Buying a home
At Mount Green, we are very proud to offer shared ownership properties through the Help to Buy scheme. Previously known as “Part Buy, Part Rent”, Help to Buy Shared Ownership gives those who cannot afford to buy a property outright an opportunity to step onto the home ownership ladder by owning a share of their home.
Shared ownership is simply part buying, part renting your home. The initial share (25%-75%) is purchased by means of a mortgage from a building society in the normal way. A subsidised rent is then payable to Mount Green for the remaining share.
After one year’s ownership, you can purchase further shares in your home until you own the property outright; helping you into home ownership in manageable stages. Alternatively, you can remain a shared owner indefinitely.
We offer shared ownership sales on new build properties, as well as existing properties.
How do I apply?
To apply for a shared ownership property, you must first register on the Help to Buy website shown below. All of our shared ownership priorities are listed and allocated through this website. You should also register with your Local Authority to be considered for a shared ownership property.
For more information, please follow the link to the Help to Buy website below.
To be eligible for Help To Buy:
- Your annual household income can be no more than £80,000.
- You should be unable to purchase a home suitable for your needs without assistance.
- You cannot be a current home owner (or be named on the deeds of another property).
- You must not have any outstanding credit issues (i.e. unsatisfied defaults or county court judgments).
We assist local first time buyers who would not otherwise be able to afford to buy their own home. Also we can assist key workers and job movers who are moving from a lower value area, as well as those who need to move because of a marriage or relationship breakdown.
You must have a regular income and be able to secure a mortgage for the agreed share that you are purchasing. You must also pay your mortgage and the rent payable to Mount Green on time otherwise you could lose your home.
This will depend on the value of the property and the amount of savings you have. People earning from £28,000 can potentially purchase a shared ownership property.
When buying a shared ownership home, you should allow for the following:
- A retaining deposit of £250 once you have made a formal offer
- Legal fees, which should be approximately £300-£350 and payable to your solicitor on completion of purchase. Ask for a detailed estimate from them.
- A building society valuation fee of approximately £200 will also be required
- Independent Financial Advisors charge around £500.
- Stamp Duty - You should check with your solicitor/licensed conveyance whether stamp duty is payable at the time of your purchase. If stamp duty is payable, you can either pay duty on your share or on the full value of the property. Your solicitor/licensed conveyor should be able to advise you on which option to take.
- Preferably you should also have a 10-15% deposit towards the share price as it is likely to be a condition of your mortgage, but your lender will advise you.
- Property Surveyor – we recommend that you commission a professional survey, even for new properties. The mortgage valuation will not point out any structural defects or repairs. The cost of a survey is from £400 upwards.
- Costs of removal - these can be quite large if you are moving several miles from the area in which you currently live.
- Your monthly mortgage repayment - this may fluctuate as interest rates change.
- Rent is payable to Mount Green monthly in advance, on the 1st of each month. Rent is revised annually in line with the Retail Price Index
- Usual household costs such as council tax, water rates, fuel charges.
- All repairs and maintenance costs to your home.
You will have to pay a service charge to cover the management fee, building insurance, grounds maintenance, repairs, cleaning of communal areas, etc. The charge is always greater for flats than for houses, as flats often have a communal entrance to maintain and must have a sinking fund for major repairs and a cyclical maintenance fund.
If you are a shared owner of a house, you are responsible for external as well as internal repairs and maintenance. Repairs to any communal areas are recouped via the service charge.
If you are a shared owner of a flat, you are responsible for internal repairs and maintenance. Repairs to the outside of the building and communal areas are recovered via the service charge.