Shared Ownership Properties
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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 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 don’t 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.
HOMEBUY
On 1st April 2006 the Government launched two new programmes whereby all Low Cost Home Ownership schemes will now be called HomeBuy. In order to be considered for schemes on offer all applicants are now also required to register with Catalyst Housing, the official Homebuy Agents for Surrey.
The Low Cost Home Ownership schemes currently on offer are:
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New Build Homebuy, which is a part buy/part rent scheme that replaces traditional Shared Ownership. Please note that all Shared ownership resales funded through the housing corporation will also fall under the umbrella term, “New Build Homebuy”
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Rent To Homebuy, which allows applicants currently unable to afford to purchase to rent at a below market rent of up to 80% of the local rate for up to a 5 years on an assured shorthold tenancy. Tenants are then able to purchase at a later date when their circumstances improve.
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Homebuy Direct, where homes are provided on selected schemes for outright sale. The purchaser is assissted with an equity loan of between 15% and 30% co funded by the HCA and the developer. This is secured as a 2nd charge on the property.
In order to be eligible for these schemes, you must complete an application form, available online at www.catalysthomebuy.co.uk and submit it electronically. All applicants may be subject to confirmation of employment status and eligibility criteria.
You will also need to remain on Guildford Borough Council’s register and will need to return your annual declaration. 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.
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.
If you require more information or have an enquiry regarding any of the schemes please call Jen Olissoff (01483 444519) at Guildford Borough Council.