What is New Build Homebuy?

New Build Homebuy – formerly known as shared ownership, is a scheme specifically designed to help those who are unable to afford the cost of buying a home outright on the open market.

How does it work?

New Build Homeby works by enabling you to purchase a share in your new home and pay a subsidised rent on the part your don’t own. You will buy your home on a lease which is normally 99 or 125 years for new homes. If you are buying a home from an existing shared owner (a resale) the length of your lease will be the number of years remaining since the original lease was first issued.

Who can apply?

Anyone who is unable to afford a property on the open market can apply. Priority is given to:

• Council and housing association tenants.
• Those already on the councils housing register
• First time buyers who live or work in the area, unable to buy on the open market.

Even if you have owned a home before you may be eligible to apply if:

• You owned a home with a partner and that relationship broke down or your home became unsuitable for your needs.
• You need to move because of job relocation
• You are already a shared owner who needs to move and you fulfil all other criteria.

What should I consider?

In order to determine if you can purchase a share in a property you must consider how much you can afford to borrow by way of a mortgage, you can either:

• Speak to your bank or building society
• Contact an independent financial advisor.

What costs are involved before the sale completes?

If you view a property for sale by Chelmer Housing Partnership and wish to reserve the property of your choice we will ask you for a reservation fee of £250 (this fee is deducted from the final sale price).
Your mortgage lender will want to make sure that the property you are buying is worth the asking price, they will therefore want to carry out a survey on the property. You should allow between £250 and £450 for a Homebuyers report and valuation depending on whether the property is newly built or a resale.
You will also need to instruct a solicitor to act on your behalf. Solicitors’ fees vary; it is always prudent to ask for an estimate before instructing a solicitor.

What are the costs involved once I move in?

The lease between you and Chelmer Housing Partnership will set out your rights and responsibilities as a shared owner. Although you have not bought the property outright, you will have the normal rights and responsibilities of a full owner-occupier. In particular, you will normally be fully responsible for the cost of repair and maintenance to your home.
If you buy a flat (or a house on an estate with a shared area) you will also pay a service charge for the maintenance and upkeep of those common parts. Your building insurance will normally be covered within your service charge.

Other general costs may include;

• Council Tax
• Utilities Bills
• Contents Insurance
• Rent to Chelmer Housing Partnership (on the unsold equity)

Can I buy more shares?
Most leases will state that you can purchase more equity in your home if you wish until you eventually own it outright, this process is called staircasing. You are under no obligation to buy more shares. Please note however, that some leases may only allow you to buy up to a specified percentage of the equity in your home.
As you only pay rent on the share you do not own, the more equity you own, the less rent you pay.
If you decide to purchase more equity we will instruct an independent valuer and you will be responsible for meeting the cost of the this valuation. The price you pay for any additional shares in your home will be based on this valuation.

What if I want to sell?

You may choose to sell your home whenever you like. To ensure your home can be made available to others who are unable to afford a home on the open market, we will for a period of time have the right to find a suitable buyer.
If we are unable to nominate a buyer within the specified time period in your lease you are then free to make your own arrangements to sell your home, although any buyer must be approved by Chelmer Housing Partnership.
If you purchased your home through a Government sponsored key worker scheme, certain conditions may apply.