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Shared Ownership and other Low Cost Home Ownership Options

The Royal Borough of Windsor & Maidenhead works in partnership with Housing Associations to provide a shared ownership scheme, which is a means of providing homes for people who would rather buy than rent, but are unable to afford the cost of a full mortgage.

In order to qualify for the scheme applicants need to be either resident, or employed permanently in a full-time position, in the Royal Borough and have done so for at least six months.

You must be a first-time buyer and have a minimum salary of £14,000 for a single income, or £35,000 for a joint income per annum to be considered, although a larger income may be necessary to qualify for the appropriate mortgage. In order to be considered for this scheme you must complete a Statutory Register form and tick the shared ownership box so your details can be added to the list.

If you are a Housing Association Tenant in this Borough and wish to be considered for shared ownership you will need to contact our Shared Ownership Co-ordinator on 01628 683628 and ask for your name to be added to the list, you do not need to complete a Statutory Register form. Housing Associations have different rules as to what share you can purchase but it is usually 50% and you would then pay rent on the other half. If you are successful in purchasing a shared ownership property and wish to purchase further percentages of the property, you can do this by what is know as 'staircasing', but his will be outlined in your handbook from the Housing Association in question.

The Council work with Catalyst Housing Group, the government appointed HomeBuy Agent covering the Royal Borough of Windsor & Maidenhead area, to promote the Homebuy/Shared Ownership initiative and all the available options. You should register with Catalyst Housing Group by telephone, 0845 601 7729 or complete an online application form on the Homebuy website. http://www.catalysthomebuy.org.uk/ .

HomeBuy is a Government-led initiative that enables eligible individuals and families to get on to the property ladder or alternatively into discounted rental accommodation, by offering assistance in a number of different ways.

SHARED OWNERSHIP

NewBuild HomeBuy

This is also known as 'Part-buy/part-rent'. Under this initiative, eligible individuals are able to become home owners by purchasing a share of a newly built property (from as low as 25%) and then pay a subsidised rent on the portion they don't own. Individuals then have the opportunity to increase their share of the property as their financial situation allows by 'staircasing'. However, this is not compulsory. Catalyst Housing Group can provide you with details of the developments in your area that offer 'part-buy/part-rent' opportunities. From time to time 'part-buy/part-rent' properties will become available as a result of existing owners moving further up the property ladder. These are known as 're-sale' properties.

EQUITY LOAN SCHEMES

HomeBuy Direct

The buyer purchases a new home in a designated HomeBuy Direct development, with assistance from the Government and the house builder. The assistance comes in the form of two equally divided interest-only loans. The loans can total up to a maximum of 30% of the total purchase price, therefore requiring the purchaser to raise a minimum 70%. This would be by way of a mortgage plus any deposit, if available. (Note: A deposit may not always be required).

There are no loan payments for the first five years. At year six you will pay 1.75% 'interest only'. This is divided into 12 montly payments. This charge rises annually by an amount in line with the Retail Price Index plus 1%. There is an option to make part or full repayment of the equity loan ('staircasing') after twelve months. With HomeBuy Direct, the purchaser will always be the legal owner of the property and can sell it on the 'open market' without restriction, if desired.

First Time Buyer' Initiative (FTBI) - Equity Loan

This initiative only applies to specific developments and allows first time buyers to fund from just 50% of the proposed purchase. The Government will then fund the remaining share. For the first three years there is no interest charge on the Government funded portion. After this time a nominal staggered interest charge is applied. There is an option to repay the loan in installments of 10% after the first 12 month period.

FTBI is now in its final stages and will ultimately be replaced by HomeBuy Direct.

Intermediate Rent

This option offers new build properties at 80% (or less) of current market rents and is available through a number of Housing Associations. This option is also available through some Key Worker organisations such as NHS Trusts who aim to help qualifying or newly qualified staff to settle into their jobs and local community.

Rent to HomeBuy

Under this scheme, commonly referred to as "Try Before You Buy", eligible individuals are able to rent a newly built home provided by a Housing Association at a rate that is normally around 80% of the current market rate. Depending on the development, the individual has the option to convert the rental agreement into shared ownership (part-buy/part-rent) after a period of between 2 to 5 years.

Social HomeBuy

Is an initiative where housing association and local authority tenants are helped to buy their current home. This is likely to be of interest to tenants who don't qualify for the 'Right to Buy' or 'Right to Acquire'. Interested parties should contact their landlords to see if they are participating in this scheme.

ELIGIBILITY CONSIDERATIONS

First time buyers - this will be subject to qualifying criteria.

Key Workers - as defined by the Home and Communities Agency (HCA). Likely to include those working in the public sector in health, education or community safety - (such as teachers, nurses, social workers and police officers) in areas where high house prices are affecting recruitment and retention.

Social Tenants and those on the housing register - Tenants of councils and housing associations and those who are on the Local Authority Housing Register.

Those who have had a major change in circumstances - current or previous home owners who are looking for a new property as a result of a major change in their personal circumstances, eg. divorce/separation, victim of domestic violence etc. Subject to approval.

Other - those who have previously owned a property, but are not owners at the present time maybe eligible to apply. Please ask.

If you meet these requirements and are not already on the Royal Borough of Windsor & Maidenhead's housing register please contact the Housing Options Team on 01628 683628 or send an e-mail to Housing@RBWM.gov.uk to request an application form.

You will also need to register with Catalyst Housing Group by telephone, 0845 601 7729 or complete an online application at www.catalysthomebuy.org.uk More details about the available options and schemes are available on the website.