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Low cost home ownership

In April 2006 the Government introduced the HomeBuy initiative. This is a government funded programme that helps people who wish to buy a property but cannot afford to do so. HomeBuy schemes are designed to help first time buyers or people in other priority groups (such as social housing tenants) where household incomes are less than £60,000.

Schemes include:

• New Build HomeBuy (formerly Shared Ownership)
• HomeBuy Direct
• Armed Forces Home Ownership Scheme (Pilot)
• Intermediate Rent and Rent to HomeBuy.

Comprehensive information about each scheme is available on my4walls|.

New Build HomeBuy (formerly Shared Ownership)

New Build HomeBuy is a scheme where you buy part and rent part of a newly-built home from a housing association. You can usually purchase a minimum of 25 per cent of the value of the property. The housing association will hold the remainder of the equity and will charge you a rent for the share you do not own. The combined monthly costs of the rent and the mortgage will normally be less than buying a home outright.

You can buy further shares in your home when you can afford to do so - this is known as "staircasing", until you own the property outright. When you sell the property, the proceeds will be split according to who owns what. If you own a 50 per cent share in the property, then you will receive 50 per cent of the proceeds from the sale.

A number of housing associations in Calderdale are involved in building New Build HomeBuy properties including Pennine Housing 2000 and St Vincent's Housing Association and Jephson Housing Association. Available properties are also usually advertised on my4walls: New Build HomeBuy|

HomeBuy Direct

HomeBuy Direct is a "shared equity scheme" designed to help First-Time Buyers into affordable home ownership. The scheme is offered on specific new build properties by a number of selected developers. Eligible buyers may be able to access an equity loan of up to 30 per cent of the purchase price of any specified properties within selected developments. This loan is co-funded by government and the developer.

Developments currently offering HomeBuy Direct in Calderdale are:

For more information and how to apply visit my4walls: HomeBuy Direct|

Armed Forces Home Ownership Scheme (Pilot)

This an equity loan scheme. The Armed Forces Home Ownership Scheme (AFHOS) Pilot is designed to assist serving members of the British Armed Forces (with four to six years service to find a suitable home on the open market.

The scheme is managed and delivered by Swaythling Housing Society. You should apply directly to Swaythling who will look at whether you are suitable for the scheme and assess affordability. For more information visit Armed Forces Home Ownership Scheme|

You can also contact Swaythling on 0800 028 1980 or enquiries@afhos.co.uk.

Intermediate Rent and Rent to HomeBuy

Intermediate Rent is where you pay reduced rent on a new-build home, enabling you to save for a deposit and then purchase the property at a later date.

In the scheme you pay 'intermediate rent, which is no more than 80% of the current market rent for up to five years. You use the time that you are paying reduced rent to save up for a deposit so you can obtain a mortgage and purchase your home at a later date. The decision to sell the property is at the landlord's discretion and only if it is economically viable. You should ask for more information on the property you are interested in.

How does it work?

• During the intermediate rent period, you may be able to buy your home through the NewBuild HomeBuy scheme.
• Your HomeBuy Agent helps you to determine the proportion of the property that you can afford to purchase, which has to be between 25 and 75 percent of the value of the property.
• After you have bought the property you continue to buy further shares until you own 100 percent.

Intermediate Rent is only available on certain schemes. Please visit my4walls: Intermediate Rent HomeBuy| for details on the application process for any homes available for intermediate rent.

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