YOUR GUIDE TO SHARED OWNERSHIP

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YOUR GUIDE TO SHARED OWNERSHIP

Shared Ownership is a part-buy part-rent scheme run in conjuction with the government that helps those that qualify into home ownership.

Shared Ownership is a great way to get on the property ladder when you can't quite afford to buy a home on the open market. You can buy an initial share of your home between 25% and 75%, based on your affordability, and make a small monthly payment to rent the remaining share from us. You are eligible for the scheme if:

You have a household income of less than £80,000

You are a first-time buyer

You have no ties to any other properties on completion

You are unable to buy on the open market

The scheme works by offering a percentage of the full market value of the property. For example: the property you want is worth £100,000 and you can obtain a mortgage of £50,000, meaning you can buy a 50% share, and would pay a discounted rent amount on the remaining 50% share that we own.

When you're in your home, you can purchase additional shares or even the remaining share until you own the property outright. There are no timescales or deadlines on when you do this, it is completely your decision based on what you can afford. This process is called "staircasing". The more shares you purchase, the lower your monthly rent payments.

Shared Ownership helps you to get on the property ladder and own your dream home without having to pay the full market price up front. Other benefits of the scheme include:

You can buy as much of the property as you can afford

It's a great way to get out of the renting cycle and become a home-owner

You can own a high quality, new build home affordably

It's a manageable way to purchase a home without needing a huge deposit

You own the home and can decorate it however you like

You can sell your home at any time and will benefit from any increase in value

THE ADVANTAGES OF SHARED OWNERSHIP

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Step 1Find the home you want to purchase and fill out the Shared Ownership

application form on the Help To Buy website. You can speak to a member of our sales team if you need any help.

Step 2Once your application is approved an you can provide us with a mortgage in

principle or proof of funds, you can reserve your new home.

Step 3We will then send you the relevant documents and once these are returned

to us along with your solicitors details, we can proceed.

Step 4With our solicitors now instructed and the sale going through, we will work with you to help your through the purchase and make it as stress free and

possible.

Step 5We can arrange a completion and move in date for your new home!

SHARED OWNERSHIPAPPLICATION PROCESS

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"Where can I find a Shared Ownership property?"

Our properties are advertised on our Space Property website, the Help To Buy NEYH website and on Right Move. We also have a dedicated Facebook page which we constantly update with new properties we have to offer! You can also call our sales team on 0113 825 6171.

"Can I apply for Shared Ownership?"

Shared Ownership is available to working people who earn less than £80,000 household income per year, can't afford to buy on the open market

and will not have your name on any other properties when you complete your purchase.

"How much will it cost?"

The deposit amount will be variable depending on which lender your mortgage is with. You should also take into account the reservation fee of £300, the mortgage valuation cost, legal fees and general moving in costs.

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QUESTIONS AND ANSWERS

"Where can I apply for the scheme?"

To check you are eligible for the scheme and to apply, you just need to complete a form on the Help To Buy NEYH website. Once this is approved, you can then book a

viewing with our sale teams at the property you desire.

"Do banks lend on Shared Ownership properties?"

Yes, there are 100's of mortgage products available to people purchasing a Shared Ownership home, with a surge in high street lenders who are now on board. The size of the deposit depends on a number of factors, but mortgages are available with deposits ranging from as little as 5% of the value of the share you purchase.

"How do I reserve a property?"

We ask for a non-refundable £300 reservation fee which is taken off the completion statement at the end. Along with this, we will need proof of funds that you can afford to purchase this share of the property.

"If I want to sell in the future, how will this work?"

If you are thinking of selling your Shared Ownership home, give our sales team a call and we will guide you through the process. You will be free to market with an estate agent just as you would with an open market property, the only difference is you will

be selling your share based on the current value of the property.

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QUESTIONS AND ANSWERS

"Am I still eligible if I have previously owned a home?"

Yes, so long as you do not have ties to that or any other properties, you will still be eligible for the Shared Ownership scheme, provided

"I am selling my current home, but cannot afford to buy on the open market; am I still eligible?"

Yes you are still eligible if you cannot afford to buy on the open market, but you can only reserve a property if you have a buyer for your current home, and have

no ties to any other properties on completion of your new Shared Ownership home.

"Are there any restrictions on decorating my property?"

