Shared Ownership
Are you looking to get onto the property ladder, but can’t quite afford it? We can help.
What is Shared Ownership?
Shared Ownership is a scheme offered by housing associations such as Ongo to help people to buy their own home. The initial share you buy is usually between 25% and 75% of the full property price and is tailored around you and your circumstances. Your deposit is usually much less as you only need a mortgage on the share you buy. Rent is then paid on the remaining percentage of the house. Find out more from Lesley, our Homes & Property Manager, below.
Things you’ll need to know
There are certain criteria which must be met to qualify for a Shared Ownership in Scunthorpe or elsewhere. You must:
- Have a gross household income of less than £80,000
- Be aged 18 or over
- Be in current employment
- Have a good credit history
- Have savings or access to approximately £1,500 (this does not include the value of the deposit required for a mortgage) and
- Understand that any property you currently own in the UK or abroad will need to be sold
In order to be considered for shared homes, you cannot be in a position to afford to buy a property at 100% value on the open market. Applicants will also be assessed based on their level of housing need as well as an affordability assessment. Certain shared ownership schemes may require a local or working connection.
For more information about whether you’d be eligible to buy a property on the shared ownership scheme please complete the below contact form.
Buying a home can be complicated, time consuming and it is likely to be the single biggest financial commitment you will ever make. But, there is nothing quite like the moment when you receive the keys and move in to your own new home.
Once you have been approved for your shared home eligibility and can afford to buy a share of the property and the rent and services charges, you will then need to pay what is called a ‘Reservation Fee’. You will be sent an offer letter that will detail just what timescales the process will take, this will be outline each step and when they need to be completed by.
We will provide you with great customer service aftercare giving you all the details of the team that can help you with any queries or problems you may come across following your initial move into your property.
Each application for shared ownership & homes in Scunthorpe and surrounding areas will be assessed by Ongo Homes individually, but here are details of the criteria you have to meet to be considered for the scheme:
- Gross household income of less than £80,000
- Aged 18 or over
- In current employment
- Have a good credit history
- Have savings of, or access to, approximately £1,500 to cover the cost of buying a home (this does not include the value of the deposit required for a mortgage)
- Understand that any property you currently own in the UK or abroad will need to be sold
In order to be considered for shared houses in Scunthorpe and elsewhere, you cannot be in a position to afford to buy a property at 100% value on the open market. Applicants will also be assessed based on their level of housing need as well as an affordability assessment.
Ongo Homes will verify that:
- You cannot afford to buy a home outright on the open market that would meet your housing need
- Have sufficient savings, or access to funds to meet the purchase costs associated with buying a shared home
- You have a good credit history
- You are able to afford the total monthly outgoings associated with the purchase of a shared ownership for sale for your reasonable needs.
Applicants will need to provide:
- Evidence of salary by providing three most recent wage slips and/or bank statements
- Proof of savings that meet the costs associated with the purchase
- Proof of current residency
- Proof of identity
Your application will be rejected if you:
- Fail to meet the affordability criteria
- Are an un discharged bankrupt or have unsatisfied County Court Judgements
- Are reliant upon guarantors to support a mortgage
- Can comfortably afford to buy the property at 100% open market value
Properties for sale
11 Blackbird Close, Waltham , Grimsby, DN37 0FX– SOLD
12 Blackbird Close, Waltham, Grimsby, DN37 0FX – SOLD
5 Bowfell Gardens, Scartho, Grimsby, DN33 2EQ – SOLD
7 Bowfell Gardens, Scartho, Grimsby, DN33 2EQ – SOLD
25 Bowfell Gardens, Scartho, Grimsby, DN33 2EQ – SOLD
27 Bowfell Gardens, Scartho, Grimsby, DN33 2EQ – SOLD
19 Garcia Road, Tetney, DN36 5FW – SOLD
8 Clyburn Close, Tetney, DN36 5FW – SSTC
60 Newball Cresent, Lincoln, LN2 4ZU
58 Newball Cresent, Lincoln, LN2 4ZU
72 Newball Cresent, Lincoln, LN2 4ZU
66 Newball Cresent, Lincoln, LN2 4ZU
Useful information
For Shared Ownership Schemes only, we will process all applications on a first come first served basis after any priority groups listed in the Capital Funding Guide and any local authority conditions have been met. Eligibility will be determined in accordance with the Capital Funding Guide.
Purchasers will be referred to our nominated affordability assessors who will carry out affordability checks, in line with the new Homes England affordability model.
They will help to complete a budget planner to confirm affordability and will provide you with mortgage options. Ongo Homes are not permitted to provide mortgage advice and will accept our nominated assessor’s decision as final.
Before you start
Buying and selling your home can be an exciting and emotional affair. We hope to aid you through to a successful resale. If you are looking to buy another home, we advise you not to commit to a purchase until you have found a buyer for your current home. You can find all the initial paperwork you will need to start the resale process in this guide.
