Guide for low cost home ownership



How to find an affordable home to buy in the Kennet District

Shared Ownership

Kennet District Council and the Housing Associations listed on the back cover,have joined together to set up the Kennet Housing Partnership. They are working together to ensure that the housing they own and manage in the Kennet District is accessed by those who have a genuine reason for seeking an affordable home in the area.

The Partnership use a Housing Register for Rented Accommodation, otherwise known as a ‘waiting list’, for customers who are seeking rented housing and a Low Cost Home Ownership Register for those seeking affordable home ownership opportunities. The Register is administered by Kennet District Council.

Kennet District Council has a responsibility to assess where there is a need for housing in the area and what type and size of accommodation is required. The Housing Register helps the Council to assess this need and to work with Housing Associations in planning housing developments.

Listed below, are some of the low cost home ownership schemes available in Kennet.

Shared Ownership

Shared ownership is an alternative to renting and full ownership. With shared ownership you buy a leasehold ‘share’ of your home and pay rent on the rest. It is particularly suitable for people with a regular income who want to buy their own home but cannot afford to do so through conventional methods.

The total monthly costs of the rent and mortgage should be lower than the cost of the mortgage that would be needed to buy 100% of the same home. The exact amount you will need to pay each month will depend on a number of things, such as the price of the property, the size of the share you buy, the rent and the mortgage costs. The larger the share size you buy, the higher your mortgage payments will be, but the less rent you will pay.

The landlord will retain ownership of the remaining share of the property which you do not buy, and you pay rent to them on this share. Later, as you can afford it, you can if you wish increase your own share until you own the whole property outright.

It is a good idea to speak to a bank or building society or financial adviser before applying for shared ownership to find out if you are eligible for a mortgage. You can get an idea of the type of mortgage that would be best for you and how much you may be able to borrow. This will help you to save time if you are offered a property, as priority may be given to someone who already has a mortgage arranged.

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Home buy

Home buy is aimed at people who cannot afford to buy a property outright on the market but could afford 75% without financially over stretching themselves. If you qualify for the scheme, you find a property you wish to buy on the open market, contribute 75% of the purchase price through a mortgage and savings and the housing association lends you the remaining 25%. There is nothing to pay to the housing association whilst you are the owner. When you wish to sell the property you simply pay back the housing association 25% of the new value at the time you sell.

Starter Homes Initiative

The Starter Homes Initiative is a Government backed scheme, which is funded and supervised by the Housing Corporation - the government body responsible for Registered Social Landlords (Housing Associations) in England. The scheme enables qualified Key Workers to buy a property on the open market close to their place of work, which they would otherwise be unable to afford. If you qualify for the scheme, you find a property you wish to buy on the open market, contribute between 60% and 80% of the purchase price through a mortgage and savings and the housing association lends you the remainder. The loan is paid back when you sell the property and is based on the value of the property at that time.

To qualify for the Low Cost Home Ownership Register you must be a housing association tenant living in Kennet or have a genuine reason for seeking affordable accommodation in the Kennet District. You must also satisfy the following conditions:

• You must be 18 years or over
• You must be capable of living independently without support
• You must be unable to buy a home that meets your needs without assistance
• You must not be in rent arrears
• You must not be receiving Housing Benefit or have received it in the last 12   months
• You must not have any outstanding county court judgements

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Owner Occupiers

If you are an owner occupier you will be accepted onto the register if one of the following applies:

• you are threatened with homelessness
• you need a special type of accommodation which is not available to buy
• you cannot afford to maintain your home
• you are overcrowded and cannot afford a larger home on the open market

Armed Forces Service Occupants

If you are living in H.M. Armed Forces Accommodation you will not be able to register for properties more than 12 months before the date of your discharge and only if one of the following applies:

• you came from the district immediately prior to enlisting
• you have a parent, brother, sister or child already living in the area
• you have permanent employment in the district

Existing Housing Association Tenants living in the Kennet District

Preference will normally be given to existing housing association tenants living in Kennet for most low cost home ownership opportunities. Although all applications will be considered on their own merits, customers with a history of rent arrears, or anti-social behaviour may be refused entry to the register for low cost home ownership.

People from Overseas

Some people travelling to the UK to settle cannot be nominated for rehousing by the Local Authority. Those who do not have appropriate immigration status cannot be included on the housing register.

