Accent Housing

SHARED OWNERSHIP

ACCENTGROUP.ORG

A guide to Shared Ownership

INTRODUCTIONCongratulations! Thinking of taking a step onto the property ladder is an exciting time. This brochure will help you to understand the benefi ts of the scheme, the buying process and provide you with all other essential information.

At Accent, we pride ourselves on our outstanding customer service standards and will guide you through the process every step of the way. Should you have any queries, please contact our dedicated sales team who will be happy to help.

3Accent Housing

4 A guide to Shared Ownership

WHO ARE WE?

We are Accent, a housing association that has provided homes and services for a diverse range of customers since 1966.

Our 20,000 properties, which are spread over the North, East and South of the country, are home to over 35,000 people. At Accent, we believe in putting our customers first. We exist to improve lives and provide people with high quality affordable homes.

We are committed to being ‘with you for your journey’, whether that is helping customers take their first step onto the housing ladder, looking for a new beginning or searching for a new home with more support.

We have hundreds of shared ownership homes across the country; we have helped thousands of people find a place to call home. Our team are experienced and proud of what we do. We would love to help you find your next home.

WHY BUY A HOME FROM US?

We have hundreds of shared ownership homes across the country; we have helped thousands of people find a place to call home. Our team are experienced

industry experts and proud of what we do. We would love to help you find your next home.

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WHAT IS SHARED OWNERSHIP?

If buying 100% of a home is beyond your budget, Help to Buy: Shared Ownership offers you the chance to buy a share in a home (between 25% and 75% of the home’s full market value) and pay a subsidised rent to Accent on the remaining share. In the future, you can buy further shares (usually up to 100%) or sell your share and take any equity with you.

With Shared Ownership there are a variety of new build and pre-owned homes available to suit everyone. Our panel of Financial Advisors can help you arrange a mortgage to pay for your share of the home’s purchase price, or you may be able to fund the purchase through your savings. Shared Ownership properties are normally leasehold until you own 100% (subject to the terms of your lease).

Often the monthly cost of your new home will be cheaper than renting – so why rent when you could buy!

Example costs:

Property Value

Share being purchased

Monthly Mortgage†

Cost of share (via deposit and mortgage)

Monthly Rent

Minimum 5% deposit

Total Monthly Cost*

£195,00045%

£87,750£4,338

£410£246£656

† Mortgage based on a 30 year term with an interest rate of 4.25%. Please note terms/rates will vary subject to your circumstances

*Properties are also subject to a monthly service charge

A recent development of new homes in Lincolnshire

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WHAT ARE THE BENEFITS OF SHARED OWNERSHIP?

• The monthly costs will often be lower than if you were to rent

• Security; a place you can call home• You are on the ladder and own part of your home

rather than paying rent with no return• Your required deposit will be significantly lower

than if you were buying a home outright • The share you purchase will be tailored to your

financial circumstances and should be both affordable and sustainable

• You are often able to purchase up to 100% after your initial purchase. You should check this when reserving your home.

• Shared Ownership is a recognised Government scheme that has helped thousands of people across the country find a place to call home.

AM I ELIGIBLE FOR SHARED OWNERSHIP?

You could buy a home through Help to Buy: Shared Ownership in England if:

• your household income is less than £80,000 a year (or less than £90,000 a year in London)

• You should generally be a first time buyer, i.e. you don’t already own a home. If you do already own, you must be in the process of selling it

• You have no outstanding credit issues (i.e. CCJ’s, defaults).Please note that some homes may also have additional criteria.

• You should not be able to afford to buy a home suitable for your housing needs on the open market.

Your eligibility will be confirmed by completing an application form with the relevant Help to Buy agent. To find out which Help to Buy agent you should register with visit: helptobuy.gov.uk

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A guide to Shared Ownership

THE PROCESSFINDING AND RESERVING A HOME

1. Our dedicated Sales Team are ready to help you find a suitable home. Whether you have already found a home you are interested in or want to find out more about what we have coming up, please contact us on 0345 678 0552 or email sales@accentgroup.org. We will talk you through our available homes, your eligibility and answer any other queries you may have.

2. Complete your affordability assessment with one of the specialist Independent Financial Advisors on our approved panel. They will help you to understand the monthly costs and also confirm to us what share in the home is affordable to you. You will also need to obtain an agreement in principle from your proposed mortgage lender to confirm what funds you are able to borrow.

3. Provide us with your supporting documents so we can consider you for a home.

4. Place your reservation and pay your reservation fee.

5. At this point, you will be issued with a sales memorandum confirming the purchase specific details.

THE SALES PROCESS

1. Instruct your solicitor and pay any upfront fees required. Your solicitor, or conveyancer, will start their works including raising enquiries and requesting searches from relevant parties such as the Local Authority so they can report back to you with their findings in a few weeks time.

2. Instruct your financial advisor to submit your full mortgage application. At this point, your lender will also undertake a valuation survey on the property.

