Housing

Low Cost Home Ownership

Shared ownership is a form of low cost property ownership where you can part buy and part rent. These schemes are operated through out the borough by housing associations, which are approved, regulated and part-funded by the Housing Corporation.

2 types of shared ownership exist:

New Build Home Buy

This scheme helps people buy a share in a newly built property; the scheme is specifically designed to help those who cannot afford to buy a property outright on the open market.

How does it work?

The home buyer purchases the maximum percentage share of the property that they can afford through savings and a mortgage. The minimum share that may be purchased is typically 25-40%. A rental charge is paid on the remainder of the equity held by the Housing Association.

Later on you can purchase more shares at a minimum of 10% increments (this is known as stair casing) from the Housing Association, eventually owning up to 100% of the property. As the home buyer you will be fully responsible for the upkeep of the property in the same way as any other owner. Home buyers living in flats will have to pay a service charge.

Who is eligible?

The scheme is available to social housing tenants, those on our housing waiting list and key public sector workers.

Social housing tenants may also qualify for the right to buy.

Right to Buy

The Right to Buy is available to secure council tenants who wish to purchase the home they live in. Communities and Local Government has produced a range of information which is available on this topic.

Open Market Home Buy

This will enable you to buy a share in a property that you find on the open market.

How does it work?

As a home buyer you would buy around a 75% share of the cost of the property and a Housing Association will provide an interest-free loan for the remaining 25%. You can either repay the loan during occupation at 25% of the property's market value or repay 25% of its market value to the Housing Association when you sell it.

Who is eligible?

This scheme is available to key workers. If you are currently employed as a social worker or social work manager (in statutory children's services), teachers (both primary and secondary), nurses and health workers front line police officers or front line fire fighters.

Applicants must be able to demonstrate that they can afford the ongoing costs. Key workers that leave eligible employment must repay the equity loan within 2 years, as a proportion of the property's market value at the time. As a term of the loan agreement, the provider will be able to require a charge to be paid on their share of the home.

Applicants must repay the equity loan as an equivalent proportion of the sales proceeds when they sell.

All applicants for any of these low cost home ownership schemes should visit the Housing Options website for more detailed information.

Contact

Olivia Donovan

Team Leader

Housing Development Partnerships

Town Hall

1 Town Square

Barking

IG11 7UG

Tel: 020 8227 5724

Fax: 020 8227 2841

Textphone: 020 8227 5755

Email: olivia.donovan@lbbd.gov.uk|