AFFORDABLE HOME OWNERSHIP SHARED EQUITY SCHEME WITH CONWY COUNTY BOROUGH COUNCIL 36 LON BEDW, LLANDUDNO JUNCTION, LL31 9FE We are pleased to inform you that the above property is available for resale through Conwy County Borough Council s shared equity scheme (70/30), where Grŵp Cynefin is holding the equity on behalf of the Council. To be Nominated as a Designated Person to qualify for the purchase of the affordable units, you must have a local connection, and must not be able to afford to acquire a home suitable for your needs, and the needs of your household at normal market values, and not have equity in an existing dwelling. Grŵp Cynefin will carry out an affordability and residency check and Nominate a Designated Person to the vendor. How does the scheme work? You purchase the property at market value, but paying a sum equal to 70% of market value The 30% notional equity is secured as a second charge in favour of Grŵp Cynefin. There is no monthly rent or interest payable on the 30%. When the property is eventually sold, Grŵp Cynefin will be entitled to 30% of the market value of your property (notional equity), or if the property is sold to a Designated Person nominated by Grŵp Cynefin, you would sell the property to the nominated person at market value, the nominated purchaser will be required to enter into a second charge, for the 30% equity, simultaneously with the purchase of the property. A sum equal to 70% of market value will be paid to you. Re sale process When you decide to sell the property, you must inform Grŵp Cynefin, of your desire to sell. Grŵp Cynefin on behalf of Conwy County Borough Council will endeavour to nominate a Designated Person(s) who are registered on the Conwy County Borough Council s First Steps Affordable Home Ownership Register for your property. If after a specific time - Nomination Period of 13 weeks - and the property has been actively marketed for sale by the shared equity owner, and it is found that there is no Designated Person(s) who wishes to purchase, you would then be free to sell the property on the open market at open market value, but paying Grŵp Cynefin a sum equivalent to 30% of the market value at that time, but first discharging the first mortgage. Shared equity owner must be able to demonstrate to Grŵp Cynefin that all reasonable offers have been considered in good faith from Designated Persons.
To confirm the market value, Grŵp Cynefin will require a valuation report as certified by a professionally qualified Surveyor who is a member of the Royal Institute of Chartered Surveyors (RICS). The valuation must be from an independent source, i.e. not someone who is either involved with marketing or the sale of the property, or someone representing the seller or purchaser of the property. If an agreement cannot be reached between you and Grŵp Cynefin on the disposal value, it shall be ascertained by an independent qualified valuer nominated/appointed by agreement between the parties, or failing agreement by or on behalf of the president for the time being of the Royal Institution of Chartered Surveyors on the applications of either party and the decision of such valuer shall be final. You will be responsible for the cost. Valuation is valid for 3 months, if sale has not been completed within this period, the original valuer will be required to provide a letter to extend the valuation. Sale Price You can sell the property at a price higher than 70% of the market value if a higher offer is made. Nomination If Grŵp Cynefin does nominate a Designated Person(s) for your property, you must sell the property to the nominated person at market value, or a higher price; the nominated person will be required to enter into a second legal charge, for the 30% notional equity, simultaneously with the purchase of the property. A sum equal to 70% of the market value will be paid to you. We may make more than one Nomination and you should consider the nominations in date order registered on Conwy County Borough Council s First Steps Affordable Home Ownership register, but we assume that you would sell to the Nomination who offers you the highest price. Administration Charge On sale of the affordable property the Owners shall pay to Grŵp Cynefin a sum equivalent to 0.50% of the market value of the percentage share purchased by the nominee on completion of that sale. This is to cover the costs of the nominated housing association (Grŵp Cynefin) in administrating the Conwy First Steps Low Cost Home Ownership Register, and the administrative costs in assessing and nominating a Designated Person(s). Conditions of resale are noted in S106 planning Agreement. PROPERTY DETAILS AND PROCESS The property is a 2 bedroomed ground floor apartment, consisting of an open plan lounge/kitchen/diner, 2 bedrooms and a bathroom. Allocated parking with the property. Please find enclosed details of the property as prepared by the vendor. Asking price by vendor: 113,000
70% Affordable price: 79,100 (of asking price) Market value: 108,500 The market value of the property has been certified by a professionally qualified Surveyor who is a member of the Royal Institute of Chartered Surveyors (RICS), as a price at which the sale of the affordable property might reasonably be expected to be sold within the area on the open market to a willing purchaser with vacant possession. The vendor will need to ensure that he/she obtains the best price possible, therefore the price agreed between the vendor and the purchaser could be higher. ** Ground Rent and Service Charge The property is leasehold 150 year lease (from 2012) Ground rent of 150 payable per annum, A service charge of 680 per annum is also payable for the apartment. Mortgage and Deposit You must be able to access a mortgage and minimum deposit of 5% of purchase price. Your mortgage must be repayment mortgage. Prior to making an application for these properties, we would be grateful if you could contact a mortgage lender/mortgage consultant to make enquiries whether or