Greener Homes Scheme (GHS) Information Brochure ALNESS
The Greener Homes Scheme (GHS) The Highlands Small Communities Housing Trust and the Highland Council successfully applied to the Scottish Government s call for applications to the Greener Homes Innovation Scheme. The Highlands Small Communities Housing Trust (HSCHT) is a registered Scottish Charity (SCO 27544). HSCHT, August 2014 (This document is based on Scottish Government, New Supply Shared Equity Scheme Information Brochure. Crown Copyright 2012, which has been adapted by HSCHT to explain the GHS in detail)
Contents 1. What is the Greener Homes Scheme? 2. What are the benefits? 3. Who is it for? 4. Am I eligible? 5. Where are the homes and how much do they cost? 6. Are there any special conditions? 7. Do I have to pay any fees? 8. Mortgage Finance 9. What else do I need to know? 10. How do I apply? 11. House plans
1. What is the Greener Homes Scheme and how does it operate? The Greener Homes Scheme helps people who would like to become home owners by providing them with the opportunity to purchase new homes that are sustainable, efficient and affordable. The new homes will meet the Scottish Building Standards Silver Active Level of sustainability, and will be highly thermally efficient. As a result the properties will have lower fuel costs and will continue to be affordable in the long term. The GHS is aimed at people on modest incomes as homes will be sold at least 20% below their open market value. The market value of each house will vary and will be determined by a chartered surveyor. The purchaser will have full title to the home, subject to the Rural Housing Burden detailed in section 6. The discount provided is protected by an equity share which will possibly vary depending on the location of the home and other prevailing factors.
2. What are the benefits? There are numerous benefits to purchasing a new home with the Greener Homes Scheme and some of these are highlighted below. The homes will be sold at a price that is approximately 20% below the open market value of the property. The homes will be brand new and constructed by Pat Munro Homes, who have a proven track record of building sustainable homes throughout the Highlands http://www.patmunrohomes.co.uk The houses will have lower running costs as they are being built to the Scottish Building Standards Silver Active Level of sustainability and will be more energy efficient. The homes will be highly insulated, have a mains gas central heating and rigid insulation. The homes will have Canadian Solar Black Panels (reference CS6P-250m) with a SAJ Sununo Invertor and a Landis & Gyr E110 meter. The homes have Rationel windows and Swedoor doors. 3. Who is it for? The Highlands Small Communities Housing Trust will allocate the homes based on the eligibility criteria that are set out below. To qualify for a home under this scheme, we prioritise those who are either, (i) (ii) (iii) (iv) (v) (vi) living in the area where the homes are located, have immediate family there, work in the area, or have a need to live there. Those currently living out with the area who can add social and economic benefit by moving to the area. Applicants from social rented housing We will also look at your finances to check that you can afford to proceed with the scheme. Generally applicants will have to demonstrate that they have difficulty in competing on the open market in their area. We would refer you to paragraph 8 with regard to mortgage finance. 4. Am I eligible? HSCHT will assess all applications to ensure that applicants are likely to secure a mortgage for the home, and assess the affordability based on their current circumstances. The home must be your permanent residence and the home you are allocated should be suitable for your current housing needs, where your
finances permit. We would refer you to paragraph 8 with regard to mortgage finance. 5. Where are the homes and how much do they cost? This brochure provides details on ALNESS. Location Newfield, Alness Number of Homes House size Tenure House Selling Price 4 2 bedroom semidetached homes Purchase at a discount with Rural housing burden Preemption Fixed now 105,000 80% Please find a copy of the indicative house plans at the back of this brochure. The anticipated entry date for two homes is October 2014 and the remaining two is January 2015 (at the time of printing). Please note that the date is subject to change, and a more accurate entry date will be provided as the build progresses. Homes are being provided by HSCHT in Daviot and Arisaig under the GHS. Please contact us if you would like a brochure for one of the other locations. 6. Are there any special conditions? Yes. There is a Rural Housing Burden attached to the Title of the home. This is a means of protecting the original discount offered on the home. If you buy the home, you will have full title to the property. Although, as the home sale price is discounted the title has a Rural Housing Burden attached which means that the HSCHT holds a pre-emption right. Whilst you can pass the home onto your children, if you or they decide to sell it there is a right of pre-emption which gives HSCHT the option to buy it back for the previously agreed equity share. Please see an example below for your information. Full details will be provided to successful applicants.
