Gloucester Mortgage Centre

>>Shared Ownership


		Introduction With the Government’s emphasis on social housing, shared ownership has been introduced as part of the Low Cost Home Ownership programme. Central to this programme is provision of affordable low cost housing. The scheme is operated by Registered Social Landlords (RSL's) and provides homes for people in housing need who cannot afford to buy a home outright. The Shared Ownership Market The social housing market is vibrant and thriving, considering: More than £28bn of private funding has been committed to Social Housing in the UK in the last 14 years. Almost 80% has come from mortgage lenders (source:Council of Mortgagee Lenders) In 2001 there were around 78,000 shared ownership properties in England (source:Council of Mortgagee Lenders) Over the next 3 years The Housing Corporation plans to invest around £3bn to provide funding to build and renovate homes for low cost home ownership. This money will allow RSL's to provide around 85,000 new homes (source:Council of Mortgagee Lenders) Shared Ownership In Practice Since early 2002, non-conforming lenders offer products that cater for shared ownership home buyers. Gloucester Mortgage Centre has access to a shared ownership panel giving you unique access to this growing market. Who can buy shared ownership homes? Priority will normally be given to existing public sector tenants or those on local authority or RSL's waiting lists. What can they buy? Shared ownership homes may be new or renovated flats or houses that are sold by RSL's. Applicants can buy a share of a property and pay rent on the remaining share. What share of the property can they buy? The applicant can usually purchase a minimum of a 25% share.They will rent the remainder of the share from the RSL. The monthly rent due to the RSL will be a proportion of the total rent the property would fetch based on the proportion of the share being rented. The maximum purchase share is normally 75%. Our panel requires that the Lease contains 100% staircasing rights which means that the applicant can purchase further shares up to 100% of the property at a later date. How many applicants can purchase one property? Up to 4 people can become joint owners but all joint applicants must individually and jointly meet the eligibility criteria. Who is responsible for the property? When the applicant purchases a shared ownership property the RSL will grant a Lease for the rental share. This will set out the rights and responsibilities of the applicant. Although the applicant is not buying the property outright they will have the normal rights and responsibilities of a full owner-occupier. The applicant will be responsible for all repairs both internally and externally. The RSL will insure the structure of the property and the applicant will have to pay a small management charge to cover this. If the property is a flat then the applicant is only responsible for internal repairs. The applicant in this situation will pay a service charge. Can the applicant sell the property? The applicant can sell the property at any time by either selling just their share or purchasing the remaining shares and selling the property on the open market. Mortgage Lenders will take a first charge on the property and this is protected by the Mortgagee Protection Clause which must be contained within the Lease. Remortgage facility This now allows a facility for applicants to remortgage. This is ideal for customers who currently have a mortgage from a high street lender with whom they are unable to remortgage. The permitted purposes of a remortgage are: To purchase another share To enable the Leaseholder to comply with the covenants of their Lease (eg. to carryout repairs or pay off arrears to the Landlord) To enable one joint Leaseholder to buy out the interest of the other joint Leaseholder For further information, simply contact Gloucester Mortgage Centre by telephone , by online enquiry or by email The interest rate on this type of product may well be higher than mainstream mortgage rates due to the risk that they represent.
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	THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE. The overall cost for comparison is 8.7% APR. The actual rate will depend upon your circumstances. Ask us for a personalised illustration. A fee may be payable, depending upon your circumstances, on completion of your mortgage, typically 1.0% of the loan amount. - Legal Info - Privacy Policy - Accessibility - The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. The Financial Services Authority does not regulate some aspects of Buy to Let mortgages or overseas mortgages or overseas property.

	Gloucester Mortgage Centre Limited is authorised and regulated by the Financial Services Authority. Registered office: 45 Brunswick Road, Gloucester. GL1 1JS. Registered in England No 4213181