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Ownership
- WHO CAN APPLY?
- WHAT KIND OF PROPERTIES CAN I BUY?
- WHAT ARE THE INITIAL COSTS INVOLVED?
- WHAT ARE THE COSTS ONCE I MOVE IN?
- WHAT IS THE PROCESS FOR APPLYING FOR A SHARED OWNERSHIP PEOPERTY?
- WHAT DO I DO NOW?
Anyone whose earnings level is insufficient to raise a mortgage to purchase outright or who has sufficient cash to purchase a share can apply. In addition a purchaser must show a housing need, although the desire for home ownership is recognised, with priority given to:
- Existing public sector workers.
- Those on a waiting list of a registered social landlord or local authority.
- People moving to an area with higher housing costs in order to take up employment.
- Others in housing need who are unable to afford the costs of full ownership.
- People forced to sell, e.g. relationship breakdown or moving from areas of regeneration.
All applicants will be subject to a financial assessment and the cost of your housing should be no more than 40% of your net monthly income. To get this figure we take a base figure for your mortgage and combine it with the rent payment, creating a threshold figure. Your monthly income would have to be over this threshold figure with any loans, hire purchase or credit card payments taken off. Shared Ownership properties must not be sublet.
WHAT KIND OF PROPERTIES CAN I BUYThe type of property we develop under this scheme can vary from new two and three bedroom houses, to two bedroom apartments for couples and singles and schemes especially for the over 55’s including two bedroom bungalows. We also have a range of existing “second hand” homes that come up for resale on an ad-hoc basis.
Mortgages are available from many Banks or Building Societies and you should seek independent mortgage advice once you have been accepted by Three Rivers. You will be responsible for your own solicitors fees so it is worthwhile shopping around before instructing someone to act on your behalf.
If you wish to purchase a home on the open market with assistance then please contact Nomad Homes who will be able to give you information about the Open Market HomeBuy Scheme.
WHAT ARE THE INITIAL COSTS INVOLVEDYou should budget for the following:
- Solicitors Fees Approx £500.00 – this includes fees for their time and also payments to third parties for local authority searches.
- Survey Fees Approx £200.00 - £300.00 – These are payable at the start to your mortgage company so a surveyor can inspect the property and confirm that its value is correct and there are no major problems with the property.
- Mortgage Arrangement Fees Approx £300.00 but could be more
- Stamp Duty may be payable, this is at the moment 1% of the Full Market Value, or 1% of the share value purchased – if you have any queries about stamp duty, please refer to your solicitor. This is paid usually on completion of your purchase.
- Deposit – This can vary from nothing to 10% but many lenders will ask for at least 5% of the share value of the property. An independent mortgage advisor will be able to give you an idea of what is acceptable.
- Moving Fees – don’t forget the cost of removals, van hire and insurance for your possessions when you move.
WHAT ARE THE COSTS ONCE I MOVE IN
Regardless of the share you own you are responsible for paying the mortgage, the rent (in advance) and all household expenses including utility bills and council tax.
You are a homeowner and, if you live in a house, are responsible for the repair and maintenance of the property and its installations and appliances. You are also responsible for internal and external redecoration of the property.
In general you should consider the continuing cost of maintaining and replacing the following:
- Central heating and boilers
- Roof repairs
- Window repairs and replacement
- Electrical repair/rewiring
- General wear and tear
If you live in an apartment or flat you will be responsible for the maintenance of the inside of the property but will also have to pay a share of the cost of maintaining communal areas – this is called a service charge and will be payable to either a management company, if Three Rivers don’t own the building in which you live, or directly to us if we own the building.
The service charge will cover such items as cleaning communal landings and repair and maintenance of lifts whilst you will also be required to make contributions to major repairs such as roof repairs. When Three Rivers make you an offer we will give you an estimate for the first years service charge however this may change if the actual cost of maintaining the building is different to that estimated by Three Rivers or a management company.
Buildings insurance is paid by Three Rivers however you may wish to take out contents insurance and life assurance which would pay off the mortgage in the event of serious illness or death.
If you want to buy further shares, sell your share or make major improvements to your home then you should Click Here for existing shared owners for further details.
WHAT IS THE PROCESS FOR APPLYING FOR A SHARED OWNERSHIP PROPERTY- Complete a Nomad Homes application form. You can do this online at www.nomad-homes.co.uk or contact Pauline Neave on 0191 3753729 or pauline.neave@threerivershousing.co.uk to have a form posted out to you or you could call into our offices for a copy.
- Nomad Homes will initially assess your application form and send it on to Three Rivers for further assessment
- Once the application has been received we will assess this against the shared ownership criteria for the scheme applied for, including affordability criteria, and a score of housing need will be produced. Income is calculated as:
- Net monthly income + benefits – credit card/HP and loan payments = Net Monthly income
- If successful, you will be invited to the office for an interview
- All unsuccessful applicants will be notified in writing, along with applicants on the waiting list for a particular property
- After the interview a financial assessment will be carried out and successful applicants will then have the opportunity to view the property/properties
- Following this a formal offer is made and you will be asked to reserve the property
- One reservation form must be returned to Three Rivers within one week of our offer being made with a cheque for £100. This will then reserve that particular property and no-one else will be given the opportunity to view
- You will then instruct your mortgage lender and solicitor
- It will usually take about two weeks for a valuation to be done by your mortgage lender
- We will need to see and approve your mortgage offer and completion should normally take place about two to three weeks following our approval
- All in all, the process should take no more than six to eight weeks from start to finish
WHAT DO I DO NOW
If, having read the information provided, you wish to be considered for a Shared Ownership home, you should complete an application form through our HomeBuy agents, Nomad Homes. You can download or complete an online application form at Nomad Homes. This will enable the Association to assess your eligibility and priority for a Shared Ownership home.
To request an application pack or for further information please contact Pauline Neave on 0191 375 3729 or email Pauline Neave. Our complete allocations and selection policy is available by clicking here.
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