HomeBuy Frequently Asked Questions
Below are our most frequently asked New Build HomeBuy questions. Select from the list below - we hope these answer any queries you may have. If they don't, please feel free to click here to contact us.
What is New Build HomeBuy? (Previously Shared Ownership)
New Build HomeBuy is a low cost home ownership scheme which aims to help people who want to become homeowners but cannot afford the cost of buying a property outright. By giving priority to tenants of Housing Associations and Local Councils, the scheme also aims to free up much needed rental accommodation.
Once you have been accepted as eligible for the scheme, you can purchase a share in a new property being built by or for the Association or another Association in the area. The purchase of the share is funded by using any savings you may have, or obtaining a mortgage in the normal way, and then you pay a rent on the remaining share which you do not own. Our agents for New Build HomeBuy are Orbit First Step. For more information, see section A10 of the Tenants Handbook
Can I buy my Orwell Property?
Some tenants may be eligible for the Right to Acquire scheme. This gives tenants the legal right to buy the home they currently rent.
To qualify, the property you live in must have been built or purchased by Orwell Housing on or after 1st April 1997 and must have been funded using Social Housing Grant provided by the Homes and Communities Agency or a local authority.
As well as occupying a qualifying property, you must also have been a public sector tenant for a certain time depending on when your first tenancy commenced. You will not be eligible if you are bankrupt or have a bankrupt petition pending against you, are the subject of a possession order served by the court or subject to a formal creditors agreement made under the Insolvency Act.
The discounts you would receive are fixed by the Government and the amount you receive will depend on where you live. The discounts currently range from £9,000 to £16,000.
For more information regarding the Right to Acquire, contact your Housing Officer, or call the Homes and Communities Agency on 0300 1234 500
What support is there to help me buy my home?
Ipswich Building Society has teamed up with Flagship Housing Group, Orwell Housing Association and Bedfordshire Pilgrims Housing Association (bpha) to offer an exclusive new shared ownership mortgage. The aim is to help more people take up the shared ownership option and get a foot on the housing ladder.
For further information about the new shared ownership mortgage, contact:-
Ipswich Building Society 0845 230 8686 or www.ibs.co.uk
Flagship Homes 01603 255444 or www.flagship-homes.co.uk
Orwell Housing Association 1483 218818 or www.orwell-housing.co.uk
bpha’ specialist sales arm Keyhomes East on 0845 4566757 or www.keyhomes-east.org.uk
Why consider New Build HomeBuy?
If someone has a regular income, but cannot afford to buy a property on the open market outright, New Build HomeBuy enables you to gain a foothold on the home ownership 'ladder' at a cost usually less than outright purchase.
This is possible for two reasons:
a) The deposit required is less because the shared ownership purchase is obtaining a mortgage only on a portion of the property rather than on the whole of it
b) You will probably pay less each month in comparison with buying outright because the rent is calculated on a non-profit making basis.
What is the minimum share I can buy?
The minimum share you can buy is 25%
How and when can I buy further shares?
As personal circumstances or finances change, you can buy further shares in your home at any time after the first year of your initial purchase. You may buy any size of the share remaining until you gain 100% ownership as long as it is in 25%, 50% or 75% portions. The price you pay depends on the value of your home at the time you wish to buy further shares. Remember that house prices can go up and down. This means that sometimes you may pay more for buying additional shares, or have to sell at a price less than you originally paid.
In some areas, especially rural locations, the maximum share you can purchase is restricted to 80%. This is to ensure that the homes remain available to local people. If this is the case, you will be advised before you purchase a share in your home.
How much do I pay?
This depends on the share that you are wishing to buy, the interest rate you could borrow on a mortgage, and the value of the property in question. See a worked example of how much it may cost. Check our links page for some sites that may help.
Will the rent ever increase?
The rent will increase on an annual basis on the 1st January, as it would if you were renting any other Orwell property. The rent that is charged covers the cost to the Association of borrowing the money to build the property and our management costs.
Who is responsible for repairs?
All repairs and maintenance of the property are your responsibility.
Who is responsible for insurance?
Contents insurance is your responsibility. It is worth shopping around to ensure that you are getting the best deal.
The Association takes out building insurance for the structure of the property and may request a contribution towards this cost or any excess in the event of a claim.
Can I make alterations or improvements to my home?
You may not make any alterations or additions to the interior or exterior of your home without previous written consent of the Association. If you wish to make any changes, please speak to your housing officer.
How do I sell my property?
Owners have a choice of how to sell their home;
1. You can sell your share by selling the lease that you have. Under the terms of your lease, Orwell can nominate a purchaser to whom you must sell at a value set by an independent valuer. The Association can make no claim on any profit you make when selling your share. You will receive any gain or increase in the market value of your share subject to deductions for any outstanding rents or service charge arrears. Remember too, that you are responsible for paying valuation fees and your own legal expenses.
2. The property can be sold in full. To do this, you would simultaneously buy the remaining share from the Association and sell the whole property to the new owner.
Some properties can only be sold on to a buyer with a local connection to the area that the property is in. This would be detailed in your lease.
If you are thinking of selling your property, contact your Housing Officer for advice.
Can I source my own HomeBuy property?
Orwell do not offer Open Market HomeBuy, where you find your own property. For details on Open Market HomeBuy, contact Orbit First Step on 08458 50 20 50.
