New Build HomeBuy
What is new Build HomeBuy?
New Build Homebuy (also sometimes known as shared ownership) is a Government-funded scheme that was introduced to help people who can't afford to buy on the open market take their first step on the property ladder.
It is a part-buy, part-rent scheme where you buy an initial share in a property - usually 25% to 75% - and pay rent to Wandle on the share you don't own. Rents are calculated to be affordable. The bigger the share you buy the smaller the amount of rent you will have to pay.
The share you purchase is funded by a mortgage which you must arrange with a bank or building society.
Can I buy more shares of my property or buy 100%?
You can increase your share (staircase) after the first year until you own the property outright. Once you have staircased to 100%, you no longer have to pay Wandle any rent, but you may still have to pay service charges, management fees, building insurance or ground rent.
How does staircasing work?
You can usually staircase up after the first year. The minimum share you can purchase will be specified in the lease but is usually a minimum share of 20%. How much you pay for extra shares will depend on the value of the property - Wandle will ask an independent surveyor to say how much your home is worth. This valuation will be valid for 3 months.
How much does it cost to staircase?
Costs can include valuation fees, legal fees, mortgage arrangement fees, stamp duty (if applicable) as well as any charges by the mortgage lender.
What happens if I want to re-sell?
Once your home has been independently valued Wandle will find someone who qualifies for New Build HomeBuy to purchase your share. Selling your home this way makes sure that affordable homes are available people who need them.
You can find out more about how this scheme works in the Housing Corporation's New Build HomeBuy leaflet.
