New Build (Homebuy)
What is New Build Homebuy?
New Build Homebuy was introduced to help people who cannot afford to buy a property outright. Through new Build Homebuy you buy a share of the property and pay rent on the remaining share you do not own. Gradually, you may purchase further shares and eventually own your home outright. (Please note however, some rural schemes or sensitive inner city schemes may not allow you to purchase outright – please check the details before proceeding).
View our FAQs list below to find out more about New Build Homebuy:
Who can buy through the New Build Homebuy scheme?
The scheme is intended for people who cannot afford to buy a suitable home in any other way. They must be in housing need and be unable to afford outright purchase. Priority will normally be given to existing public sector tenants or those on local authority or registered social landlords’ waiting lists.
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Can I buy a New Build Homebuy home with someone else?
Up to four people can become joint owners but all join applications must individually and jointly meet the eligible criteria.
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What does the New Build Homebuy lease entitle me to?
Whether you buy a house or a flat under a shared ownership terms, the registered social landlord will grant you a lease usually for 99 years (unless the property is not brand new in which case the term will be reduced to when the lease was first granted). It will entitle you to live in your home as an owner-occupier. It will also entitle you to buy further shard in the property and sets out how you can do this. It also states how you can sell your property. Other points covered in the lease set out your responsibility for the repairs payment of rent and service charge. Although you have not bought the property outright, you have the normal rights and responsibilities of a full owner-occupier.
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Can I sell my share in the property?
Yes. You must contact the office for full details of how to do this but we will normally require one month in which to nominate a suitable candidate to purchase your property. If after this time we haven’t been able to nominate anyone, you may place your property for sale on the open market either through an estate agent or privately. However, proposed purchasers still have to be assessed by us before you can proceed with any sale.
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Is there any service charge to pay?
Sometimes. Each scheme is different but you will be given full details in the lease. If in doubt, you should speak to your solicitor or legal adviser before proceeding with any purchase.
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Can I make improvements to the property?
Normally, yes you can as long as you ask for written permission first but be aware that you are fully responsible for any work you carry out on the property and that alterations may affect the re-sale value of your property good or bad.
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Will I get the full value of any improvements I make if I sell?
When you decide to sell, the property must be valued by an independent qualified valuer such as a District Valuer and it is that valuation that will decide the worth of your alterations. Don’t forget that everybody has different tastes so adding a conservatory may not get back what you paid for it.
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This is not a definitive guide to New Build Homebuy and is only here to give some guidelines.
For more information contact us, our details are below.