Affordable Housing - A shared ownership guide to buying
Affordable Housing - calculators, shared ownership
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Becoming a homeowner

What does a shared ownership lease entitle me to?
Whether you buy a house or a flat you will be granted a lease. The lease is normally for around 100 years but the terms can vary. Your solicitors will confirm this with you.

The lease will entitle you to live in your house as an owner-occupier, allow you to buy further shares in your property and sets out how you can do this. It also states that you can sell your property.

Other points covered in the lease set out your responsibility for repair and payment of rent and service charges.

Although you have not bought the property outright you have the same rights and responsibilities as a full owner occupier.

It is your legal adviser’s responsibility to make sure you understand your obligations under the terms of your lease and we strongly urge you to clarify any points you may be unsure of with them.

Can I make improvements or alterations to my home?
If you wish to improve your home you will need consent if the work involves non-structural alteration. You are not normally allowed to make any structural alterations to the property.

If you make significant improvements that affect the value of your home then these will be taken into account when you sell the property so that you will benefit from the increase in the value that your improvements have made.

When you staircase, increase the percentage of your home which you own, any increase in value as a result of your improvements will normally be ignored. However, not all works that you carry out will be improvements for the purposes of the valuation.

What happened if I get into financial difficulties?
The mortgage contract is between you and your bank/building society. If you begin to have financial problems and you cannot pay your mortgage you should let them know as soon as possible. If you do fall behind and cannot agree a solution there is a risk that they may take possession of your home and sell it.

If you fall behind with your rent or service charge it is very important that you get in touch with the Housing association as soon as possible to discuss the options available.

How can I find out more?
To find out more about Shared Ownership, or any other affordable housing scheme, please contact the Mortgage Warehouse Coprporation team on 08456 21 22 00.

Alternatively, visit the Housing Options website at http://www.housingoptions.co.uk for a comprehensive guide.

Re-selling your home
What happens if I want to sell?
You can sell your share at any time but you must let your Housing Association know in writing that you would like to move.

Can I sell it on the open market?
Your lease may say that you have to offer to sell the property back to the Housing Association you purchased from.

If the Housing Association want to buy it back, they will have to pay you the current value. If they do not want to buy, you can either sell the part that you own or buy the remaining share and sell outright.

What if the value of my property changes?
You will benefit from any increase in market values but you must be aware that you may be affected by any fall in values.

Unless you have owned the property outright (i.e. 100%) for at least three months the price you may sell for is restricted by the valuation (the valuation is provided by either the District Valuer or an independent valuer which you are required to pay for).

This condition applies in order to prevent profiteering from Shared Ownership and to ensure that public funds are protected.

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