Shared Ownership Checklist

Transcription

1 Shared Ownership Checklist Sign and return Working together to make a difference

2 Shared Ownership Checklist The following important information is about the shared ownership scheme with Coast & Country Housing Association. It is a check list to ensure you have been made fully aware of the agreement you may be entering in to. Please tick each to show you have understood: You will buy your home on a lease which will normally be 99 years for new homes and this will be on shared ownership terms. As a shared owner, you are an owner-occupier, not a tenant. You usually pay a mortgage on the part you own plus a subsidised affordable rent on the remaining share you don t own. Your rent is collected monthly by direct debit. Your rent is reviewed annually and increases on the 1st April each year. Should you experience problems in paying your rent you should notify us immediately. Late or non-payment of rent and/or service charges is a serious matter. You can purchase between 25 and 75 per cent of your home at the outset. Most leases will state that after one year, you may purchase more shares in your home if you wish, until you eventually own it outright (in some rural areas full ownership is restricted to 80 per cent). This process is called staircasing. You are under no obligation to buy more shares; it s up to you to decide what s right for you. You can buy shares in multiples of 10 per cent. Just like any other home owner, you may sell your home at any time. Service charges apply to most properties. A full breakdown is available on request and will also be supplied to your legal representative on issue of the lease. Buildings insurance: All shared ownership properties are leasehold and require the association to insure them. These charges are payable by the purchaser and as with most policies there is an excess payable. You are responsible for insuring the contents of your home. If you fall behind with your rent or service charge it is very important you get in touch with us as soon as possible to discuss the options available. Your brand new home will benefit from a defects guarantee. This will be for a defined period, typically for the first 12 months after it was built, but this can vary. However, a minimum of 3-months is offered to all purchasers of new homes. It is your responsibility to repair and maintain your home after the initial defects period. If you own a house, you are responsible for all repairs to your home. If you live in an apartment, you are responsible for all repairs inside your home. Day-to-day repairs, maintenance and decoration to the outside of the apartments and any shared areas are paid for through your service charge. If you wish to make an alteration or improvement to your property you must contact us and ask for our written permission, prior to commencement of work. Subletting is not normally permitted, although we may give permission in exceptional circumstances. Following your financial telephone interview, we will hopefully be able to write to you formally offering you a property and the share you can purchase. We will also give you a date by which we want you to exchange contracts (this makes your intention to buy a home through Coast & Country a legally binding agreement). You have 7 days to accept this offer by signing and returning a form which confirms the name of the mortgage lender and legal representative you have chosen and the full names of all applicants purchasing the property which are needed for legal reasons. When you return this form, you will need to send a 300 deposit (known as the reservation fee ). This will be deducted from the purchase price on completion. Please note, should the sale not go ahead for whatever reason, including if you change your mind or we withdraw our offer of a home because you have given false or misleading information, we will retain this deposit to meet our legal and administrative costs. Document 5 Checklist

