Do it Yourself Shared Ownership (DIYSO)

This scheme is often known as part rent/part buy.

The applicant must be able to finance a share of between 25-75% in the property, either through a mortgage and/or a lump sum. The minimum share allowed is 25%. If the applicant is unable to raise sufficient capital to cover 25% of the purchase price, the applicant will not be accepted. The remaining share is purchased by a Registered Social Landlord (RSL) and a subsidised rent is then payable to them on their share.

Criteria:

• The applicant must be registered with Home Point Herefordshire.
• The applicant must have the ability to finance a share in the property, either through a mortgage and/or through a lump sum.
• The applicant must be unable to afford to purchase a property on the open market without assistance.

Where the applicant is an existing RSL tenant:

• Their existing property must be in a good state of repair.
• They must not be in breach of any tenancy conditions.
• Their rent account must be clear at the time of the application and continue to be until the purchase has completed.

Conditions:

• Maximum purchase price limits apply, dependent on the size of the property required.
• The applicant will be advised of the relevant price limits at the time of acceptance on to the scheme.

Other Information:

• The applicant has the option to purchase further shares in the property from the RSL in the future. The shares must be purchased at the market value at that time.
• Permitted to purchase property size needed, plus one additional bedroom space.
• Applicant allowed to purchase a suitable property anywhere within the county of Herefordshire.
• On completion of the scheme, the applicant is considered an owner-occupier in terms of maintenance and management of the property. However, major works to the property will require written consent from the RSL.
• On death of the shared owner, the property can either be passed on by way of an inheritance, or sold (details of sale conditions explained below).

Sale of LCHO property purchased under DIYSO:

• The RSL must be notified of the intention to sell.
• The RSL will then advertise the property through Home Point Herefordshire.
• If they are unsuccessful in finding a buyer for the shares, the property can then be advertised on the open market through an estate agent by the owner (not the RSL).
• The new owners will continue to pay rent to the RSL.
• Alternatively, RSL shares can be purchased at market value and the property sold as whole by the prospective purchasers.

How to apply for DIYSO:

The applicant will need to provide the following information which is contained within the information pack:

• Completed application forms.
• Completed financial statement for existing income and expenditure.
• Written confirmation of the maximum mortgage that can be secured (without any assistance) and details of the proposed monthly repayments.
• Confirmation of savings or lump sum. A solicitors letter will be required if the sum is received following a relationship breakdown, or the sale of a former home.
• Bank statements for 3 months immediately prior to the application for all savings and current accounts.
• Wage slips (last 4 if paid weekly or fortnightly, last 3 if paid monthly or every 4 week period).

For further information, or to request an information pack please contact Strategic Housing Services, Housing Needs and Development team on (01432) 260269 or e-mail enablinggeneral@herefordshire.gov.uk

Last Updated: 25 June 08,
Review Date: 20 September 2005