Open Market Homebuy
These two equity loan schemes are designed to help those who are
not able to afford to buy a suitable home on the open market in an
area where they live or work. The amount of funding offered will
be based on housing requirement and income. These schemes can be
used to purchase a house anywhere in England.
Own Home
An equity loan of 20-40% is provided by Places for People. The
remainder of the mortgage must be taken with the Co-operative
Bank. No rent is payable on the equity loan, nor does it accrue
any interest in the first 5 years. In years 6-10 interest on the
equity loan is paid at 1.75%, increasing to a fixed rate of 3.75%
in year 11.
The loan extends for 25 years. If the property is sold within
this time, the full loan must be paid back at the current market
value. Further shares in the property can be bought at any time to
reduce the equity loan. There are no early redemption charges.
Contact 0845 607 0110 for an application pack, or visit
Own Home.
MyChoice Homebuy
An equity loan of 15-50% is provided by Chase Group. The
remainder of the mortgage can be taken with any lender who will
offer a shared equity mortgage. No rent is payable on the equity
loan, but interest is payable from day 1 at 1.75% for the first
year, and at the Retail Price Index +1% thereafter. After the
first year applicants can buy all or part of the equity over a
period of time, to eventually own the property outright.
Contact your Homezone agent on 0845 658 4420 or visit
http://www.mho.co.uk/ for more
information
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 the
property outright without assistance.
Conditions:
- Maximum purchase price limits apply, dependent on the size
of the property to be purchased.
- The applicant will be advised of the relevant price limits
at the time of acceptance.
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.
- On completion of the scheme, the applicant is still
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 Open Market Homebuy:
- The RSL must be notified of the intention to sell.
- They will then advertise the property through Home Point
Herefordshire.
- If the are unsuccessful in finding a buyer for the shares,
the property can then be advertised on the open market through
an estate agent.
- Alternatively, RSL shares can be purchased at market value
and the property sold as whole.
Last Updated: 17 October 08,
Review Date: 20 September 2005