3 If you are not successful we will write and explain why. We reserve the right to withdraw any offer we may have made if you do not exchange contracts and complete the sale within the terms of the offer letter or if information provided is found to be misleading or incorrect. In the event of a dispute, the matter can be referred through our complaints procedure (available on request). Once you have accepted your offer, you need to formally instruct your legal representative who will be acting on your behalf in the purchase. It is important you choose a legal representative who is experienced in part-buy/ part-rent schemes to avoid unnecessary delays. We also recommend you obtain several quotes of the likely costs before you appoint a representative. You will also need to formally arrange for a mortgage from a recognised lender who is FSA registered. We are not qualified to offer or provide financial advice and strongly advise you contact an independent mortgage advisor as we will then be confident you will have received information from advisors who are familiar with this type of scheme. It is a good idea to use an independent mortgage advisor as they are not tied to the mortgage products of a particular bank, building society or specialist mortgage company. They will explain the advantages and disadvantages (early repayment fees, tied insurance policies, etc.) of the various mortgage products available and will recommend a mortgage that suits you. Most IFAs will charge a fee for this service. However, we can provide details of one whom is free of charge and understands the schemes we offer. We recommend until you have been advised of a firm completion date you do not give notice on your existing accommodation. Coast & Country Housing Association can accept no liability if you choose to do so. When homes are not build complete at the time of initial purchase, we can only provide an estimate of approximate completion date and a great deal is out of our control at this stage. None of our team will be able to offer you a guaranteed date. The information you have provided may be used for statistical purposes in accordance with the Data Protection Act I confirm the above has been explained to me and I understand all the information given about how the scheme works. I certify I am not employed by any subsidiary of Coast & Country Housing Association, and have not been employed by any subsidiary of Coast & Country in the last twelve months and I am not related to an employee or ex-employee or Board/Committee Member of any subsidiary of Coast & Country. I understand a false declaration which leads to a breach of Schedule 1 of the Housing Act 1996 may lead to any purchase or sale contract being declared null and void and I may be liable for contingent costs. Signed (Applicant): It is your own choice if you wish to accept mortgage advice from the financial advisor whom we refer you to. We accept no liability for the performance or actions of any of these mortgage advisors. Print Name: When you have chosen your mortgage you will need to fill in a mortgage application form and we will need to see a copy of this within 5 working days of accepting your offer of a property. Date: We would expect the exchange of contracts will take place within 8 weeks of reserving a property. At this point your legal representative will request a deposit to exchange contracts of 500. This means a total of 800 would have been paid in deposits prior to exchange of contracts. Interviewed By: Document 5 Checklist

4 Coast & Country 14 Ennis Square Dormanstown Redcar TS10 5JR Tel Fax Coast & Country Housing is the largest provider of affordable homes in Redcar & Cleveland and one of the leading housing companies in the North East of England. Coast & Country Housing Ltd is a Community Benefit Society registered under the Co-operative and Community Benefit Societies Act Registered Office: 14 Ennis Square, Dormanstown, Redcar TS10 5JR. Registered with the Financial Conduct Authority No Vat Registration No

5 Shared Ownership Checklist Yours to keep Working together to make a difference

6 Shared Ownership Checklist The following important information is about the shared ownership scheme with Coast & Country Housing Association. It is a check list to ensure you have been made fully aware of the agreement you may be entering in to. Please tick each to show you have understood: You will buy your home on a lease which will normally be 99 years for new homes and this will be on shared ownership terms. As a shared owner, you are an owner-occupier, not a tenant. You usually pay a mortgage on the part you own plus a subsidised affordable rent on the remaining share you don t own. Your rent is collected monthly by direct debit. Your rent is reviewed annually and increases on the 1st April each year. Should you experience problems in paying your rent you should notify us immediately. Late or non-payment of rent and/or service charges is a serious matter. You can purchase between 25 and 75 per cent of your home at the outset. Most leases will state that after one year, you may purchase more shares in your home if you wish, until you eventually own it outright (in some rural areas full ownership is restricted to 80 per cent). This process is called staircasing. You are under no obligation to buy more shares; it s up to you to decide what s right for you. You can buy shares in multiples of 10 per cent. Just like any other home owner, you may sell your home at any time. Service charges apply to most properties. A full breakdown is available on request and will also be supplied to your legal representative on issue of the lease. Buildings insurance: All shared ownership properties are leasehold and require the association to insure them. These charges are payable by the purchaser and as with most policies there is an excess payable. You are responsible for insuring the contents of your home. If you fall behind with your rent or service charge it is very important you get in touch with us as soon as possible to discuss the options available. Your brand new home will benefit from a defects guarantee. This will be for a defined period, typically for the first 12 months after it was built, but this can vary. However, a minimum of 3-months is offered to all purchasers of new homes. It is your responsibility to repair and maintain your home after the initial defects period. If you own a house, you are responsible for all repairs to your home. If you live in an apartment, you are responsible for all repairs inside your home. Day-to-day repairs, maintenance and decoration to the outside of the apartments and any shared areas are paid for through your service charge. If you wish to make an alteration or improvement to your property you must contact us and ask for our written permission, prior to commencement of work. Subletting is not normally permitted, although we may give permission in exceptional circumstances. Following your financial telephone interview, we will hopefully be able to write to you formally offering you a property and the share you can purchase. We will also give you a date by which we want you to exchange contracts (this makes your intention to buy a home through Coast & Country a legally binding agreement). You have 7 days to accept this offer by signing and returning a form which confirms the name of the mortgage lender and legal representative you have chosen and the full names of all applicants purchasing the property which are needed for legal reasons. When you return this form, you will need to send a 300 deposit (known as the reservation fee ). This will be deducted from the purchase price on completion. Please note, should the sale not go ahead for whatever reason, including if you change your mind or we withdraw our offer of a home because you have given false or misleading information, we will retain this deposit to meet our legal and administrative costs. Document 5 Checklist

