What is Low Cost Home Ownership?
If you would like to buy your own home but cannot afford to do so then Low Cost Home Ownership may be an option for you.
There are a range of affordable housing schemes available which may help you buy a suitable home. Details of these schemes can be found on this website and further information can be obtained by calling the MyPlace Team on 0800 707 6 707.
The types of HomeBuy schemes available are:
- New Build HomeBuy and Resales
- First Time Buyers' Initiative
- Open Market HomeBuy
- Social HomeBuy
- Intermediate Rent
If you are interested in any of these schemes then please complete the MyPlace application form. You can click here to either apply on-line or download an application form from our website, or alternatively please contact the MyPlace Team for an information pack.
Please read the guidance notes before you complete and return the application form. Please click here for a copy of the guidance notes.
Once we have received your completed form and you have been accepted by us, you will be added to our register. You may then be contacted by any Housing Associations or developers who have schemes which may be suitable for you.
If you have any questions please call the MyPlace Team on our FREEPHONE number 0800 707 6 707 or e-mail us on help@search4myplace.co.uk.
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New Build HomeBuy and Resales
Formerly known as ‘shared ownership' or ‘part rent/part buy'. This scheme enables you to buy a share in a property from a Housing Association or private developer which has been especially developed for this scheme, using a mortgage and/or savings. The remaining share is then rented from the Housing Association or private developer at a subsidised rent. The properties are usually offered on a 25% to 75% share basis. If you wish, you can generally buy additional shares in your home at a later date until you own 100%. This is known as ‘staircasing'.
For many New Build HomeBuy properties a local connection criteria to the area may apply. This means that some properties may only be marketed to applicants with a local connection, eg live, work or family connection etc. For rural developments strict local connection criteria will frequently apply.
Please click here if you would like to read more information on New Build HomeBuy.
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First Time Buyers' Initiative (FTBI)
Introducing the First Time Buyers' Initiative
The First Time Buyers' Initiative (FTBI) aims to make more affordable homes available to first time buyers priced out of the housing market. It is part of the Government's HomeBuy low cost home ownership initiative and is available through HomeBuy Agents across England.
FTBI enables aspiring first time buyers, who cannot otherwise afford to buy a new home, to purchase a new property with an affordable mortgage and with Government assistance on a designated FTBI development. The Government then has an entitlement to a share of the future sale proceeds which will be equal to the initial percentage contribution required to assist the buyer. This enables a FTBI buyer to take out an affordable mortgage (minimum 50% of the total purchase price) on which they make repayments.
For the first three years of FTBI home ownership there is nothing to pay on the amount that the Government contributed. After three years, buyers will pay a fee to the Government (through the National HomeBuy Agent) of 1% per annum on the amount the Government funded. This fee will increase each year by a fixed percentage reaching a maximum of 3% after five years in the property.
Because it is more affordable, FTBI is a ‘stepping-stone' to assist buyers into full home ownership.
When owners sell their FTBI home, they will repay the Government's contribution by way of a share of the sale proceeds. So, if the Government initially assisted the purchase with a 25% contribution, the repayment will be 25% of the total value when it is sold.
FTBI homeowners can also choose to reduce the amount payable to the Government at any time by making repayments at the prevailing market value. The minimum additional repayment is 10% of the market value. Repayments will reduce the Government's entitlement to a share of the future sales proceeds and also the fees payable by buyers after three years of ownership.
What is the role of MyPlace, the local HomeBuy Agent?
MyPlace will provide general information on FTBI and how this scheme can help you buy your home. It will work in partnership with house builders, to market particular FTBI developments that they are building in the local area.
MyPlace is responsible for assessing eligibility of people interested in this scheme, as well as guiding the first time buyer through the process of buying a FTBI home.
Where will FTBI homes be available?
FTBI homes are available on designated developments where the house builder has agreed to provide FTBI homes. The first scheme in Dorset is Crest Nicholson's Poole Quarter development in Poole. Please click here to access the Crest Nicholson website.
It is anticipated that further FTBI developments in Dorset, Salisbury and South Somerset will be announced in the future.
Who can apply for the FTBI scheme?
Anyone who cannot afford to buy a suitable home on the open market and is a first time buyer can apply.
Around 50% of the new homes to be made available through the initiative will be for key workers such as nurses, teachers and police officers etc. The remaining homes will be available to those groups identified as priorities by Regional Housing Boards.
