New Build HomeBuy
New Build HomeBuy is a shared ownership scheme – you pay a mortgage on the part you own plus rent on the part you don’t own.
In New Build HomeBuy, people purchase their home as a leasehold property on shared ownership terms. The rent that you pay on the share that you don’t own is designed to be affordable.
How the scheme works
You can purchase between 25 and 75 per cent of your home at the outset. When you can afford it, you are able to buy additional shares until you own 100 per cent of your home. This process is known as ‘staircasing’.
When you want to sell the property you can sell the share you own to another household nominated by your landlord or you can staircase to 100 per cent and sell it on the open market. Your landlord also has the right to buy the property back from you in order to offer it to other households who are eligible for low-cost home ownership. Once you have informed your landlord of your decision to sell, they have a fixed period of time in which they have to tell you whether or not they want to buy the property.
When you sell your home, the property is sold at market value and you will benefit from any increase in value that has built up on the share that you own.
Eligibility criteria
New Build HomeBuy is available to existing social housing tenants, people on local authority waiting lists, key workers and those who have a priority need for housing. The scheme is also open to first-time buyers who have a combined household income of up to £60,000. You need to be able to take out a mortgage to pay for the share that you want to purchase.
Lenders
The following table is a list of lenders who currently support New Build Homebuy. The information listed is meant to be a guide only and does not constitute advice. If you are in any doubt of what mortgage is most suitable for your needs then you should seek advice from an Independent Financial advisor.
New Build Homebuy lenders August 2010- PDF (75 KB)
How to apply
Please contact your HomeBuy agent for more information on how to apply for the New Build HomeBuy scheme.
Last updated: 29 July 2010