Example 1 Julie and her daughter purchased a house through the Greener Homes Scheme in 2013. Open market value of house in 2014 (100%) 150,000 Discounted house purchase price in 2014 (80%) 120,000 In 2025, Julie is offered a new job in Yorkshire and has decided to sell the home and move. Open market value of house in 2025 (100%) 180,000 Increase in house value over 11 years 20% Amount HSCHT can buy back the home for (80%) 144,000 Increase for Julie ( 144,000 minus 120,000) 24,000 (Plus any capital amounts she has repaid) Alternatively, Julie could consider transferring the home to her daughter. 7. Do I have to pay any fees? You will have to pay a Reservation Fee of 500 and this is non-refundable but will be deducted from the selling price should you complete the purchase. It is advisable to engage a solicitor now to act on applicant s behalf to complete the work involved in buying a home. The solicitor s fees are the responsibility of the purchaser. HSCHT s solicitor will deal with its interest in the scheme. When you take out your mortgage, there may be a deposit required, arrangement and valuation fees which you will need to pay to the lender as required.
8. Mortgage Finance While HSCHT will conduct a financial assessment to make sure that the house is not sold to someone who is unlikely to be able to afford it, we cannot, and do not carry out any kind of mortgage assessment or arrangement. It is the responsibility of the purchaser to ensure that they have the appropriate finances in place to fully fund the purchase. HSCHT can give some advice as to the banks that we commonly work with and are familiar with the Rural Housing Burden model. However, HSCHT cannot be held responsible for Banks changes of policy and for mortgage products which were available at the outset of the scheme being subsequently withdrawn. As already stated, we strongly recommend that you take financial advice before entering into any commitment under this scheme in order to be satisfied that the appropriate mortgage products will be available to allow you to complete any purchase. 9. What else do I need to know? We have consulted with Murchison Law, Inverness for the appropriate legal advice regarding the Greener Homes Scheme and they will be happy to speak directly to your solicitor if required. You can contact Murchison Law on 01463 709 992. HSCHT will provide statistics to the Scottish Government as requested by them. This will include information on applicant s income but not personal details. In addition data will also be collected from successful applicants relating to the performance of their homes so that the effectiveness of the scheme can be assessed by the HSCHT and the Scottish Government. HSCHT has a valid standard Consumer Credit Licence (633499) and is a registered Scottish Charity no. SCO 27544 and a Company Limited by Guarantee (SC-182862). Our Memorandum and Articles of Association allows us to provide assistance, including grants and financial help to people who need affordable housing. HSCHT has taken care to ensure the accuracy of this brochure, however they cannot be held responsible for any errors or omissions.
10. How do I apply? The application process is outlined below: 1. Complete HSCHT s application form. 2. Provide HSCHT with the supporting documents listed on the enclosed form to prove that you can fully fund a mortgage. Please return the form and documents by the specified date otherwise your application may not be considered. 3. HSCHT will assess the applications and allocate the homes according to their allocations policy. All applicants will receive a letter or email to let them know if they have been successful or not. 4. Successful applicants will be sent a reservation form, which they need to return to HSCHT with the agreed reservation fee to secure an option to purchase the home. 5. HSCHT will instruct their solicitor to provide successful applicants with the option to purchase and the other associated paperwork for the home. You will be required to sign up to the Greener Homes Scheme at this point, and whilst not essential you are advised to take advice from your own solicitor on all aspects of the scheme. 6. You will be kept up to date as to when the home will be ready for occupation. 7. If you have paid a reservation fee and decide not to continue with the greener homes scheme, the fee will be retained by HSCHT and the home re-allocated. To apply for the Greener Homes Scheme please return the registration of interest form to Morven Taylor at HSCHT E: morven.taylor@hscht.co.uk
11. House plans Newfield, Alness Numbers 5 and 6 anticipated completion, October 2014 Numbers 11 and 12 anticipated completion, January 2015 All plans are provided for information purposes only and may be subject to alterations.
Please contact us directly if you have any questions or would like more information, we ll be pleased to help you. HSCHT 2014 info@hscht.co.uk www.hscht.co.uk 7 Ardross Terrace Inverness IV3 5NQ 01463 233 549