Not everyone is lucky enough to have savings that will be able to cover the cost of buying a home, even a share in one, so lots of people have to borrow the money to finance the purchase. There are lots of lenders out there offering lots of different mortgages for lots of different interest rates and terms so we require you to go to The Mortgage People (TMP) in the first instance as they have a vast knowledge of the Shared Ownership market and they are able to carry out the financial assessment and gather information on our behalf.
How much you can borrow and how much deposit you will have to pay will depend entirely on your financial circumstances and those of your lender. TMP will want to go through all of your finances, they will need to know about your income and outgoings, in detail so have as much information ready as you can about how much you earn and how much you pay out and have remaining to pay in loans, credit cards, car payments – even include what you spend on groceries every month. The more specific you can be the quicker the whole process will be.
The first step will be TMP issuing Decision in Principal (DIP) or an Agreement in Principal (AIP) - a note that tells us that, depending on all the information being correct, someone is willing to lend the money to you for that property. Once this has been provided you are free to go to whatever mortgage provider / adviser you choose or stay with TMP and they will see you through the whole process.
Then you will go through the full process of application where the lender will require all the proof of your income and outgoings. After that you will receive your mortgage offer, you will need to read this carefully and sign to accept, this offer will also be sent to us to agree. The mortgage money will be paid direct to your solicitor, so you don’t have to worry about handling lots of money. Always remember though, if you do not keep up payments on your mortgage, you could lose your home.
As a Shared Owner you are entitled to buy more of your home after 12 months have passed since you bought the property. This is known as Staircasing and in most cases you will be able to purchase shared up to the point where you own 100% of your home.
The process starts with an independent valuation as a condition of the lease - the value of your home may have changed so it is important to get the value right or you could be paying too much for your shares. Then you will go through a similar financial check and conveyancing process as before. The valuation and conveyancing process (solicitors) will cost you money so we always recommend that you buy as large an additional share as you are able to afford.
Your rent will be adjusted to reflect the lower percentage that we own - it will go down! And you continue to live in your home as before.
And that, in a nutshell, is Staircasing
As a Shared Owner you are entitled to sell your share of the property at any time you choose.
We will have six to eight weeks to sell the property for you, under the terms of your lease, this gives us a chance to find a buyer who is in need of affordable housing. After this time, in most cases and if we haven’t found you a buyer, you will be able to advertise with an Estate Agent. The value you sell your home at will depend on an independent valuation so you will be selling your home and the shares you own at the current market value.
Email: info@cornwallhousing.org.uk
Telephone: 0300 1234 161
