Information booklet on Shared Ownership
What is Shared Ownership?
Shared Ownership is a government-backed scheme which makes home ownership available and more affordable to those who want to buy their own home, but cannot afford to buy outright.
Through this scheme you buy a share in the home you want, usually 50% of the market value, and you rent the other share from us at a subsidised rate. You can buy further shares in your home once you have lived in the property for 12 months and eventually own the property outright, when you can afford to do so. This is known as ‘staircasing’. There is, however, no obligation to buy further shares if you do not wish to.
If you have any queries on Shared Ownership and properties available please contact Judith Small by e-mail or phone 0121 766 1162.
We have several properties currently available for Shared Ownership located throughout Birmingham:
Brindley House – 1 and 2 bedroom apartments ranging from £146,500 to £164,000. 25% share from £36,625. For further details please contact Judith Small by e-mail jsmall@family-housing.co.uk or phone 0121 766 1162. Information on the scheme can also be found at www.mcdproperty.com/dev10009.asp.
Parklands Avenue - One 3 bedroom house remaining.
3 bedroom houses ranging from £185,000-£190,000 sold at 50% share. One 4 bedroom house at £215,000 being sold at 50% share. Seven 2 bedroom flats available from £102,500 to £139,000. 5% deposit up to 50% share. Some of these are shared ownership and some are equity share (this basically means that the purchaser purchases the property at 70% of the outright sales prices but do not pay rent on the remaining share. The housing association will always retain 30% of the property).
Showhome open from 10am-2.30pm every Sunday from 17th August 2008.
House of York, Charlotte Street – Two properties remaining.
Four 1 bedroom flats ranging from £135,000 to £150000 sold at 50% shared ownership.
Trinity Mews, Powke Lane, Rowley Regis
These are properties developed by Barratts They are five 3 bedroom properties from £173,950 sold at 50% share with carpets, curtains and light fittings included. Also 5% gifted deposit allowed to a 50% share.
Copperfields, Reddal Hill Road – Three properties remaining.
These are properties developed by Barratts. They are 3 bedroom properties at £160,000 being sold at 25% share with carpets, cartains and light fittings included. Also 5% gifted deposit allowed to a 50% share.
Hazelmere, Tividale - Both are now sold subject to contract.
Properties being developed by Barratts. They are two 3 bedroom homes being sold at £189,500 at 50% share. Also 5% gifted deposit allowed to a 50% share.
If you are interested in any of the above properties or any details on shared ownership please contact Waseem Butt on 0121 766 1108 or Judith Small on 0121 766 1162, e-mail sales@family-housing.co.uk.
Apply for Shared Ownership
If you would like to apply for any of the above Shared Ownership properties the first step is to complete our application form. On receiving this we will make certain checks to ensure you are eligible. We will then identify suitable properties and arrange for you to view. An informal interview will be arranged where we can explain Shared Ownership in detail and assess affordability. Once your application is approved and you are happy to go ahead we will continue to offer help and assistance during the sales process when required.
After moving in you will have dedicated staff at Family Housing who will continue to offer support and assistance on a variety of issues relating to your home and lease.
Who is eligible?
Shared Ownership is intended for people who cannot afford to buy a suitable home outright, for example:-
- First time buyers looking for their first home
- Those who need to move due to marriage or relationship breakdown
- Those affected by clearance due to redevelopment
- Job movers who are joining an area of higher property values than the one they have moved from
Can I buy with my partner or friends?
Yes, that’s not a problem. Up to four people can become joint owners. You will need to speak to your solicitor who will give you guidance.
How will I know if Family will sell me a home?
Once a suitable property is available you will meet with one of our representatives. They will take time to explain Shared Ownership and answer any questions you may have. If you wish to proceed, your application will be assessed and shortly after you will be contacted to let you know if you have been successful or not.
How do I arrange a mortgage?
We may be able to suggest local mortgage providers who are familiar with Shared Ownership or if you already save with a bank or building society it is best to speak with them. It is important to shop around and adviseable to seek independent advice. We are unable to give mortgage advice as we are not registered to do so.
What are the costs involved?
Before you decide to purchase you will need to budget for the costs involved. You will need money to pay your reservation fee, deposit, legal fees, valuation and possible stamp duty.
Reservation Fee
You will need to pay a reservation fee of £350. This will hold the property for you for a period of eight weeks whilst your solicitor deals with the purchase of the property. This money will be credited to your rent account when you complete on the property. However, if you decide not to go ahead, this money will not be refunded and will be used to offset our administration costs.
If you are arranging a mortgage to purchase your share you will usually require a deposit of 5% as most lenders will only lend up to 95% of the share you are buying.
Legal Fees
You will need a solicitor who will act for you to make sure all the legal requirements are taken care of and to make sure you understand what both you and Family are responsible for.
We recommend you obtain at least two quotes in writing detailing total charges including land registry searches and VAT before you instruct a solicitor to act on your behalf.
Stamp Duty
You may be required to pay stamp duty depending on the 100% value of the property.
The Lease
You will sign a lease because you will be renting part of your home. The lease will state the rent, management fee, building insurance and in some cases a service charge. It will detail what both you and Family are responsible for.
If you choose to exercise your right to staircase to own the property outright, the freehold will be transferred to you, in the majority of cases, at no extra cost.
The lease also provides a mortgage protection clause which makes it unnecessary to pay Mortgage Indemnity Insurance to your chosen mortgage lender, saving you a considerable sum of money.
Valuation Costs
Your chosen mortgage lender will require a valuation to be made on the property. There are various types of valuations providing different levels of information at different costs whioch you are responsible for. It is important to choose the valuation that best suits the age and condition of the property and not just the cheapest.
Moving In
Once you have moved in you will be responsible for the ongoing cost of ownership which you will need to budget for. These will include the mortgage, rent and household costs such as Council Tax, contents insurance and fuel bills.
Repair and Maintenance
You are responsible for repairing and maintaining your home. If you pay a service charge we will carry out works covered by this charge which will be clearly stated within your lease. You can make improvements or alterations to your home but you must first obtain written agreement from Family Housing and comply with local planning and building regulations. This allows the added value of these works to be discounted fro the purchase price, if you exercised your right to staircase to outright ownership.
Moving On
If you want to move on contact our customer service department or phone 0121 766 1100 and we will advise you in selling your share to someone else. Alternatively, you could buy the remaining share from us and sell the property outright on the open market. The price for buying shares is set by an Independent Valuer on the basis of the market value at that time.