not you are likely to be eligible for a mortgage. If you have a poor credit history you might not qualify for a mortgage The following lenders operate shared equity scheme, Halifax, Nationwide and Principality. It is advisable for you to approach an independent financial advisor (IFA) for mortgage advice rather than with a lender direct, as they are able to search for the best product from a number of lenders. Fees Please ensure that you have sufficient savings to meet legal fees, mortgage valuation fee and any other fees/costs relating to a mortgage application. You should generally allow at least 2,000 to cover these fees. In addition you will be required to pay Stamp Duty Land Tax (SDLT). No tax will be paid on the first 125,000 of the purchase price, and then you will pay 2% on the proportion between 125,000 to 250,000. For example, on a house bought for 150,000, you will pay 500 in SDLT. Properties situated in an area designated by the Government as disadvantaged may be exempt from (SDLT). Please visit http://www.hmrc.gov.uk/sdlt/intro/rates-thresholds.htm for further information Local Residency criteria The Association can Nominate more than one Designated Person to the vendor, although the Nominations will be made in date order registered on the Conwy County Borough Council First Steps Affordable Home Ownership register, nominations will also have to meet the residency criteria as per the S106 Planning Agreement which means that priority is given to the Nominated Designated Person with the local connection to the Llandudno Junction community, prior to neighbouring communities, and thereafter the whole of the County of Conwy. It will be up to the vendor to decide which Nominated Designated Person he/she sells to. You must meet the Local Residency criteria of:
Local Residency criteria You must meet the Local Connection criteria for affordable housing with priority being given to: PRIORITY 1 A resident who has lived in Llandudno Junction for a period of 15 years, Key worker in, or coming in to take up full time, long term employment in Llandudno Junction PRIORITY 2 A resident who has lived Llandudno Junction for a period of 10 years. A person in full time, long term employment in Llandudno Junction A person who has previously lived or worked in Llandudno Junction for more than 20 years, PRIORITY 3 A resident who has lived in Llandudno Junction for a period of 5 years A person who is moving into Llandudno Junction to look after an infirm or elderly close relative who is resident within the community. PRIORITY 4 If no suitable occupiers are found as above, the local residency criteria will be opened out to nearby communities of Deganwy, Conwy Marl and Llanrhos, then to Mochdre, Llandudno, Craig y Don, then to Penrhyn Bay and thereafter to the whole of the County. If no suitable occupiers are found as previously noted, applicants who have previously lived in the County Borough, or in an adjoining rural community council area outside the County Borough. What do I need to do next? If you wish to proceed with your application: contact the vendor for a viewing contact an independent mortgage advisor/mortgage lender to make enquiries whether or not you are likely to be eligible for a mortgage. If you have a poor credit history you might not qualify for a mortgage. Please provide a Decision in Principle letter. We cannot consider your application without this letter/notice. If interested in progressing your application, please provide the information/documents requested below no later than (7 days) Proof of earnings (if paid monthly copies of last 3 payslips, if paid weekly copies of last 12 payslips) for yourself and your partner (if applicable). If on a Zero Hours contract, please provide details of income earned over the last 12 calendar months. Copy of P60 dated April 2014 and April 2015 If self employed, certified s/e accounts or Inland Revenue tax assessment on Certificate SA302 is required for the last 3 years. Copies of bank statement for last 3 months for every account that you and your partner (if applicable) have.
Proof of any other income, e.g. Working Tax Credit, please provide full entitlement letter Private Pension. Proof of savings e.g. Tessa, ISA, Bonds, shares etc. Confirmation from a bank / building society confirming the mortgage available to you and your partner (if applicable) by way of a Decision in Principle letter.. Copy of any loan, finance/hire purchase agreements that you and your partner (if applicable) are currently repaying. Latest credit/store card or catalogue statement. If paying child care charges please provide evidence. Proof of at least 5% deposit and how you will pay the fees involved with buying a house. If friends/family are providing the deposit, we require a letter from them confirming the amount they will be providing Proof of local connection for one applicant - please provide a bank statement, P60, loan agreement letter, tenancy agreement, or a letter from the Register of Electors department of Conwy County Borough Council confirming your address, or letter from employer confirming employment for the last 12 months. If the local connection is close family, please provide confirmation of their address for the last 12 months. Proof of I.D Birth certificate, Passport. If my application is successful what happens next? If we are able to Nominate you as a Designated Person for we will confirm eligibility to you, and to the vendor. You make an offer for the property STC, if the offer is accepted; the vendor will confirm the agreed offer to Grŵp Cynefin, and provide us with names of solicitors. Make an application for a mortgage, once approved; you are required to provide a copy of the mortgage offer to the Association Completion would then take place on a date to be agreed between yourself and vendor. During the process, please do not hesitate to contact me if you have any queries, by telephoning the office or calling in. I look forward to hearing from you. Yours sincerely Affordable Homes Team