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How to Apply

To register for low cost home ownership you should first fill out an ‘Application Form for the Kennet Housing Register - Low Cost Home Ownership’ which you can get from any of the partners. Please make sure that you complete every question. When you have completed your application return it to the ‘homes@kennet’ office or to any of the other partners’ offices including Kennet District Council, sealed in an envelope, addressed to ‘homes@kennet’ c/o Kennet District Council, Browfort, Bath Road, Devizes, Wiltshire, SN10 2AT.

Your application details will be entered on the Partnership’s computer, and if eligible, you will receive a letter confirming your registration date and telling you what you can bid for by looking out for a particular household type in the advertisements. A registration pack containing more information about this service will also be sent.

If you disagree with any decision about your application you can ask for it to be reviewed. To do this you must write to homes@kennet within 21 days. You will normally get a decision on the review within eight weeks.3
 

Section A – Personal Details

Questions 1-2 About you

Please give your personal details and those of any members of your household who are moving with you so that we can assess the size and type of home you need. Please make it clear if there are people who will be moving with you, who do not live with you now.

Question 3 Medical Problems

Please tell us of any health problems that you may have so that we can assess how urgently you need to move. This information will also tell us whether you need housing that has been specially adapted because of your mobility needs. If you feel that your health, or that of any other member of your household who is moving with you is being affected by your present housing, you should ask ‘homes@kennet’ for a medical assessment form to complete.

Question 4 Key Workers

Occasionally housing associations receive funding for low cost home ownership schemes that give priority to key workers. Please tell us if you are employed by any of the public services.

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Section B – Housing History

Question 1 Returning from Abroad

People who are subject to immigration control within the meaning of the Asylum & Immigration Act 1996 may not qualify to join the Housing Register.

Question 2 Where you have been living during the last 3 years

Please tell us about where you have been living during the last 3 years. This will help us to assess your  housing need and the type of assistance that you are entitled to. Customers with a history of rent arrears or anti-social behaviour with any former landlord may be refused entry to the register. Please tell us whether you have any rent or mortgage arrears and how much they are. To be eligible for low cost home ownership opportunities you must also be able to demonstrate a satisfactory credit rating in order to obtain a mortgage.

Question 1 Choice of area

The information you give about where you want to live in the district helps us plan housing for the future.

Question 2 Local Connection

Due to planning restrictions, a number of vacancies in villages and small towns are made available first to those households that have a local connection to the particular village or town. If you do not advise us now of any local connection that you have, we will be unable to shortlist your application. A member of your household has a local connection to an area if:

• they have permanent employment there (* see below)

• they have been normally resident there, of their own choice, for at least 6 out of the last 12 months or 3
 out of the last 5 years (* see below)

• they have a parent, grandparent, child, brother or sister who have been normally resident there, of their own choice, for at least 6 out of the last 12 months or 3 out of the last 5 years

• there are other special circumstances, for example, a long term need to receive specialist health care, education or other support services that are only available in that area * Please note that a person is not employed in the district if he is serving in the regular armed forces of the Crown. Residence in an area is not of a person’s own choice if he/she is serving in the regular armed forces of the Crown or because he/she is detained under the authority of an Act of Parliament.

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Question 3 Why you want low-cost home ownership

Please use this space to explain in more detail your reasons for wanting low cost home ownership in Kennet. If there is not enough space you can write on a sheet of paper and enclose it with the form.

Section D – Financial Assessment

Questions 1-3

The information we ask for in this section gives us a picture of your income and savings and is a useful indication as to whether you will be able to afford the cost of low cost home ownership. A more thorough financial assessment will be undertaken by the housing association if your application is nominated for a particular vacancy.

Section E – Other Information

Questions 1-3 Declaration

Please read and sign the declaration, then take or send you application to ‘homes@kennet’ or to any of the other Partnership Landlords. Housing Associations are non-profit making or charitable organisations, providing homes for people who may have difficulties finding accommodation in the private market. They can offer anything from flats to family homes, for young and old. Housing Associations receive grants from the Housing Corporation, which is a Government agency, and from the District Council towards the cost of providing housing.

Some Associations only offer housing for rent, others also provide a choice of properties to rent or buy. Anyone can apply for a housing association property, but they generally only rehouse those who are in the greatest need.