If you are unable to buy a property outright on the open market, then shared ownership is the ideal solution for you. Shared ownership is a part buy, part rent scheme, which enables purchasers to buy a home in stages. Purchasers can buy an initial share between 25% and 75% of the value of the property and pay a subsidised rent on the remaining value of the property. Gross household income must not exceed £90,000 per annum for all size properties.
We try to be as flexible as possible with regards to the initial share purchased, but this may be as much as 50% of the market value at some of our developments.
Most schemes are sold off plan. When buying off plan, you will be provided with the following information:
- A marketing brochure
- Floor plans
- Price list
- Service charge information with full breakdown
You must attend a launch event if you are considering buying a property through Newlon Housing Trust. At the event you will have the opportunity to speak to an Independent Financial Adviser. There will also be Solicitors on hand to answer any questions about the conveyancing process.
Unlike buying an existing property you won’t be able to see it until you have committed yourself to paying for it so this approach may not be for everyone. There are however many advantages, a brand new home with the purchase price set at “todays” value and time to plan your move. You will be provided with “estimated” dates for the development to be completed. As with all new developments your property may be finished earlier or later than this date.
It is not unusual for things within the construction programme to be delayed that are outside of our control. It is important that you are aware of this and build this into your plans – for example, if you are in rental accommodation, do not hand your notice in until you have a confirmed completion date. In addition advise your mortgage lender of any changes.
A service charge will also be payable to cover the cost of communal maintenance. The service charge payable remains the same whatever percentage you own of your home and continues to be payable should you purchase your home outright where possible.
You will need to have sufficient savings to cover the initial cost of home ownership: legal fees and stamp duty for example. You will need to be able to meet the costs of rent, mortgage, service charges and other associated outgoings. If you can afford to buy a suitable property outright, we will not be able to help you as shared ownership aims to assist those that are not able to buy a property outright. As your income increases, you can buy further shares of your home until you own 100% of the value and no longer share the ownership with us. The greater the percentage you own, the lower the percentage on which you pay rent. However, if you do not wish to buy more shares in the property, you do not have to. The more you own, the less you pay in rent. And, if you can buy your home outright in the future, then no rent will be payable. More information is available in our leaseholds services section.
Once you have purchased equity in your home, you are free to sell any time you choose. When you decide to sell we retain the right, for a short period, to nominate a purchaser to buy your home. This is to ensure that others unable to buy on the open market have the opportunity to purchase a home of their own. A fee is charged for this service but it is considerably less than you would pay an Estate Agent. More information is available in our leasehold services section.
We operate in the London Boroughs of Islington, Hackney, Tower Hamlets, Waltham Forest, Redbridge, Enfield and Haringey. First Steps is the gateway to all affordable housing in London. If you can’t afford to buy your own home or rent a good quality home on the open market then we can help you.
If you wish to apply for shared ownership you can register as a user for the Newlon Home Ownership Website. This will enable to you apply for Shared Ownership so we can confirm that you are eligible. You can express your interest in a particular home or development during this process. As a registered user you can save your progress as you complete each section so you can come back to it later. Please allow approximately 20 minutes to complete the application form.
Apply for Shared Ownership Here