Low cost home ownership

What is HomeBuy?

HomeBuy is a Government-led scheme that can help people to get on to the property ladder or rent at a reduced rate.

What is a HomeBuy Agent and who are Catalyst Housing Group?

The Government has appointed a number of Agents across England to run the scheme. These Agents are professional 'non-profit' organisations (usually Housing Associations) that are specialists in this area. The Council works with Catalyst Housing Group (This link will open in a new window) (opens new window), the government appointed HomeBuy Agent covering the Tandridge area, to promote the HomeBuy scheme and all the available options.
There are three main parts to the HomeBuy programme.

NewBuild HomeBuy

This is also known as 'Part-buy/Part-rent or Shared Ownership. Under this scheme,you can buy a share of a newly built property (from as low as 25%) and then pay a subsidised rent on the portion you don't own. You can then increase the share of the property if you wish. However, this is not compulsory. Catalyst Housing Group can provide you with details of these kind of developments. From time to time properties will also become available as a result of existing owners move on. These are known as 'Re-sale' properties and details of these can also be supplied by Catalyst.

HomeBuy Direct

Under this scheme, launched in April 2009, you can buy a new home in a designated HomeBuy Direct development, with help from the Government and the house builder. This help is in the form of two equally divided interest-only loans. The loans can total up to a maximum of 30% of the total purchase price, therefore requiring the purchaser to raise a minimum 70%. This would be by way of a mortgage plus any deposit, if available. (Note. A deposit may not always be required.)

There are no loan payments for the first five years. At year six you will pay 1.75% 'interest only'. This charge rises annually by an amount in line with the Retail Price Index plus 1%.

You can make part or full repayment of the equity loan after twelve months. The purchaser will always be the legal owner of the property and can sell it on the 'open market', if desired.

First Time Buyers Initiative

This scheme only applies to specific developments and allows first time buyers to fund just 50% of the proposed purchase price. The Government will then fund the remaining share.

For the first three years there is no interest charge on the Government funded portion. After this time, a nominal staggered interest charge is applied. You can repay the loan in instalments of 10% after the first 12 month period. This scheme is now in its final stages and will be replaced by HomeBuy Direct.

Intermediate Rent

This scheme offers properties at 80% (or less) of current market rents and is available through a number of Housing Associations. It is also available through some Key Worker organisations such as NHS Trusts who aim to help staff to settle into their jobs and local community.

Rent to HomeBuy

Under this scheme, commonly referred to as "Try Before You Buy", you can rent a newly built home provided by a Housing Association at a rate that is normally around 80% of the current market rate. Depending on the development, you have the option to convert the rental agreement into shared ownership (part-buy/part-rent) after a period of between 2 to 5 years.

To be eligible for these schemes, you must fit into one of the following criteria and must NOT have a household income in excess of £60,000 per annum:

• First time buyers - This will be subject to qualifying criteria.
• Key workers - As defined by the Home and Communities Agency (HCA). Likely to include those working in the public sector in health, education or community safety - (such as teachers, nurses, social workers and police officers) in areas where high house prices are affecting recruitment and retention.
• Social housing tenants and those on the housing register
• Those who have had a major change in circumstances - Current or previous home owners who are looking for a new property as a result of a major change in their personal circumstances e.g. divorce/separation, victim of domestic violence etc. Subject to approval.
• Other- Those who have previously owned a property, but are not owners at the present time may be eligible to apply.

So if you meet these requirements what should you do now?

1. Join the Tandridge District Council Housing Register (This link will open in a new window)
2. Register with Catalyst Housing Group (This link will open in a new window) by telephone on 0845 601 7729 or complete an online application at www.catalysthomebuy.org.uk (This link will open in a new window). More details about the available options and schemes are available on the website.

For developments where there is high demand, the Council will nominate applicants in priority order where necessary, so it is really important that you keep your Housing Register and Catalyst application up to date if there are any changes to your circumstances

Don't forget
Prospective purchasers are advised to seek their own legal and financial advice. Independent Financial Advisers will give advice and guidance on equity loans, shared-equity, mortgages and repayment criteria.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

For further information please contact Customer Services on 01883 722000 or e-mail customerservices@tandridge.gov.uk

Or write to us at:
Tandridge District Council
8 Station Road East
Oxted RH8 0BT

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