7 If you are not successful we will write and explain why. We reserve the right to withdraw any offer we may have made if you do not exchange contracts and complete the sale within the terms of the offer letter or if information provided is found to be misleading or incorrect. In the event of a dispute, the matter can be referred through our complaints procedure (available on request). Once you have accepted your offer, you need to formally instruct your legal representative who will be acting on your behalf in the purchase. It is important you choose a legal representative who is experienced in part-buy/ part-rent schemes to avoid unnecessary delays. We also recommend you obtain several quotes of the likely costs before you appoint a representative. You will also need to formally arrange for a mortgage from a recognised lender who is FSA registered. We are not qualified to offer or provide financial advice and strongly advise you contact an independent mortgage advisor as we will then be confident you will have received information from advisors who are familiar with this type of scheme. It is a good idea to use an independent mortgage advisor as they are not tied to the mortgage products of a particular bank, building society or specialist mortgage company. They will explain the advantages and disadvantages (early repayment fees, tied insurance policies, etc.) of the various mortgage products available and will recommend a mortgage that suits you. Most IFAs will charge a fee for this service. However, we can provide details of one whom is free of charge and understands the schemes we offer. It is your own choice if you wish to accept mortgage advice from the financial advisor whom we refer you to. We accept no liability for the performance or actions of any of these mortgage advisors. We recommend until you have been advised of a firm completion date you do not give notice on your existing accommodation. Coast & Country Housing Association can accept no liability if you choose to do so. When homes are not build complete at the time of initial purchase, we can only provide an estimate of approximate completion date and a great deal is out of our control at this stage. None of our team will be able to offer you a guaranteed date. The information you have provided may be used for statistical purposes in accordance with the Data Protection Act I confirm the above has been explained to me and I understand all the information given about how the scheme works. I certify I am not employed by any subsidiary of Coast & Country Housing Association, and have not been employed by any subsidiary of Coast & Country in the last twelve months and I am not related to an employee or ex-employee or Board/Committee Member of any subsidiary of Coast & Country. I understand a false declaration which leads to a breach of Schedule 1 of the Housing Act 1996 may lead to any purchase or sale contract being declared null and void and I may be liable for contingent costs. Signed (Applicant): Print Name: When you have chosen your mortgage you will need to fill in a mortgage application form and we will need to see a copy of this within 5 working days of accepting your offer of a property. Date: We would expect the exchange of contracts will take place within 8 weeks of reserving a property. At this point your legal representative will request a deposit to exchange contracts of 500. This means a total of 800 would have been paid in deposits prior to exchange of contracts. Interviewed By: Document 5 Checklist

8 CCH Ref: Date Recieved: Coast & Country 14 Ennis Square Dormanstown Redcar TS10 5JR Tel Fax Coast & Country Housing is the largest provider of affordable homes in Redcar & Cleveland and one of the leading housing companies in the North East of England. Coast & Country Housing Ltd is a Community Benefit Society registered under the Co-operative and Community Benefit Societies Act Registered Office: 14 Ennis Square, Dormanstown, Redcar TS10 5JR. Registered with the Financial Conduct Authority No Vat Registration No