Shared Ownership FAQ's
What will it cost me?
You will have to pay your mortgage and the rent, the rent will
reduce as you buy more of property. If there are any communal
services or entrances you will have to pay towards the cost of
these as shown in your lease. If the property has use of any
communal areas, including gardens, paths, roads and entrances you
will have to pay towards the upkeep of these, again details will be
shown in the lease and the sales leaflets for the property. When
you have purchased all of the property you will still have to
contribute towards the cost of any communal services and areas.
There will also be the household bills for council tax,
electricity, gas, water and sewerage. You will also have to pay for
contents and building insurance.
Repairs and
Maintenance?
The lease will give full details but as a
guide:
For houses you will be responsible for the repairs and maintenance
to the property.
- For flats you will be responsible for maintaining the
inside of the flat and mhs homes will maintain the outside.
- mhs homes will maintain any
communal areas of the properties.
How much can I buy?
The
minimum initial share for properties in Thomas Harris Close is
40% with a maximum initial share of 75% for all schemes. You can
buy a greater share as the percentages shown will be the minimum
level for the property. The minimum percentage for each scheme will
be shown in the property particulars. The value of the properties
will also be set when they are marketed.
Buying a greater
share
Because of mhs homes' position we are able to allow
you to buy in more stages than government sponsored schemes, this
is known as staircasing. We will allow staircasing to occur in
steps of at least 10% of the current market value of the
property.
mhs homes will allow you to buy
further shares in the property once you have owned your share for 1
year.
When you are able to buy more of the
property the property is valued and the amount you can afford to
buy is calculated by you. Please note that you will have to pay mhs
homes’ costs when you carry out the purchase of further shares
of the property. This will include a valuation fee and legal fees
to transfer part of the property to you. We will aim to provide
details of these costs upon request.
How do I qualify?
To
qualify for one of these properties you must:
Have a local connection. Preference will be given to applicants
with either a local residential connection or who work within
Medway;
Be able to finance the purchase and afford the rent, mortgage
and other household bills;
There will also be restrictions based upon the level of income.
These properties are intended for people who cannot afford to buy
their home outright;
You will also need to be able have to
be able to pay the deposit and any shortfall in the mortgage loan
together with the legal costs of buying a property.
Mortgages
A number of mainstream organisations provide mortgages for shared
ownership schemes. We would advise you to check that the lender you
intend to use is happy to lend on this type of property.
Legal Advice
You will
need to appoint a solicitor or conveyancer to act on your behalf
during the purchase process.
Please note your home
is at risk if you do not keep up the payments on your mortgage,
rent and service charges on it.