Low Cost Home Ownership
Provision and management of a scheme whereby eligible local
citizens can purchase property at a reduced cost or participate in
shared ownership schemes.
Low Cost Home Ownership Schemes
There are a limited number of homes available in the Borough of
Scarborough available for shared ownership and these are manage by
a registered social landlord.
With a shared ownership house, you would own part of the
property and pay a mortgage and rent the rest of the property from
a housing association.
When existing owners wish to move on from shared ownership
properties, they will be placed in the hands of an estate agent, so
if you are interested in a shared ownership property - register
your details with local estate agents.
HomeBuy is a Government scheme to
help people get a foot on the property ladder.
New Build HomeBuy (formerly known as Shared Ownership)
Homes are sold as leasehold properties on a long lease and on
shared ownership terms - they can be flats or houses. The
minimum share that can be purchased is 25%, and 75% is the usual
maximum. A purchaser will need to be able to raise a mortgage
for the share they want to purchase, and will pay rent on the share
they do not own. Rents are calculated to be affordable.
The purchaser can buy additional shares until they own
100%. This is known as 'staircasing'. When the
purchaser wants to sell the property they can either sell the share
they own to another household nominated by their landlord or the
lease may allow them to staircase to 100% and sell it in the normal
fashion. (NB normally on rural exception sites, purchasers
can only staircase to a maximum of 80%).
However, landlords may want to buy the property back in order to
offer it to other households who want to enjoy low-cost home
ownership. They will tell you if they want to do this when
you tell them that you want to sell. The property is sold at
market value and you will benefit from any equity which has built
up on the share that you own.
Open Market HomeBuy
Open Market HomeBuy is a low-cost government-backed
home-ownership programme that aims to help people to secure 100%
funding of the value of their first home. It is a flexible
equity loan scheme designed to help households earning up to a
maximum household income of £60,000 a year to buy their own homes
on the open market.
There are two Open Market HomeBuy products, which are designed
specifically to help local authority and housing association
tenants, key workers and others who are not able to afford to buy a
suitable home in an area where they live or work without
assistance. Both products are available throughout England
and have been designed to suit a wide range of personal
circumstances. The purchaser finds a property that they want
to buy on the open market, but buy part of the equity in
partnership with another.
- MyChoiceHomeBuy - is funded by the
government and is offered by eight housing associations, each of
which is an equity loan provider in its own right.
- OwnHome - is provided by a partnership between
Places for People and the Co-operative Bank and is part-funded by
the government. Places for People is an equity loan provider
in its own right.
For further information regarding these schemes, please see the
links provided below.
Links to External Websites