Many people even in comparatively well-paid employment find that they can't afford to buy a home in Guildford. Although there are different ways of getting a first step on the property ladder the most usual is Help to Buy/Shared Ownership.
The scheme enables you to buy part of a property, with a housing association or the local authority owning the remaining share. Rent is paid for the share that you don't own.
Help to Buy (previously known as HomeBuy) is a government initiative that provides a 'one-stop shop' service to assist eligible individuals and families purchase affordable housing. The initiative provides information on a range of schemes that are available to people who may not be able to buy a home on the open market.
If you can't afford to buy your first home, Help to Buy can assist. You may be a first-time buyer who has been priced out of where you want to live, or be unable to raise the necessary deposit to buy a property outright. Whatever the reason – if you need help to buy your first home, this initiative can give you the chance to get onto the property ladder.
The government has appointed a number of agents across England to administer Help to Buy. These agents are professional not-for-profit organisations that specialise in providing affordable homeownership opportunities. Bedfordshire Pilgrims Housing Association (BPHA) is the appointed Help to Buy Agent for Surrey.
By registering with BPHA, individuals are assessed to identify the schemes they are eligible for. They also work with a number of organisations including housing associations, private developers and local authorities to ensure customers are kept informed about all the opportunities available to them.
Shared ownership is a part-buy/part-rent scheme that enables the purchaser to buy a percentage of a newly built or resale property, usually from a housing association, and pay rent on the remaining percentage. In Guildford any shared ownership properties that become available are usually advertised through Guildford HomeChoice and any applicant registered for Low Cost Home Ownership can bid for these properties. If the property is provided by a housing association applicants will also have to be registered with BPHA.
Help to Buy Shared ownership - New build
Under this scheme, you need to purchase the maximum share that you can afford, which is normally a share of between 25% to 75% of the full market value. The combined monthly cost of your rent and your mortgage will usually be less than buying the property outright.
After one year of ownership, you are able to buy additional shares in increments of 10%, until you own 100% of your home. This process is called 'Staircasing'.
Shared ownership is especially appealing if you are unable to:
Raise a sufficient deposit to allow a mortgage to be approved.
Obtain an adequate mortgage approval to purchase a property outright even if you have a healthy deposit.
Shared ownership - Resales
Resales are shared ownership homes that become available when existing 'shared owners' wish to sell their stake in their property. This normally happens when people move up the property ladder.
The share that can be purchased, and the rent payable, will be different for each property and will depend on the percentage initially purchased and the amount of staircasing that has taken place.