Charnwood Borough Council - Leading in Leicestershire

LOW COST HOME OWNERHSIP

If you would like to buy a home but cannot afford to buy one without some help then there are a range of options you may like to consider. The most common is New Build Homebuy (NBHB). This used to be called Shared Ownership.

Who can be considered for low cost home ownership?

To be considered for low cost home ownership you must be in housing need and unable to buy a property without help. Priority is normally given to current council and Housing Association tenants and people on the council's Housing Register. To be considered for low cost home ownership you would have to be able to afford to pay for both the share in the property and the rent, although the rent would be eligible for Housing Benefit. However you must not be able to afford to buy a property on the open market.

How much will low cost home ownership cost?

The costs will obviously depend on the size and cost of the property but if you were to buy a 50% share in a property, the rent you pay on the Housing Association's share is normally about half as much as your mortgage payments.

What happens when a low cost home ownership property is sold?

You may sell your share in a low cost home ownership property at any time and you will receive your share of any increase in value. However if you wish to sell you should inform the Housing Association as the person who buys your property would need to meet the criteria for low cost home ownership themselves. When you sell the property you will receive your share of any increase in the value of the property. (Please remember the value of your home may go down as well as up).

Can I increase my share in the ownership?

Yes you can increase your share by "staircasing" upwards by further share of 25% so if you bought 50% to start with you could increase to 75% and in most cases to 100%.

Can I choose any property I want?

No, the only properties you can buy through low cost home ownership are designated as low cost home ownership. You can no longer buy a property on the open market under a low cost home ownership arrangement – this used to be called DIY shared ownership.

What do I do if I'm interested in low cost home ownership?

For information on the full range of low cost home ownership options, you should contact the HomeBuy agent for Charnwood, EM HomeBuy.

The Housing Needs Team can also provide information on low cost home ownership and can be contacted at: