Eligibility
Am I eligible to purchase a property? The government has set conditions regarding who is eligible to purchase Low Cost properties. The requirements vary per development and may include:-
1. people unable to easily purchase a property on the open market and/or
2. households of low income wanting to get onto the property ladder and/or
3. Social Housing tenants and/or
4. people experiencing a relationship breakdown.
Buying Prudently
Please bear in mind that any purchase would involve buying financial products and that some schemes are operated by commercial organisations. It is your responsibility to decide whether or not a development or product is suitable for you and you may wish to see an independent financial advisor and take your own legal advice. The following subjects need researching before an application to purchase a property is made:
You will need to speak to either an independent advisor or lending institution (bank or building society) about mortgages. Ensure they are aware that you are hoping to purchase a Low Cost property.
A deposit will need to be saved in accordance to the mortgage product involved. Legal costs will be required as well as considerations made regarding Stamp Duty.
If rental costs are involved, these will be advertised by the RSL or developer. On some properties such as apartments, there may also be service charges to cover the costs of ground rent, cleaning of windows, and communal areas, and gardening. This will also contribute to a contingency fund which will go towards the cost of repairs to the building. A detailed breakdown of what items are covered within these costs and the total amount should be provided.
Selling a Low Cost property
If you wish to sell your property you should inform the Registered Social Landlord or Council as the purchaser would need to meet the criteria for Low Cost Home Ownership.
As with any home, the value of properties will change depending on market conditions. When you sell the property, you will receive your share of any increase in the value.
Please contact us for a copy of our guidance booklet on purchasing and selling affordable housing. Call 01775 764514 or email info@sholland.gov.uk
