HomeBuy (previously Shared Ownership)
This page will give you general information regarding the HomeBuy schemes. Use the links to the Housing Association websites to find out about specific schemes in the area of your choice.
What is HomeBuy?
HomeBuy is a range of schemes to help people who would not normally be able to buy a home to do so. HomeBuy enables you to part buy, part rent a new or older home and pay a subsidised rent on the part owned by the housing association. At a later date, if you want to you can buy the rest of your home outright. The more of your home you own the less rent you pay and if you buy your home outright then you will not need to pay any rent at all.
Schemes available are:
- New Build HomeBuy
- MyChoiceHomeBuy
- Ownhome
- New Build Shared Equity
- First Time Buyers Initiative
- Re-sales
Do I qualify for HomeBuy?
To qualify for HomeBuy you must be in permanent employment and be in a position to raise a mortgage for the part you are buying. You must be earning at least £18,000 - £60,000. However, you may not qualify if the association feel that you earn sufficient to enable you to purchase a home outright without the assistance of a shared ownership scheme.
There are some initial costs involved in buying a shared ownership property just as there are when buying on the open market. Therefore you should have at least £3,500 in savings before applying.
You must have a good credit history with no record of County Court Judgements, loan defaults or bankruptcy.
The Housing Association financially appraise and credit check all applicants for shared ownership.
Most first time buyers can take advantage of shared ownership if they cannot afford to buy a home on the open market. Priority among applicants is given to:
- Social tenants – existing council and housing association tenants
- People register as priority need on the Dartford Councils housing register
- First time buyers
- Public sector key workers
Even if you have owned a home before, you may be able to buy through shared ownership if:
- You owned a home with a partner and that relationship broke down
- You need to move because of job relocation; or
- You are already a shared owner who needs to move, and you fulfil all our other criteria.
How do I apply for HomeBuy?
You should apply directly to the Housing Associations that operate in this area to apply for any of the HomeBuy schemes.
New Build HomeBuy
New homes are built by housing associations for part buy/part rent (shared ownership) through new build HomeBuy. Homes are usually sold to applicants with a 50% share in the property but other shares between 25% and 75% may be available. An affordable rent is paid to the housing association on the remaining share.
For example:
If you purchase 50% of your home you will pay rent on the other 50% to the housing association in addition to the mortgage you pay to your lender. New homes are usually allocated to local people from the areas i.e. people who live and/or work locally or who have local family connections.
Some new homes are reserved specifically for key workers.
MyChoiceHomeBuy
MyChoiceHomeBuy is a government funded low cost home ownership programme aimed at helping social tenants, key workers and other first time buyers needing a helping hand to buy a suitable home were they live or work.
It is a flexible equity loan scheme for households earning between £20,000 to £60,000 per year to buy their own home on the open market and will be for between 50% to 75% of the property share. The loan given will be secured as a second charge on the property and you will own your home. The loan is repaid when your home is sold along with any interest occurred on the amount.
How does MyChoiceHomeBuy work?
You will need to raise a mortgage through an independent adviser, band or building society. When the property is approved by the housing association you pay a percentage of the purchase price with the mortgage and any savings or deposit you may heave. The remainder of the purchase price will be paid by the housing association between 15% and 50% as an equity loan. A low monthly interest will be paid on the loan and the loan is repaid if you sell your home.
Ownhome
Ownhome is offered by Places for People in partnership with Cooperative Financial Services. It offers shared equity loans of between 20% to 40% of the purchase price to be used in conjunction with mortgages from the Co-operative Bank in the first instance.
New Build Shared Equity
You can purchase a newly built home that has been developed for private sale on the open market, either off-plan or from existing available new properties, with a shared equity loan from either MyChoiceHomeBuy or Ownhome (described above). The amount you purchase depends on how much you can afford to buy but starts from a minimum of 50% of the property.
First Time Buyers’ Initiative
This is offered by private developers on selected new homes developments. You will need to buy a minimum of 50% of the property, or more if you can afford to.
Re-sales
If any existing shared owners wish to sell their homes, The Housing Association arrange for the sale to another eligible buyer at a competitive rate.
If your application is accepted The Housing association will send you individual property details for the areas you are interested in, depending on the size of the properties available and the property size considered appropriate to your household's needs and affordability levels. To purchase a Resale property, you do not necessarily have to be living in the property's local authority area when you apply.
Housing Associations operating HomeBuy in the Borough of Dartford
Moat Housing Association
96 High Street
Sevenoaks
Kent TN13 1LP
07002 662846
www.moat.co.uk
Hyde Housing
181 Lewisham High Street
Lewisham
London SE13 6AA
0208 297 1500
www.hyde-housing.co.uk
www.inplace.co.uk
Tower Homes
70 Court Road
Eltham
London SE9 5NP
0800 056 3601
www.towerhomes.org.uk
