Shared Ownership Properties
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Many people even in comparatively well-paid employment find that they cant 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 Shared Ownership.
The shared ownership 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 dont own.
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Most years the Council have approaching 100 shared ownership properties available for purchase, from 1-bedroom flats to 3- bedroom houses. The minimum amount you can purchase varies between properties but it is usually between 30% and 50%. Our shared ownership property guide gives the location of shared ownership properties in the borough click Shared Ownership Properties to download.
The initial costs are broadly the same as if you were purchasing on the open market. You will therefore need to employ a solicitor, commission a survey, pay stamp duty, and pay mortgage fees. It is also advisable to have enough savings for a mortgage deposit of 10% of the amount that you will be borrowing. It is suggested that you will need a minimum of £10000 - £15000 to meet these costs.
Most people will need to borrow money in the form of a mortgage to fund their part-purchase of a property. Mortgage lenders will be able to give you advice on the different types of mortgages that are available and the interest rates that will be fixed to the repayments. Click to read more about Mortgages.
What is HomeBuy?
HomeBuy is a Government driven initiative that helps eligible individuals and families find homes that meet their current needs. The Government has appointed a number of HomeBuy Agents throughout England to help those who are seeking to live in specific areas.
For many people, this program will provide the best chance of owning a home in the area in which they want to live and work. The initiative also offers rental options for those who are eligible.
What is a Homebuy Agent and who are Catalyst Housing Group?
Catalyst Housing Group is the Government appointed HomeBuy Agent for Surrey. Catalyst Housing Group provides a "one-stop-shop" service for home ownership and rental opportunities that exist in these areas. By registering with Catalyst HomeBuy, individuals are assessed to identify the schemes they are eligible for. Catalyst, as a HomeBuy Agent, work with a number of organisations such as other housing associations, private developers, estate agents and local authorities to ensure customers are kept informed about all the opportunities available to them.
Catalyst also organises regular HomeBuy shows. At these events, independent financial advisers and solicitors provide affordability assessments and advice free of charge. The HomeBuy show is a great opportunity to find out more information and have queries answered face to face. Entry to these shows is free so visit the website for the latest dates.
There are a number of different scheme types that are offered under the HomeBuy initiative. Depending on your individual circumstances you may find that one or more of these are available to you.
HomeBuy Direct
A shared-equity scheme designed to help first time buyers have 100% ownership of their property. The purchaser will be the legal owner with full title to the home and can sell it on the open market without restriction.
The buyer buys a new home, on a designated HomeBuy Direct development, with assistance from the Government and the house builder in the form of two equal equity loans.
The equity Loans would be up to 30% of the purchase price leaving the applicant to raise 70% by way of a mortgage plus a deposit, if available.
The equity loans are interest free for the first five years. After that, there is a fee of 1.75%, rising annually by the Retail Price Index (RPI) plus 1%.
NewBuild HomeBuy
This scheme offers brand new high quality homes available on a ‘Part-buy/Part-rent basis (also known as Shared Ownership). Under this initiative, eligible individuals are able to become home owners by buying a share of a newly built property (from as low as 25%) and pay a subsidised rent on the portion they dont own.
Individuals then have the opportunity to increase their share of the property as their financial situation allows by ‘staircasing.
Catalyst Housing Group can provide you with details of the developments in your area that offer ‘part-buy/part-rent opportunities.
From time to time ‘part-buy/part-rent properties will become available as a result of existing owners moving further up the property ladder. These are known as ‘Re-sale properties.
For NewBuild Homebuy in the Guildford Borough area you will also need to remain on Guildford Borough Councils register.
Intermediate Rent
This option offers new build properties at 80% (or less) of current market rents and is available through a number of Housing Associations. In most cases the initial period is for six months and time frames are reviewed regularly. Under some circumstances, at a later date, there is option to buy a share of the property through another HomeBuy scheme.
This option is also available through some Key Worker organisations such as NHS Trusts who aim to help qualifying or newly qualified staff to settle into their jobs and local community.
Rent to HomeBuy
Under this scheme, eligible individuals are able to rent a newly built home provided by a Housing Association at a rate that is normally 80% of the current market rate.
Depending on the development the individual has the option to convert the rental agreement into shared ownership (part-buy/part-rent) after a period of 3 years of 5 years. The rental period is designed to provide an opportunity to save for a deposit to put towards buying a share in their home.
Homebuy enables you to be considered for properties becoming available across Surrey but if you are interested in being considered for properties outside the Guildford Borough you may also have to register with the local authority responsible for the area in which you want to live.
Eligibility Considerations
Eligibility rules have been amended by the Homes and Communities Agency (HCA) for existing homeowners.
As a result all current home owners who wish to be considered for HomeBuy options are now required to have a 'Priority Housing Need' approved by their current Local Authority BEFORE they register with the local HomeBuy Agent for the area they wish to live in.
The priority housing need will be assessed in accordance with the Housing Act 1996.
In addition, to be eligible for HomeBuy schemes, candidates must fit into one of the following criteria and must NOT have a household income in excess of £60,000 per annum.
Once you have met the initial eligibility criteria, the Government has prioritised the following groups for assistance:
- First time buyers - First time buyer groups who cannot otherwise afford to buy a home on the open market.
- Key workers - As defined by the Home and Communities Agency (HCA). Likely to include those working in the public sector in health, education or community safety - (such as teachers, nurses, social workers and police officers) in areas where high house prices are affecting recruitment and retention.
- Social tenants and those on the housing register - Tenants of councils and housing associations and those who are on the Local Authority Housing Register. Key workers and Social tenants who wish to buy a property through HomeBuy are given top priority.
- Those who have had a major change in circumstances - Current or previous home owners who are looking for a new property as a result of a major change in their personal circumstances e.g. divorce/separation, victim of domestic violence. Overcrowding due to a growing family etc. Subject to approval.
Applicants who choose not to register with the Homebuy agent will only be considered for schemes that have been funded through Guildford Borough Councils own initiatives. All Low Cost Home Ownership properties will still be advertised through guildfordhomechoice and the information given for each property will include details of whether applicants need to be registered with the Homebuy agent in order to be eligible.
What happens next?
Once on Catalyst Housing Groups Homebuy Register, you will: -
- Receive a letter confirming your eligibility and outlining the level of assistance you are likely to receive.
- Be kept up-to-date with the latest Government initiatives.
- Receive marketing details of any suitable new affordable housing schemes that are being developed in the District.
- Receive details of re-sales of existing shared ownership properties.
- Have access to any other HomeBuy options promoted by Catalyst and advertised through the HomeBuy website, subject to any eligibility criteria.
This information is provided by the Catalyst Housing Group and is subject to change so please visit the website – www.catalysthomebuy.co.uk for the latest details as this is updated regularly.
If you require more information or have an enquiry regarding any of the schemes please call the Housing Advice Centre (01483 444244).
