Wake-up to Shared Equity Ownership

Swathes of people are missing out by not taking advantage of shared ownership schemes, claims the housebuilder, Bellway. Even prior to the latest announcements (2 September) the Government recently extended its affordable homes initiative to all first-time buyers; previously only those working for the public sector could apply. Many people are unaware of this change in the rules and so are missing out on having a home of their own.

“Shared-ownership schemes are open to all first-time buyers with a household income of less than £60,000 and limited savings. Because of this lack of awareness, first-time buyers struggling to source an affordable mortgage are missing the opportunity to buy new low-cost shared ownership homes,” confirms Bellway’s Director of Affordable Homes, Colin Blakey.

The most popular Government scheme is MyChoiceHomebuy. This allows you to raise a 50 percent mortgage with any high street bank or building society; on top of your mortgage you will receive a Government equity loan for up to 50% of the purchase price. Any savings or contribution from family or friends above £10,000 can be used to top up your purchase price without affecting the Government equity loan. There is a low monthly charge for the Government equity loan of 1.75% which will increase by RPI plus 1% annually. Owners can increase their share of the property thereby reducing the Government loan.

MyChoiceHomeBuy is available on selected properties at the following Bellway developments:

Park Central, Gooshays, Harold Hill
Brooklands, Whitchurch Road, Harold Hill

Stamp Duty

As part of the latest package of measures to help home-buyers, a Stamp Duty holiday is to be instigated for a year on properties costing less than £175,000 from this week (3 September). The level at which the 1% purchase tax has to be paid is to be increased from £125,000 giving residential buyers purchasing, for example, a £175,000 property a saving of £1,750.

Bellway has properties under this price threshold at:

Park Central, Gooshays, Harold Hill. Prices from: £153,950
Brooklands, Whitchurch Road, Harold Hill. Prices from: £152,500
Cotton Gardens, Romford. Prices from: £140,000