My Choice Homebuy
My Choice Homebuy information
About Social Homebuy Mortgages
A Social HomeBuy Mortgage will allow social housing tenants the opportunity to get onto the property ladder by either buying their current home outright or by entering into a homebuy scheme.
Those who want to enter into the shared ownership social homebuy scheme must do so with the approval of their landlord who will obviously have to take part too. In addition, there is often a discount.
Social HomeBuy Schemes are often of interest to those who do not qualify for the 'Right to Buy' schemes or 'Right to Aquire'.
How does Social HomeBuy work?
The landlord has to firstly agree to offer the Social HomeBuy scheme for the existing tenants or housing association to buy the property and then the tenant usually buys 25% of the property.
The discount that is given is usually between £9K and £16K and is mostly dependent upon location and is payable in proportion to the initial amount purchased. There is a large discount available on the initial purchase, so buyers are encouraged to buy as large a share as they can afford, and then smaller discount will apply as they 'staircase' buy further shares.
If the property is sold in the first 5 years, then the discounts are repayable and at any time of sale the landlord will have the chance to buy the property back at market value or find another buyer.
Who is eligible for the Social HomeBuy Scheme?
Existing tenants of participating housing associations or councils are eligible, but if tenants are facing some sort of legal action then they are not entitled to participate. These infringements could be anti-social behaviour and breaches in their tenancy agreements.
The Government has now launched their latest Home Buy Scheme, 'First Buy'. For more information on the new First Buy Scheme click here
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