HOME... where your story begins Your guide to shared ownership
What is shared ownership? Shared ownership gives you the opportunity to buy a share in a home of your own, and pay subsidised rent on the remaining share. It is suitable for people who cannot afford to buy a home outright on the open market. HOME... WHERE YOU dream big, safe, FEEL EXPLORE YOUR imaginations, talk SHARE LOVE, AND CREATE memories
How does it work? HOME... WHERE grow YOU You buy a share in a home and pay rent on the share you do not own. We retain ownership of the share that you do not own. You become the leaseholder and we are your landlord. Usually you buy between a 25% and 75% share in the property. The higher the share you purchase, the less rent you will have to pay on the other portion. You may also be required to pay a monthly service charge to cover costs such as buildings insurance, communal maintenance and works like window cleaning if your home is within a block of flats. The share you buy is normally funded through a mortgage which you will need to arrange with your chosen bank or building society. However, if you have sufficient savings, you may choose to pay cash for your new home. Whether you buy a new-build house or flat usually you will be granted a 125 year lease. Your lease will allow you to purchase further shares in your home, known as staircasing; and will also set out your responsibilities for repairs, payment of rent and service charges, and how you can sell your home. While you won t have bought your home outright, you will have the same rights and responsibilities of a full owner-occupier.
How much does it cost? This depends on the cost of your home and share you are buying. The larger the share you purchase, the lower the rent. Usually the minimum deposit required to purchase a shared ownership home is 5% of the share purchase price. Costs when you buy include: Solicitors fees Mortgage arrangement and mortgage survey fees Stamp duty (if applicable) Removal costs 500 reservation deposit to secure the property from us (this will be deducted from the final purchase price of your home) Everyday living costs once you have purchased your home might include: Monthly rent and service charges M ortgage payments and mortgage protection insurance Contents insurance Council tax W ater, gas, electric, telephone charges and all your other household bills All repair and redecoration costs Food and entertainment HOME... WHERE YOU share love
HOME... WHERE YOU create memories Here are some frequently asked questions Am I eligible? You can apply to buy a shared ownership home if you can answer yes to the following criteria: You are registered with Help to Buy South You are unable to buy a home outright on the open market Your household income is less than 80,000 per annum You are able to meet the costs of a deposit, rent, service charges, mortgage payments and all other costs associated with buying and running a home You do not have any outstanding County Court judgements It is your intention to live in the property full time and not use it as a buy to let property Can I increase my share? Increasing the share you own is known as staircasing. You can usually choose to do this at any time. The price you will pay for further shares in your home will be set by a Royal Institution of Chartered Surveyors (RICS) valuer based on the open market value of your home at that time. For example, you own 50% of your home and the valuation is 100,000, then it will cost you 50,000 to buy the remaining share of your property and own your home outright.
More frequently asked questions How are properties allocated? Providing there are no restrictions or local planning agreements which specify otherwise, once you are deemed eligible priority is given as follows: 1 Existing social housing tenants and those currently serving in the Armed Forces or have recently been discharged 2 Those who are considered to be in a high housing need 3 All other applicants HOME... WHERE YOU EXPLORE YOUR imagination Can I alter or improve my home? You must get written permission from us before you carry out major work. You may also need to get permission from your mortgage lender. You will be responsible for paying for the works and when you sell your share, you will usually receive any increase in value as a result of them. Your lease is a full repairing lease, which means that you are responsible for all works and repairs to your home in the same way as any other home owner. Do I have to live or work in the same area as the property? Normally no, however, in some instances a development may have a specific local connection criteria to enable you to buy there. Please ask us for more details. Can I keep pets? Your lease will tell you if you can keep pets. If you live in a house there are not usually any restrictions; however, if you live in an apartment you are unlikely to be able to keep a pet.
Building One Riverside Court Bowling Hill Chipping Sodbury Bristol BS37 6JX Contact a member of the Sales Team: W: www.merlinhs.co.uk E: sales@merlinhs.co.uk T: 01454 821666