For certain groups, a maximum household income of £60,000 will apply. Lower limits may apply to other eligible groups. Priority will be given to people currently living in social/private rented or temporary accommodation.
As well as being in an eligible group, applicants for FTBI homes must be able to demonstrate access to savings or have sufficient funds to cover the costs of buying which will include solicitor's fees, stamp duty, a reservation fee and typically a 5% deposit.
How do buyers find out more and make an application?
First time buyers can contact MyPlace for an application form and to find out more about the availability of FTBI homes in Dorset, Salisbury and South Somerset.
The Government Agency providing the funding and establishing agreements with house builders to make FTBI homes available is English Partnerships. Its address is:
English Partnerships
Corporate Headquarters
110 Buckingham Palace Road
London SW1W 9SA
Please click here to view English Partnerships' website
The HomeBuy Agent promoting FTBI and dealing with applications as part of the Government's HomeBuy programme is:
MyPlace
PO Box 6707
Poole
Dorset BH14 4AY
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
6.0% APR TYPICAL
CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, PLEASE SEEK INDEPENDENT ADVICE.
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Open Market HomeBuy
Two new products, which are backed by the Government, have recently been launched to help eligible applicants buy their own home.
These two new products are part of the Government's Open Market HomeBuy initiative and offer key workers and other first time buyers access to an equity loan of up to 50% of the property's value.
Funding for this scheme is limited and therefore priority may be given to certain categories, eg social tenants, key workers etc.
Through this scheme, applicants can purchase either brand new properties or second hand properties that are being marketed via an estate agent etc.
Ownhome
Ownhome is provided through a partnership between Places for People and The Co-operative Bank. Ownhome gives people the chance to take up to 40% of the value of the property in an equity loan from Places for People.
You will pay nothing for the first five years on the equity loan. After these five years, a low rate would be paid on the sum – starting at a fixed rate of just 1.75% interest per year for the next five years, and then increasing to 3.75% interest per year from year eleven.
The remainder will be funded through a conventional mortgage with The Co-operative Bank. There will be no premium or extra charges on the mortgage and customers can choose from a range of competitive deals including fixed rate and tracker options.
You can apply for Ownhome through MyPlace. Click here to read the Ownhome leaflet and click here to read the Ownhome brochure. You may also wish to obtain further information by contacting Ownhome direct on 0845 607 0110.
MyChoice HomeBuy
MyChoice HomeBuy enables applicants to apply for a mortgage from a range of lenders. The scheme will provide applicants with up to 50% of the value of the property as an equity loan. The remainder will be funded through a conventional mortgage with a Financial Services Authority regulated lender.
The purchasers will pay a low rate of 1.5% per annum on the equity loan funded by The Swaythling Housing Society. The rate paid on the standard mortgage will depend on the deal selected through the mortgage providers.
In the first instance priority will be given to social tenants and key workers, followed by first time buyers, those on local authority waiting lists, and other priority groups.
Due to demand, funding is now only available to those people wishing to purchase a brand new property. In this instance purchasers will pay a low rate of 1.75% per annum on the equity loan funded by The Swaythling Housing Society.
You can apply for MyChoice HomeBuy through MyPlace. To contact MyChoice HomeBuy direct call 02380 628004.
Please click here to view the MyChoice HomeBuy Leaflet
With both products no deposit is required, but is allowed. When the property is sold, the equity loan provider will be entitled to a share of any increase in the value of the property.
STOP PRESS
The Government has agreed to provide a contribution of £1,500 towards the cost of moving home to the first 2,000 recipients of an equity loan from MyChoice HomeBuy or OwnHome in 2008/2009.
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Social HomeBuy
If you are a resident of a Housing Association or Local Authority rented property you may be able to purchase a share in your home.
You can purchase a minimum share of 25% up to the full 100%, at which point you will own the property outright. Eligible applicants will receive a discount on the initial share purchased.
Please contact your landlord if you are interested in buying a share of your rented home, to find out if they are operating this scheme and eligibility criteria.
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Intermediate Rent
This scheme enables you to rent a purpose built property at below the private sector price but above what you would normally pay if you were a Local Authority or Housing Association resident. Properties offered on this basis are only available to key workers.
There are relatively few homes being developed on this basis.
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