FAQs

Published: 27 March 2008

1. What is New Build HomeBuy (shared ownership)?

Sometimes also known as part buy/part rent, is a scheme designed to provide affordable home ownership to people with a regular income who want to buy their own home but cannot afford to buy a property outright in the open market. You buy a share of the property with a mortgage, and pay a subsidised rent on the rest.

2. What type of homes do we provide?

Gateway has an ongoing development programme, which provides affordable one, two and three bedroom homes across the London Borough of Tower Hamlets and surrounding areas.

3. Who is New Build HomeBuy (shared ownership) for?

The scheme is designed for first time buyers who cannot afford to buy outright. Instead, it enables you to buy a significant share in a home now - when you need it, at an affordable monthly cost.

4. How are the homes allocated?

To be accepted on to the scheme you must satisfy our sales criteria. Essentially you will need to be an existing resident, or have very strong family connections in the London Borough of Tower Hamlets. See Am I Eligble for more details.

5. What are the benefits of New Build HomeBuy (Shared Ownership)?

Shared Owners have all the benefits of owning their own home straight away but at a price they can afford. People on lower incomes are not excluded from home ownership. There is less financial risk than buying outright. There is flexibility on the initial amount you can buy. It is cheaper than renting privately. You have the security of knowing that you can eventually own your home outright.

6. How much will it all cost?

Buying your first home is one of the biggest financial commitments you will ever undertake. We can break down the costs into two types.

`One off` purchasing costs - For this you will need savings behind you. The amount will depend on the property that you are buying, the solicitors that you use and the mortgage lender you go to. These one off costs include legal fees, stamp duty, mortgage valuation fees and mortgage deposits. You will also need money to pay for the costs of moving home.

Running costs - Once you have moved in you will be responsible for the normal costs associated with home ownership such as:

* Mortgage payments to your lender
* Rent payments to Gateway
* Council Tax to the Local Authority
* Repairs, insurance and service charges
* Heating and lighting, water and telephone. Fittings and furniture
* Mortgage protection insurance.

This list is not exhaustive but covers the main items that you will need to provide for.

7. Can I afford all this?

After reading this you might now be thinking whether you can meet all these commitments from your income. Do not despair - whilst it may all seem rather daunting, we will carefully assess your particular circumstances and advise you at the outset whether we feel you can afford it.

8. Can I buy more of my home later?

After 12 months you are entitled to increase your share by a process known as staircasing. The share that you purchase will be based on the market value at the time. Through this process you can eventually own 100% of the property.

There is no limit on how soon you staircase but you can only do it three times. For example, if you own 50% now, in 2 years time you may buy another 20%, followed in say 5 years by a further 15% and finally the last 15% at some time later. (The time scales and percentages are flexible and up to you).

9. What happens if I want to sell in the future?

If you are still a shared owner, Gateway will help you to sell. The lease contains a right for Gateway to nominate someone else requiring a shared ownership property. This nomination right lasts for 4 weeks.

If we can't find a buyer within this time you can then sell through an estate agent or privately. You will find that we are generally successful in being able to nominate a purchaser and we do not make any charge for this service.

10. Can I buy a bigger home in the future?

We understand that your circumstances may change in the future, causing a need for larger accommodation.

If a suitable home is available we will try to help you move by finding you a purchaser for your existing property and co-ordinating a simultaneous purchase of a new Gateway property.

11. Who is responsible for repairs, decorations and maintenance?

It is best to regard shared ownership as similar to owning a property outright. If you buy a flat, the internal repairs, decoration and household contents insurance are your responsibility.

We will arrange for the maintenance and redecoration of the exterior and communal areas and the buildings insurance. You will share the cost of this with other occupiers in the block, through a service charge. If you buy a house, all repairs are your responsibility, although Gateway will arrange the buildings insurance and charge you the premium once a year.

12. Can I sub-let my home?

No, the lease does not allow it. In exceptional circumstances, such as temporary job relocation, we will consider your request.

13. Can I make improvements or alterations?

If you want to carry out improvements you must seek our written agreement first. We will not allow any works that may affect the structure of the property or diminish the value.

14. Do I need a solicitor?

It is important to seek legal advice when purchasing a property. You should appoint a solicitor who is experienced in dealing with New Build HomeBuy(Shared Ownership); otherwise you may experience serious delays in your purchase.

Gateway has a panel of solicitors who are fully conversant with Gateway and our shared ownership leases.

15. How do I arrange a mortgage?

You will find that most leading Banks and Building Societies will lend on New Build HomeBuy (shared ownership) schemes.

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