Shared Ownership

Topic updated February 2018

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Introduction

Eligibility

Income limits

Priority

Property size entitlement

Local Authority support for existing home owner cases

Who do I contact?

 

Introduction

Shared Ownership is one of a number of initiatives that come under the 'Help to Buy' banner. Shared Ownership allows successful applicants to buy a part share in the total equity of a property, and pay rent on the remainder of the equity (until they are able or wish to purchase more equity, either in percentage stages or in one go).

 

Individual housing providers, mainly housing associations, build properties for sale on shared ownership terms, either using their own reserves or through an element of grant funding. The share the applicant buys is priced as a percentage of the open market value. Grant funding may be required to subsidise the rent element, so that shared ownership is cheaper than purchasing outright in the area - otherwise the product would not be assisting people to buy.

 

The information on eligibility etc (that is contained in this topic) is based upon the Homes England's Capital Funding Guide (formerly the Homes and Communities Agency).

 

The local Help to Buy Zone Agent (or LHBA) co-ordinates applications, and opportunities across all providers in the region.

 

Eligibility

 

 

Income limits

There has been some discussion around whether residents’ income should contribute to the household income for Help to Buy Agent LCHO approval purposes. The income of all household members will be assessed, even when they are not going to be named on the mortgage (e.g. a partner not able to obtain a mortgage). This does not extend to adult children who will be living in the property.  Therefore, any application received where the household income is in excess of £60,000 will be declined. Clarification can be obtained from the Stakeholder Team,Help to Buy East and South East

Email: HTBStakeholders@bpha.org.uk

Priority

 

Priority must go to the following groups, set in priority order:

 

Property size entitlement

Applicants are allowed to be considered for property that provides one bedroom in excess of their current requirement (although obviously this is subject to affordability tests)

 

Local Authority support for existing home owner cases

We may receive referrals from the Zone Agent, in relationship to existing home owners who have applied for the scheme (including existing shared owners wishing to move, but excluding applicants for older persons' shared ownership). This is because local authority support is required in these cases specifically. There must be a reason why existing home owners are accepted (housing need, decided on a case-by-case basis), so it is not a 'rubber-stamping' process.

 

Your guidance, if you receive such a referral, is that if:

You should approve the referral. There is no need for the applicant to actually apply on Home Link or be considered 'in priority need'.

 

The following case shows what the referral form looks like and how to respond to the query: CCC/STA01011900a

 

Who do I contact?

If you are considering offering your support to an existing home owner, as described above, discuss this with:

 

   

i_black.jpgHayley Roan

Help to Buy Stakeholder Manager for Norfolk, Suffolk and Cambridgeshire

Help to Buy East and South East

Mobile: 07717 760792

Email: Hayley.Roan@bpha.org.uk

Website: www.helptobuyese.org.uk