Frequently asked Questions

The following questions are the most commonly asked about purchasing your Home through New Build Homebuy, Equity Loan and about Thames Valley Housing. If you have any other questions please send us an email, or ring Home Ownership on 0845 35 12345.

What Is New Build Homebuy?

New Build Homebuy (formerly Shared Ownership) is a government led initiative to help people who can not afford to buy a home outright, purchase their own home. It is one of three Low Cost Home Ownership products available through the Homebuy scheme.

How much do I have to purchase?

The initial minimum share you are required to purchase ranges from 25%-75% of the property value with rent payable on the remaining share. Most Thames Valley developments have a minimum initial purchase of between 30%-50%.

Who is eligible ?

The scheme is designed for people who can not afford to purchase a property in any other way.

You may qualify if:

• You are an existing local authority or housing association tenant;
• You are on your local authority and housing association waiting lists in priority housing need;
• You are a public sector key worker;
• You are a first time buyer;
• You have a local connection to the area;
• You have gone through a relationship breakdown;

How much do I need to earn?

The required income level depends on the value of the property which will be determined by location and size.

What is the cost of buying a New Build Homeuy home?

Mortgage valuation: Your mortgage lender will normally charge you a fee to value the property you want to buy.

Legal Fees: You will need to appoint a solicitor to deal with all the legal work, you are free to select your own or use one of panel solicitors who are experienced in New build Homebuy.

Search/Land Registry: This will be organised by your solicitor and is in addition to their other fees.

Stamp Duty: You can either pay stamp duty on the share your buying or on the full value of the property. Please consult your solicitor for a full explanation.

Household Bills: You are required to pay for your household bills, including council tax.

Rent: The rent is calculated as a percentage of the housing association's share of your property. The rent increases on April 1st each year, now usually 0.5% above RPI (Retail Price Index).

Mortgage Repayments: This is dependant on the size of you mortgage and interest rates. You should consult an independent Financial Advisor for advice.

Service Charge: The charge includes a management fee plus the cost of maintaining any common areas, including building insurance.

The example below provides an idea of the typical cost of buying a homebuy property. (It does not include the costs for solicitor/mortgage fees, utility charges and council tax)

Example:

Two bedroom apartment in Farnham, Surrey:

Value: £157,500

Minimum share purchase: 50% = £78,750

You would pay the following monthly payments for your property.

Estimated Mortgage payment: £563.76 per month
(Based on 6% repayment over a 25 year term. From leading lenders for a 100% mortgage, excluding discounts often available.)

Rent: 2.5% (of un-purchased amount) = £164.06 per month

Service Charge: £78.20 per month

Estimated Monthly Repayment: £806.02

Does the tent contribute towards my mortgage & how much will I pay?

No, the monthly rent payment does not pay off your mortgage. It pays for the portion that you haven't purchased.

The rent is normally 3% of the un-purchased amount which is well below normal market rent.

Can I buy the property jointly with someone else?

Yes, as long as your joint incomes don't exceed the maximum and you both meet the eligibility requirements.

Can I buy further shares?

It is possible to buy further shares over time and eventually own the property outright. This is called Staircasing. The cost for further shares is based on the market value of the property at the time you decided to staircase.

If you decide that you would like to buy a further share in your property, TVHA will arrange for your home to be valued by an independent surveyor who is registered with the Royal Institution of Chartered Surveyors (RICS). You will be required to pay for this valuation.

If you decide to proceed with buying a further share it will be at a price based on the current valuation. The rent you pay to Thames Valley Housing will be reduced proportionately to zero in the event that you staircase to100% ownership.

What are my responsibilities?

You have most of the normal rights & responsibilities that you would have if you bought the property out right.

Your main responsibilities are:-

• Paying your mortgage monthly.
• Maintaining and decorating your home.
• Insuring the contents of your home.
• Paying all household and service bills, including council tax.
• Paying your rent and service charge on time each month.

The full terms and conditions would be specified in your shared ownership lease.

What are Thames Valley Housing's responsibilities?

TVHA's main responsibilities are:

• Managing the development;
• Repairing and maintaining the structure & common parts if the property is a flat in one of our developments;
• Maintenance of any communal areas;
• Insuring the building;
• Setting and collecting the rent on the share Thames Valley Housing owns;
• Setting and collecting the service charge.

What happens once I've been offered a property?

Once you have been offered a property you will have one week in which to accept the offer. To accept the offer you will have to provide the following:

1. A copy of the formal mortgage offer from your mortgage lender.
2. Details of your solicitor and financial advisor.
3. A cheque for £250 if you complete on the purchase. This will taken off the purchase price. If you withdraw then you will not be entitled to refund, however if TVHA withdraw the offer you will receive a refund of £250.
4. Copies of three months salary slips for yourself and the person you are purchasing with.

If any or all of the above information is not received within the time scale set out in the offer letter the offer will be cancelled.

How do you sell a Homebuy property?

As long as you're still only own a percentage, and you have not staircased to 100%, TVHA will assist you to sell the property. Under the terms of your lease, TVHA must nominate someone requiring a homebuy property within 3 months.

If we can't find a buyer within this time, you can then sell through an estate agent or privately.