Affordable Home Ownership Schemes
There are a number of affordable home
ownership schemes for people who wish to get on the property ladder
but cannot afford to buy a home on the open market. Below are a
number of part-ownership schemes and a brief summary of how they
work:-
Equity Share Loan
An additional loan to top up your mortgage.
The amount you pay back on this extra loan is linked to the value
of the property – so if your property increases in value, the
amount you pay back will increase by the same percentage. The
equity share loan is registered as a second charge against your
property.
FirstBuy and Homebuy Direct
Government HomeBuy schemes in partnership with
private developers. You buy a newly built property with the help of
equity share loans to top up your mortgage, jointly funded by the
developer and the Homes and Communities Agency.
Homebuy
Homebuy is the umbrella term for all current affordable home
ownership schemes, such as HomeBuy Shared Ownership, Homebuy Direct
and Rent to Buy.
Homebuy Shared Ownership
You buy a proportion of a property, usually
through a Registered Provider and pay a subsidised rent on the
portion that you do not own. This scheme was formerly known as New
Build Homebuy.
Rent to Buy
A HomeBuy scheme which allows you to rent the
property first for a period of 3 – 5 years on an intermediate rent.
At the end of the rental period you can choose to buy the property
under HomeBuy Shared Ownership or move on.
For further information and advice please
contact Orbit Homebuy
Agents:
Tel: 03458 50 20 50
