Sharing in a shared ownership home

For first time buyers keen to gain a foothold in the property market, sharing provides the perfect answer. That is the view of Katy Dines (21) who has recently moved into Bellway’s Prospectus* development in Beaulieu Park, Chelmsford. She is not only buying into a Shared Ownership scheme but is sharing the burden by buying on a 50:50 basis with a friend.

Katy, who had been living at home with her father, joined Bellway as a Sales Negotiator in November 2007. Previously, she was working for a furniture company where she met her new house-mate, Joanna Westall (24), who still works at the same Chelmsford-based furniture company.

Katy and Joanna moved into their new Beaulieu Park home in February 2008. They were attracted by the opportunity of owning 50 per cent share in a stylish new property for under £900 a month. The scheme has meant that buying your own home is therefore very much within the grasp of those – like Katy and Joanna – who would otherwise struggle to own a first home.

Current schemes to help first time buyers are available across a number of Bellway developments including MyChoiceHomeBuy, a scheme, which is part-funded by the Government, and offers the contribution of up to as much as 50% or as little as 15% of the purchase price of a new home. MyChoiceHomeBuy has been designed to offer a flexible and simple path for potential home buyers with a combined household income ranging from £20,000 to £60,000 to buy their own home. There is a low monthly fee of 1.75% payable on the equity bought with MyChoiceHomeBuy for the first year. Annual increases on this fee are capped at RPI plus 1%.

Another scheme is First Time Buyers Initiative (FTBI) available at Radford Park in Basildon. Visitors to the site can meet Katy in her place of work!

FTBI makes more affordable homes available to first time buyers trying to get a foot on the housing ladder. It is part of the Government’s “HomeBuy” low cost home ownership drive.

FTBI enables aspiring first time buyers who cannot otherwise afford to buy a home outright to purchase through an affordable mortgage, and with Government assistance, a new home on a designated FTBI development scheme. The Government then has an entitlement to a future share of the property’s sale proceeds, which means hard-pressed buyers can enjoy the benefits of home ownership but on a more affordable basis.

The innovative scheme will mean that first-time buyers will be able to apply for between 15% and 50% government assistance towards the purchase of their new home. During the first three years there is nothing to pay on the amount that English Partnerships has contributed. After three years, buyers will pay a fee of 1% per annum, increasing to a maximum of 3% after five years.

Alternatively Bellway has the popular Opening Doors scheme which enables buyers to defer 25% of the value of the property for 10 years and still retain 100% ownership without any fees or rental payments. It is specifically designed to reduce by a quarter the cost of financing a new home.

New home buyers particularly first-time buyers should also look for mortgage subsidies, such schemes make the early years of home ownership that little bit easier.

Sales Director at Bellway Essex, Karen Coulson, said: “These initiatives offer the perfect opportunity for first-time buyers who are struggling to get a foot on the housing ladder.

First time buyers should contact 0845 602 6995 for further information on the FTBI scheme at Radford Park, Basildon, whilst MyChoiceHomeBuy is available on selected properties at the following Bellway developments:

- Clarendon Gate, Colchester
- The Edge, Bocking
- Prospectus, Chelmsford
- Medici, Ilford
- Uplands, Stowmarket
- South Quarter, Norwich
- Aspire, Chelmsford
- Radford Park, Laindon
- Priory Court, Colchester

To download a brochure visit Bellway.co.uk.

*Shared ownership plots at Prospectus have now all sold.