New Build HomeBuy
New Build HomeBuy has ordinarily been known as Shared Ownership; part buy/part rent and shared equity. New homes are sold as leasehold properties on shared ownership terms – they can be flats or houses. The minimum share you can purchase is 25%, and 75% is the usual maximum. You will need to be able raise a mortgage for the share you want to purchase, and you will pay rent on the share you don’t own. Rents are calculated to be affordable and below the average market rent.
As you become able to afford to, you can buy additional shares until you own the whole 100% of the property. This process is known as ‘staircasing’. When you want to sell the property you can sell the share you own to another household nominated by your registered social landlord or you can staircase to 100% and sell it in the normal fashion.
However, your landlord may want to buy the property back from you to offer to other households who want to enjoy low-cost home ownership. They will tell you if they want to do this when you tell them that you want to sell. The property is sold at market value and you will benefit from any equity which has built up on the share that you own
Want more information on shared ownership in London
visit the shared ownership website www.sharedownership.ws
Go to On the Ladder to download and electronic version of the leading shared ownership magazine.
On the Property Ladder is London's leading property search
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