Resale fee
Your lease gives Ongo the right to find a buyer for your house during the nomination period. The cost of your resale fee can be found in your lease and is payable if we find a buyer for your property. The fee is normally located either in section 3.19 or 3.20 of your lease.
In practice, we will appoint the estate agent who will handle the resale on our behalf.
You will have to pay the estate agent fees as well as the solicitors/legal fees. Once we appoint an estate agent, we’ll give them your contact details so they can contact you to arrange a property visit and list your home.
If we don’t sell your home within the nomination period, you can sell it on the open market.
Checklist to get your property on the market
- Contact a surveyor to get a valuation carried out.
- Receive the valuation report from the surveyor.
- Once you have your report, complete the resale form at the end of this guide.
Step one: Valuation
You need a written valuation report from an independent RICS surveyor. RICS is the Royal Institute of Chartered Surveyors. You should book the survey as soon as you are ready to get in touch with us to sell. You can find a local surveyor on https://www.rics.org/
- Your valuation is valid for three months from the date your property is inspected.
- If you haven’t found a buyer and exchanged contracts on the sale before your valuation expires, you will need a valuation update. It is your responsibility to make sure your valuation is up to date.
- You pay your appointed surveyor directly and they send the report to you.
- The surveyor must be RICS accredited.
- The surveyor must be independent of an estate agent.
- If your property is a flat, the valuation report should be based on the open market value of the current leasehold interest of your property and should include the current unexpired lease term.
- If your property is a house, the valuation report should be based on the open market value of the leasehold interest and include the unexpired lease term. The freehold value must also be included.
- The surveyor must not be related or known to you.
- Valuations carried out for bank or mortgage purposes are not acceptable.
- Ongo will require a copy of the valuation report; the date and duration of validity must be noted in the report.
- The sale price is based on the figure contained within the valuation report and cannot be negotiated.
Shared Ownership Homes with a low lease term.
Before you instruct a surveyor, please ensure you check your lease to establish the number of years remaining on your lease. If you need help with this, please call us on 01724 279900 and we will be happy to provide some assistance.
Step two: Tell us you want to go ahead
Once you have decided you would like to go ahead with your sale, send us the following items:
- Valuation report
- Resale form
You can email the documents to: homeownership@ongo.co.uk or post them to:
Ongo House, 26-30 High Street, DN15 6AT.
We will contact you on receipt of your completed form to give you an update on the next steps.
Step three: Estate agent
Once we have received your valuation report and the resale form, we will appoint an estate agent to handle the resale on our behalf. When your property has been marketed, all enquiries will be managed by the estate agent appointed by Ongo.
Step four: Eligible buyers
All potential buyers will have to be assessed by the estate agent appointed for the resale according to shared ownership criteria. You can find more about the criteria on:
https://www.gov.uk/shared-ownership-scheme/who-can-apply
They will also have to go through a financial assessment with TMP. You can find more information about TMP on:
Step five: Conveyance process
Once the buyer is found and we have received the application form from the estate agent as well as the financial sign-off from TMP, we will email the estate agent to let them know if the buyer is accepted by Ongo for the resale. We will also ask the estate agent to provide us with a Memorandum of Sale which will also have to be sent to solicitors.
You will have to appoint a solicitor for the resale and pay their fees.
Your buyer’s solicitor will raise any queries with your solicitor about your home. The number of queries raised can vary from solicitor to solicitor, which will affect the length of time the sale takes to complete.
If you are purchasing another property and are involved in a chain, please make sure both we and your purchaser are aware of the deadlines you are working to and please contact your solicitor on a regular basis for a progress report on the sale.
Once your buyer’s mortgage offer is issued and we have approved the offer, both you and the buyer will need to arrange to sign the legal documents required to complete the transaction. Once this is done, an exchange of contracts can take place, and a completion date can be set.
Step six: Completion of sale
Once a completion date is set, solicitors will prepare a completion statement, consisting of:
- Sale price
- Rent/service charge
- Resale fee
Once you have received confirmation from your solicitor that your sale has completed, you can immediately cancel any rent or service charge Direct Debit payments.
If you believe any credit is due to you after the sale, you will need to let us know how we should proceed with the credit refund.
Once the completion of the resale takes place, a Notice of Transfer is required as per the terms of the lease and should be served within four weeks of the property being sold and include the contact information of the new owner.
Judy shares her Shared Ownership story:
“I was looking on Rightmove and noticed a lot of the new build houses were offering Shared Ownership so I looked into it and decided it was the way forward for me.
“My husband and I had separated. Due to my age (69) I probably would not have got a mortgage so I looked into whether I would qualify for a Shared Ownership house. I used the money from my share of selling the family home and some savings and paid a 50% deposit for my new home and pay rent on the remaining 50%.
“This works brilliantly for me as it costs much less that private renting and I still have the money from the 50% I own to leave to my family when I am at end of life. Even better, I now live in a beautiful new build home!
“I would recommend Shared Ownership to anyone. They may be first time buyers struggling to save the large deposits needed now, someone in my position – newly separated and in need of a new home, or anyone really in today’s financial climate who needs a helping hand.”
