Low cost home ownership

The HomeBuy initiative (April 2006) is a government funded programme to help people who wish to buy, but cannot afford to. HomeBuy schemes are to help first time buyers or people in other priority groups. This includes social housing tenants or where household incomes are less than £60,000.

Schemes include:

  • New Build HomeBuy (formerly Shared Ownership).
  • HomeBuy Direct.
  • Intermediate Rent and Rent to HomeBuy.

For more details, visit: Help to Buy .

New Build HomeBuy (formerly Shared Ownership)

With New Build HomeBuy, you buy part and rent part of a newly-built home from a housing association. You can usually purchase a minimum of 25% of the value of the property. The housing association holds the remaining equity and charge you 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 more shares in your home when you can afford it, until you own the property outright. This is known as 'staircasing'. When you sell the property, the proceeds will be split according to who owns what. If you own a 50% share in the property, you will receive 50% of the proceeds from the sale.

A number of housing associations in Calderdale are involved in building new-build HomeBuy properties. This includes Together Housing, St Vincent's Housing Association and Jephson Housing Association. To see available properties, visit: Help to Buy .

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% of a purchase price. This is for any specified properties within selected developments. This loan is co-funded by government and the developer.

Developments currently offering HomeBuy Direct in Calderdale are:

Builder Location Type property
Redrow Homes Keighley Road, Ovenden Houses

 

For more details and how to apply, visit: Help to Buy .

Intermediate Rent and Rent to HomeBuy

Intermediate Rent is where you pay reduced rent on a new-build home.

In the scheme you pay 'Intermediate Rent'. This is no more than 80% of the current market rent for up to five years. You use the time you are paying reduced rent to save up for a deposit. This helps you to get a mortgage and purchase your home later. 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 New Build HomeBuy scheme.
  • Your HomeBuy agent helps you to determine the proportion of the property that you can afford to purchase. This has to be 25 - 75% of the value of the property.
  • After you have bought the property you continue to buy further shares until you own 100%.

Note: This is only available on certain schemes. For details on the application process for Intermediate Rent homes, visit: Help to Buy .

 

See also