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Snugg Homes Shared Ownership Guide
www.snugghomes.co.uk
What is Shared Ownership? If you can’t quite afford the mortgage on 100% of a home, Shared Ownership offers you the chance to buy a share of your home (initially between 10% and 75% of the home’s value) and pay rent on the remaining share. Later on, you can even buy further shares or purchase your property outright. The process of buying further shares is called stair-casing, meaning as you buy more shares you pay less rent. However, in some rural areas, staircasing can sometimes be restricted. You will need to take out a mortgage to pay for your share of the home’s purchase price, or fund this through your savings. Shared Ownership properties are always leasehold, meaning you own the property on a lease, typically between 250 – 999 years. If you buy your final share through stair-casing, the freehold (the property and the land it sits on) can be transferred to you. Please note, there is an administration cost for this service.
Are you eligible?
Currently a home owner?
You could buy a home through Shared Ownership in England if:
Shared Ownership is ideal for people wishing to down-size or for those whose circumstances have changed. If you are currently a homeowner, you will need to have an agreed sale on your property and provide proof of sale before your application will be considered.
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Your household earns £80,000 a year or less (£90,000 in London).
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You are a first-time buyer, you used to own a home or have now sold your property and can’t afford to buy one now without assistance.
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You are an existing Shared Owner looking to move.
Only military personnel will be given priority over other groups through government funded Shared Ownership schemes. However, councils with their own Shared Ownership homebuilding programmes may have some priority groups, based on local housing needs.
If you can afford to buy the property outright without government assistance, you will not be eligible.
How much will it cost? You will need a minimum level of income/savings depending on the value of the home you want to buy. Some of the services you will need to pay for during the sales process include: •
Reservation fee to hold the property
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Mortgage valuation and survey
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Financial advisor
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Legal fees and searches
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Deposit for your mortgage
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Moving costs
What are the monthly costs? Every month you will need to make the following payments: •
Your mortgage repayment to your lender.
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Your rent to Jigsaw Homes Group.
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A service charge and management fee for the services you receive.
In addition to the above monthly costs, you will also have utility and council tax bills.
Applying for one of our homes?
Reserving your dream home
Once you have found the right property on our website you will need to complete an application form. This can be found on our website, or you can use the following link: https:// snugghomes.co.uk/application-form/
Once your financial assessment has been approved, you will be able to reserve your home.You will need to pay a refundable deposit of £350 (which is deducted from the total purchase price on legal completion). Then, you will sign and return our reservation agreement and confirm that you have read and understood the key information documents.
As part of the approval process, you will be asked to complete a Stage One Financial Assessment (SOA), which is undertaken by our external partners Metro Finance. If you successfully pass the SOA, you will be placed on our waiting list. Allocations are undertaken on a first come first served basis and take into account any priorities for the scheme. Once you have been allocated a property, it will be classed as ‘on hold’ for seven days while you complete the second stage of your assessment. There is no cost to a property being placed on hold.You will then be asked to supply the following documentation but please note these are a minimum requirement. •
3 months wage slips/most recent P60
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Proof of savings you may have
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Photographic ID (Proof of address, recent utility bill etc.)
Once you have reserved a property, this will be taken off the market and placed under offer while you go through the conveyancing process with your chosen solicitor.
Can I view a house in person?
Exchange of contracts
Yes, we can arrange a physical viewing of all homes that have been built before you proceed with your reservation (this is subject to the application, affordability criteria and assessments).
Around eight weeks after reservation, contracts will be exchanged but this is subject to legal and mortgage arrangements being in place. The balance of the deposit is normally paid at this stage and the whole transaction becomes legally binding.
For homes that are reserved off plan (meaning a home that is not yet complete and still in the process of being built) we will organise viewings as soon as safe access has been granted. For any viewing queries, please contact the Snugg Homes Team.
Exchange and completion can be simultaneous or exchange with a fixed completion date up to 14 days. If the exchange does not take place on the agreed date, the property can be put back onto the open market.
Mortgage & legal advice
Completing the sale
If you need to obtain a mortgage to buy your home then you will need to speak to an Independent Financial Advisor (IFA), bank or building society. To buy a home, you will need to appoint a solicitor to act on your behalf.
The final step of the buying process is the legal completion. This is when your lender releases the funds to pay for your home at your solicitor’s request.
The solicitor will handle the conveyance for you (transferring the title to you legally), explain the terms of your lease and deal with the seller’s solicitor on your behalf. The solicitor will also check contract documents and carry out legal searches.
On the day of completion, a Property Sales Coordinator will attend the property, take meter readings, then leave the keys and a handover pack. Once legal completion has taken place, you will receive the code to the key safe for you to collect your keys to your new home. And that’s it, you are now the proud owner of your new home. Congratulations!
Contact us t. 01942 267 819 e. sales@snugghomes.co.uk w. www.snugghomes.co.uk @SnuggHomes
Registered Office: Snugg Homes Ltd,Turner House, 56 King Street, Leigh, Greater Manchester, WN7 4LJ Snugg Homes is the trading name of Snugg Properties Ltd (Part of Jigsaw Homes Group).All rights reserved.