3. Receive your mortgage offer.

4. Sign your shared ownership lease and contract and pay your deposit.

5. Exchange of Contracts – the purchase is now legally binding

6. Legal completion – you receive the keys to your new home!

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Accent Housing

RESERVING YOUR BRAND NEW HOME BEFORE IT IS BUILT

This is often referred to as ‘reserving off plan’.

Many of the new homes we build are available to be reserved before the build is complete. If you reserve your home from plan, please note that you will be expected to proceed with the legal and mortgage process and meet any deadlines set. In many cases, you

will not be able to view the property until after exchange of contracts, and when the home is signed off as safe and build complete. We will provide you with reservation guidance to enable you to decide whether you are comfortable deciding to reserve from plan, as buying a home is a big decision.

You will be provided with an estimate as to when the property will be completed and handed over to us from the builder. However, this is subject to ongoing review and may change. Please rest assured that we will keep you up-to-date throughout the process.

ASSOCIATED COSTS

When calculating the cost of buying your home, you should also allow for the following costs:

Mortgage and valuation feesThese will be paid to the mortgage lender.

Legal Fees These will be paid to your solicitor or conveyancer.

Stamp Duty Land Tax (SDLT) This is a tax paid to the government when property or land is purchased. You should always take advice from your solicitor on SDLT.

Reservation feeThis will be paid to Accent upon reserving your home, and will be deducted from the purchase price on the day of completion.

You will also be responsible for the cost of utilities and other generic household bills.

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Please note: Your home may be repossessed if you do not keep up repayments on your mortgage.

10 A guide to Shared Ownership

WHAT IF THERE IS A PROBLEM WITH MY NEW HOME?

All of our new homes come with a ’defect period’.

For the first 12 or 24 months after Accent have taken handover of the property from the builder (not when you purchase the home) the defect period will cover any physical damage or defect to your new home caused by faulty workmanship or materials. It is important to remember that for something to be classed as a defect it cannot be

caused by misuse by the occupier or general wear and tear.

You will be notified of the defect period remaining on your home at the point of sale.

Any alteration or extension to your home following your purchase may adversely affect your defect period. Some of the appliances that may be present in your home may be

covered separately by warranties directly with the manufacturer. Full details will be provided upon legal completion.

You should report any issues to our Contact Centre who in turn will report to the builder and advise you accordingly. The builder will usually contact you directly for access to rectify any defects.

Accent Housing

WHAT ELSE DO I NEED TO KNOW?

Warranty As well as a defect period, your new home will have a structural warranty. This will be provided by an independent body and normally lasts for 10 or 12 years (from the date the build is signed off by the warranty provider). If you make a claim on the warranty you will be liable for any excess payment; we ask that you let Accent know first.

The Lease All shared ownership properties are leasehold at the point of initial sale. A lease is a legal document detailing both yours and Accents responsibilities – it is similar to a tenancy agreement that you would be given when you rent a property. Your solicitor should go through the lease with you during the sales process – please ask if there is anything you do not understand. The lease issued is a ‘self-repairing’ lease which means that you are responsible for the general upkeep and maintenance of the property.

In the future, if you purchase the rest of the property it may be that you obtain the freehold. However, you should check at the time of reservation and/or via your solicitor whether this would be the case.

Buildings Insurance Accent insures most of its shared ownership homes; the charge for this is included in your service charge.

You are required to obtain your own contents insurance policy.

Service Charges All of our homes will have a monthly service charge that you will need to pay. You will receive a breakdown of the service charge for your home upon reservation. We review the service charge each year and will notify you of any changes in writing.

Service charges cover many things such as buildings insurance, management fees and the upkeep of communal areas.

The Monthly Rent You will pay a monthly rent to Accent. The rent is reviewed annually and you will be notified in writing of any change. The rent review is detailed in your lease so you are aware of how this will be worked out.

Your Property’s Value All our new homes are valued independently by a RICs surveyor (Royal Institute of Chartered Surveyors) and are reviewed regularly. Once you have placed a reservation you have three months to exchange contracts at the price stated.

Repairs You are responsible for the general upkeep of your home whilst you own it. Things such as annual boiler servicing and checking of smoke alarms are your responsibility.

cont…

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12 A guide to Shared Ownership

WHAT ELSE DO I NEED TO KNOW?

Making improvements We hope you enjoy your new home and putting your own stamp on it. Minor alterations such as putting up shelves or decorating do not require permission but you need to ask us if you would like to make major changes such as knocking down an internal wall or adding an extension or conservatory.

Buying more shares This process is referred to as ‘staircasing’. The price you pay for any additional shares is based on the value at the time and will be determined by an independent RICs surveyor. You are responsible for the cost of this and any legal or mortgage fees.

As with any home, the value of your property will rise and fall with general market conditions.

