Shared ownership and other options

Shared ownership 

Help to Buy Shared Ownership – New Build shared ownership is a part-buy/part-rent scheme that enables the purchaser to buy a percentage of a newly built property, usually from a housing association.

Under this scheme the purchaser normally initially buys between 25% to 75% of the newly built home from the provider. The provider then retains ownership of the unsold share on which a subsidised rent is charged. The rent is normally paid on a monthly basis – as it would if rented from a private landlord. The combined monthly cost of rent and mortgage will usually be less than buying the property outright. 

This scheme is especially appealing to individuals who are unable to:

  • raise a sufficient deposit to allow a mortgage to be approved
  • obtain an adequate mortgage approval to purchase a property outright even when a ‘healthy’ deposit is available.

Coming soon

10 one and two bedroom apartments for sale on shared ownership at the former BT site, Langley Road, Slough.

Staircasing

Staircasing is the term used when the ‘shared owner’ can purchase further shares in the property (normally at a minimum of 10%) if and when he/she can afford and desires to do so, until the property is owned outright (subject to terms and conditions).

Resales

Resales are shared ownership homes that become available when existing ‘shared owners’ wish to sell their stake in the property they currently own. This is normally as a result of them moving up the property ladder due to a change in circumstances.

The share that can be purchased and the rent payable will differ from one property to another, as a result of differences in the percentage initially purchased and any staircasing activity that has occurred.  

Available resales can be found on housing association websites and on the Help to Buy South website. Some housing associations are also using external agencies to advertise resale properties and you may, on occasions, receive information on resales from them.

Help to Buy

Help to Buy is the latest home-ownership scheme, backed by the government and is designed to assist buyers who are struggling to buy a property. You do not have to be a first time buyer to be considered for this scheme and there is no upper income cap.

Help to Buy equity loan

You will need to buy a newly built home from a participating registered developer (builder). The government will give you an equity loan of up to 20% of the full value of the new home. The remaining purchase price of at least 80% will need to be funded by a mortgage (including a 5% deposit). There is no interest to pay on this equity loan for the first five years. An interest charge is payable from year six onwards.

What to do next:

Applicants should contact Radian (Local HomeBuy Agent) on 0800 456 11 88 or visit the Help to Buy South website.

Intermediate Rent

Intermediate rent provides a short term tenancy at 80% of typical market rates. In most cases the initial rental period is for six months and the person’s ongoing need for the property may be reviewed on an ongoing basis. Under some circumstances, at a later date, tenants may have the option to buy a share of the property by converting the tenure to Shared Ownership.

There is currently one scheme in Slough at Sonning Court, Farnburn Avenue. These are two bed apartments and the rents are £659 and £721 per calendar month inclusive of service charges. The properties are carpeted and have a fitted cooker and hob. For more information and availability please email home-reading@homegroup.org.uk

Intermediate Rent scheme for keyworkers

Slough has one dedicated Intermediate Rent scheme for keyworkers. It is located at Regional House, High Street, Slough and you can contact A2 Dominion at for further information and availability.

Social Homebuy

This scheme allows some housing association or local authority tenants to buy their current home either outright or on a part-buy/part-rent basis with the benefit of a discount. To do so, their landlord must have decided to take part in the scheme (One Housing Group is the only landlord taking part in this scheme in Slough). This is likely to be of interest to tenants who do not qualify for the Right to Buy or Right to Acquire or who are not currently in a position to buy their home outright. You will need to contact your landlord for further details.