New build homebuy schemes

What is “New Build HomeBuy”.

New Build Homebuy is a part own part rent development of new build properties. It has been introduced to help people who cannot afford to buy a home outright or may not be able to afford the full mortgage repayments or the deposit on open-market accommodation.

Am I eligible for the New Build Homebuy scheme?

New Build properties are offered on certain schemes in certain areas. You need to be able to raise a mortgage or have savings and / or a mortgage to allow you to purchase a share of the property.

You will pay a reduced rent on the remaining share to the housing association that owns the rest of the equity (charges for communal services e.g. gardening for communal areas, maintenance of door entry systems for flats etc - known as ‘service charges’ - may also be due).

What is the proportion of the property that I am required to purchase?

The minimum share you may purchase is 25% and the maximum is 75%, however most shares generally tend to be around 40%.

In the future, if your finances allow and you wish to, you may purchase additional shares (at the prevailing market value) until ultimately you own 100%. This is known as ‘stair-casing’.

What if I want to sell the property?

If you want to sell your property, you should inform the housing association landlord who may re-purchase the property at market value or nominate another household to purchase your share. Alternatively you can staircase to 100% and sell your property in the usual way.

Lea Valley Homes

Lea Valley Homes, which is a part of Aldwyck Housing Association administers the key worker schemes and new build homebuy schemes (formerly known as shared ownership) in the Hertsmere area. If you are interested in registering for either of these schemes or would like further information then you should visit the Lea Valley Homes website.

• Next [page 2]