Selling your home We have an in-house team to assist with marketing your home when you decide to sell. Your lease may detail a nomination period that gives Accent the right to market your home and try to find a buyer. If we are unable to find a buyer, you can list your home with an estate agent in the normal way. The team can also help with other aspects of owning your home such as remortgaging.

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SUPPORTING DOCUMENTS

Before a reservation is placed, we will require:

Proof of income: Your latest three months (or twelve weekly) wage slips

If you are self-employed: Your three most recent self-assessments (SA302) or three years’ worth of certifi ed accounts

Proof of your deposit: A copy of a bank or building society statement

A mortgage agreement Most lenders will provide this free of charge. Your inprinciple: fi nancial advisor (FA) will be able to assist with this

Proof of identity: A valid passport or driving license

Proof of address: A recent utility bill

Please note that the above is intended as a guide only. We may at times ask for further documentation to support your application. Your Financial Advisor, bank or building society will also request further documents to support your mortgage application.

APPLYING FOR A MORTGAGE

Accent are unable to offer mortgageor fi nancial advice.

However, we do work with a panel of fi nancial advisors. We ask that all interested parties are assessed by one of the companies on our panel to determine if the home you are enquiring about is affordable to you, before we proceed with the sale.

You are not required to apply for your mortgage through one of the companies below; you can arrange your mortgage from whomever you choose.

www.metrofi nance.co.uk

T: 0800 328 3684E: accent@metrofi nance.co.uk

www.expert-fi nancial.co.uk

T: 01480 718 719 (option 1)E: accent@expert-fi nancial.co.uk

A guide to Shared Ownership

JARGON BUSTERBuildings Insurance: A policy that insures the structure of the building.

FDF/CML (Financial Disclosure of Incentives/Council of Mortgage Lenders) Form: A form that is sent to your mortgage lender and solicitor to detail the financial side of the sale and details any incentives included.

Completion: This is the day the sale goes through and you legally become the shared owner. This date is agreed at the point of exchange of contracts between you and Accent via both solicitors. If the home you are purchasing is not yet built by this time, completion will be ‘on notice’. This means that once the home is finished we will agree a date.

Contents Insurance: Insurance to cover any loss or damage to your possessions within the property.

Contract: A legal agreement between the seller and the buyer of a property or land which binds both parties to complete the transaction.

Conveyancer: The term used for either a solicitor or licensed professional who deals with the legal aspects of buying a property on your behalf.

Conveyancing: The legal process where land or property is transferred from one person or organisation to another.

Covenants: Rules and regulations governing the property or land contained in its title deeds or lease.

Deposit: The down payment on a property, usually a percentage of the value of the share being purchased.

Draft Contract: A preliminary unconfirmed version of the contract.

Equity: The difference between the value of a property and the amount of mortgage owed.

Exchange of Contracts: The point in which you are legally bound to buy your property, although you cannot take possession until you reach completion.

Freehold: Technical word for the ownership of a property, meaning it belongs to the owner without limitation of time.

Help to Buy Agent: An agent appointed by the Government to administer their home ownership schemes.

Homes England: This is the Government Agency that oversees the scheme.

(I)FA – (Independent) Financial Advisor: A specialist trained to provide advice on mortgage products.

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Accent Housing

Lease: The formal written agreement between you and Accent that details the ongoing relationship and each party’s responsibilities.

Leasehold: Technical word for the right of use of a property for an amount of time.

Memorandum of Sale: A document sent by us to you, your solicitor and our solicitor providing details of the sale.

Mortgage Lender: The bank, building society or organisation that lends the money for you to purchase.

Mortgage offer: Once the bank, or building society, have decided they are happy to lend you the money to purchase your share, they will issue a formal mortgage offer detailing all the terms and conditions around your mortgage.

Mortgage (agreement) in Principle: This is a document provided by the IFA, bank or building society to inform you that they will lend you an amount subject to a full mortgage application.

Mortgage Term: The period of time over which (repayment mortgage) or at the end of which the loan is to be repaid.

RICs: The Registered Institute of Chartered Surveyors. An external body of which property valuers are qualified members.

Searches: Your solicitor will carry out some searches during the conveyancing process. This is information requested from the Local Authority and other organisations detailing any relevant information around the property you are purchasing.

Staircasing: Buying further shares in your home. Sometimes this is capped; please ask at the time of reservation.

Stamp Duty: A tax paid by purchasers of property with a value in excess of £125,000. Seek advice from a solicitor when purchasing a shared ownership home with regards to stamp duty tax.

Valuation: The process in which the sales prices is determined.

Valuation Survey: When you apply to a bank or building society for a mortgage, before they will lend you the money, they will often contact the seller to gain access to inspect the property and check they are happy with the value you are due to purchase the property for.

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CONTACT

T: 0345 678 0552 E: sales@accentgroup.org

WE LOOK FORWARD TO WELCOMING YOU TO YOUR NEW HOME, AND SUPPORTING YOU ON YOUR JOURNEY IN WHATEVER WAY WE CAN…