced various schemes to try and help redress this problem. But, (there's always a "but") The facility is mostly aimed at what they call "key workers" within designated areas..!!
I agree that the Emergency Services personnel (and others) should benefit from this scheme, but I also know that other employers have key personnel too..!!
Current Schemes:
Social HomeBuy...
Provides opportunities for tenants who do not have the Right-To-Buy or Acquire (or who cannot afford to) - buy a share in their rented property.
More...
New Build HomeBuy...
Purchasers may be expected to buy a 50% share of a newly-built home, with a housing provider holding the remainder of the equity in the property. The idea being that the purchaser increases their shareholding in the property - if and when they can afford too.
More...
1, 2 & 3 Bed Apartments & Houses in Bromsgrove (Acorn Road) Available in Spring 2008.
50% Equity Share Currently Available in Redditch
1 & 2 Bed New Apartments (Gloucester Road)
2 Bed New Apartments (Evesham Road)
2 & 3 Bed New Houses (Sillins Avenue)
Open Market HomeBuy...
This is a Government backed scheme which helps people who cannot afford to buy on the open market without assistance. This scheme provides access to additional money called “Equity Loans” which run alongside your conventional mortgage.
How Does Open Market Homebuy Work..?
The Government, via a Homebuy Agent, operates the Open Market Homebuy scheme. In the case of Redditch and Worcestershire, this is Home2Own - who will help you to purchase a property which is new or old or which can be anywhere in the UK off the open market.
Purchasers may have to source the funds to buy a 75 per cent share of a home. Currently, four providers are geared-up to provide the finance (subject to terms and conditions). These are Advantage, Halifax Intermediaries, Nationwide and Yorkshire B.Soc, with the remaining 25 per cent split between the Lender (12.5%) and the Government (12.5&) in the form of an equity loan.
More...
These options are primarily for Key Workers, Social Tenants and priority First Time Buyers - located within the East, London and the South East. Terms and Condition will apply to all property ladder schemes..!!
Discounted Sale Properties
Selected Sites Only
As part of the Council’s Housing Strategy, Redditch Borough Council will negotiate through Planning Policy with developers on larger sites for “Affordable Housing Provision”.
This “Affordable Housing Provision” includes accommodation for rent and shared ownership via a Housing Association but may also include a proportion of units made available by the private developer for “Discounted Sale”.
“Discounted Sale” properties are properties negotiated by Planning Policy which must be provided by the developer at a discounted price, which is usually between 10% and 25% from the full market price.
The sale and re-sales of “Discounted Sale” properties are strictly controlled by a legal covenant, agreed with the private developer as part of the provision of affordable housing via Planning Policy.
CONDITIONS OF SALE
Often, the conditions of sale of the “Discounted Sale” properties restrict sale of the units to people who:
Are registered on the Redditch Borough Council Housing Register and have an identified need and who have expressed an interest in properties for Shared Ownership and Low Cost Home Ownership”.
Are buying the property as their only and principle home and not as an investment.
Are in employment and can afford the costs involved with buying and maintaining a home.
Cannot afford property of a similar or higher value available on the open market.
WHAT HAPPENS WHEN I BUY A “DISCOUNTED SALE” PROPERTY?
The main distinction with “Discounted Sale” properties, compared to Rented and Shared Ownership properties is that they are not provided by a Housing Association.
Redditch Borough Council do not have any financial or other interest in the properties neither does a Housing Association so the rights of the mortgagee and lenders are protected, as with an open market property.
“Discounted Sale” properties are developed and sold by the private developer. Redditch Borough Council will be notified by the developer of the units availability and then will write to you with details of the properties available, prices and ways in which you can find out more information or to view properties.
As “Discounted Sale” properties are sold on the open market for owner occupation, you may need to obtain a mortgage to assist your purchase of the property. Often, the housing developers will refer you to Financial Advisers to help find the best mortgage deal for your circumstances. Alternatively, under the Financial Services Act 1988, you are free to source your own mortgage from local lenders.
Please note that If you have some savings available, you may be able to place a deposit on the property to make your monthly repayment cheaper. If not, many lenders do offer mortgages on 100% of the property.
The “Discount” which has been negotiated by Redditch Borough Council on the “Discounted Sale” properties will apply at the first and all subsequent sales in perpetuity, as a planning condition on the wider development site.
For further details on the above, please select the appropriate link.
If you want to find out more or apply for one of the property ladder scheme's - please contact the Council's Housing Options Team via the email address of: housing.options@redditchbc.gov.uk to arrange an appointment.
You may even Download the pdf files as listed below:
About The Open Market Home Buy Scheme (185.44 KB)
Discounted Sale Home Ownership in Redditch (264.98 KB)
About The New Build Home Buy Scheme (142.90 KB)
Useful Contacts:
Redditch Co-op Homes 01527 591170 or via e-mail: rch@bchs.org.uk
Festival Housing Group 01684 579437 or via e-mail: KLaydon@festivalhousing.org
Rooftop Housing Group 01386 420829 or via e-mail: grace.seal@roofopgroup.org
The Housing Corporation 0845 230 7000 or visit: www.housingcorp.gov.uk
NEWS:
Currently, negotiations are taking place between lenders, financial service providers, investors and a new & what we
believe to be unique - private scheme provider, quite simply called "502100."
This scheme will be aimed at the other 4.5 million households, who too - wish that someone would help them..!!
The aim will be to supply this "majority" group with the help and assistance required in determining whether they can
also get a foot (leg-up) onto the Property Ladder..!!
Why 502100..?
Quite simply - it stands for 50 to 100 per cent (50 2 100) and will be located here: www.502100.co.uk
We will keep you posted on further developments, but please - be patient, as these facilities don't just happen overnight..!!
If this is something that you may be interested in, as either: Investor, Financial SVC provider, Lender or even as an
Aspiring HomeOwner - then see www.502100.co.uk for contact details.