No there are no restrictions on decorating your Shared Ownership property, it is your home! All we ask is for you to let us know if you are wanting to structurally change the property e.g. making changes to any windows, external doors, walls or conversions.

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QUESTIONS AND ANSWERS

SHARED OWNERSHIP:STAIRCASING

The process of buying a bigger share of your home, or buying it outright, is called Staircasing.

The idea of Shared Ownership is to help get you on the property ladder when you can't afford to buy outright on the open market. The great thing is that on most properties, you have the ability to purchase more shares or the remaining share when you can afford it, allowing you to build up to owning 100% of your home.

You can increase your share by as little as 10% or staircase all the way to 100%*. The bigger the share you own, the lower the rent payments will be. Once you have staircased to 100%, you will no longer be a shared owner and will own the property outright!

*In some cases, a Shared Ownership property may restrict you from owning more than 80% of the property. However, where this restriction is in place, if you were to purchase the full 80%, the rent payments would be eliminated. You will be made aware of this restriction at the start of the process if it applies.

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Buying a bigger share of your home has many great benefits...

The bigger the share of the property you own, the lower the rent payments.

If you sell your home, you may still benefit from the increase in value.

There is no pressure to buy additional shares and no time limit on staircasing.

Staircasing allows you to own more of your home when you can afford it.

You have the opportunity to own your property outright.

If you own your home outright, you can sell it with no restrictions on the open market.

THE ADVANTAGES OF STAIRCASING

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STAIRCASINGPROCESS

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Step 1Call us and we will check your lease to see what you need to do first. The

property will need to be valurd, but who can do this depends on what your lease says.

Step 2Once we have received the valuation, we will work out all the figures and

confirm everything in writing.

Step 3Now all the figures have been worked out and we agree we are happy to

proceed, you will need to provide us with the details of your solicitor so our legal advisors can work together to complete the sale.

Step 4Once completion has happened, we will make all the necassary changes to

your rent account and confirm when this has happened.

SHARED OWNERSHIP:RESALES

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The great thing about Shared Ownership is that you can sell your share when you want to move on.

Step 1Call us and tell us that you want to sell your Shared Ownership property.

We will check your lease and let you know of any restrictions. You will need to get a RICs valuation done on your home and send this to us as long

as you are happy with the value of your home.

Step 2It may specify in your lease that your Local Authority has the opportunity

to nominate a buyer within 6-8 weeks. If they provide us with any nominations, we will direct them to the application process to ensure they are eligible, and arrange a viewing with yourselves. If they want

to proceed then we will let you know and progress with the sale, which would save you the estate agent charges.

Step 3If there isn't a clause in the lease that indicates we need a Local

Authority nomination, you will market the property with an estate agent of your choice, provided you pass the details onto us so we can run them

through our process.

Step 4Once we have an offer made my an eligible applicant, we will approve the

sale and begin the process with instructed solicitors.

QUESTIONS AND ANSWERS

"What restrictions might my lease have?"

Shared Ownership comes under the S106 agreement for affordable homes. In some cases, the Local Authority may have included in this agreement that the buyer has a local connection to the area. It can also state that the Local Authority has the right to nominate a buyer within 6-8 weeks. We will let you know, and any other parties, if this is the case.

"What are nominations?"

Nominations are made by the council. They are chosen from a list of people waiting for housing in the area. If we need to take nominations, the council will have a 6-8 week period to send us any potential buyers to be considered. The

buyers will have to be eligible for the Shared Ownership scheme, but we will deal with this process and update you on the way.

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"How do I know if my buyer is eligible?"

The potential buyer will have to apply for the Shared Ownership scheme through Help to Buy NEYH. Once they have been approved, the sale can

proceed. You won't have to check if they are eligible, we will sort all of that out on your behalf.

"Who can market my property?"

You can advertise your property with as many different estate agents as you want. You will have to cover any costs incurred, but there is no limit. Please remember that you can only advertise the property at the amount it is valued at and no more.

QUESTIONS AND ANSWERS

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Sales Office - 0113 825 6777Call our office for more information about Shared Ownership or to enquire about any of the properties we have available.

Help to Buy NEYH - 0113 825 6888Speak to the Help to Buy NEYH team about any

of your Shared Ownership queries.

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