Buy a home from Wrekin

Shared Ownership.

Shared ownership gives first time buyers/those that do not currently own a home the opportunity to purchase a share in a new build or re sale property.

You pay a mortgage on the share that you own and a subsidised rent to Wrekin on the remaining share.

Because you only need a mortgage for the share that you purchase, the amount of money you need for a deposit is usually lower than the amount that would be needed when purchasing outright.

You can increase your share in the property. This is known as ‘staircasing’. How much you can staircase depends on the property. For most Wrekin homes this is restricted to 80%.

Shared owners need to pay rent, their mortgage and any relevant service charges and ground rent.

Shared ownership costs are usually lower than other housing options for a number of reasons:

• The rent is less than the rate charged on the open market and usually charged at 2.75% of the property value per annum.
• You can start with a little as a 25% share if buying through the existing scheme, or from as little as 10% if buying through the updated Shared Ownership model.
• Your deposit will be 5-10% of the price of the share, not of the full market value of the whole property.
• Stamp Duty Land Tax (SDLT or simply ‘Stamp Duty’) can generally be deferred until your share reaches 80%.

Eligibility for Shared ownership homes:

• You must be over 18 years old.
• Your annual household income must be less than £80,000.
• You cannot own another home. Shared Ownership purchasers are often first-time buyers but if you do already own another property (either in the UK or abroad), you must be in the process of selling it.
• You should not be able to afford to buy a home suitable for your housing needs on the open market.
• You must show you are not in mortgage or rent arrears.
• You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home during your Shared Ownership credit check.

Process for applying for Shared ownership homes:

• Properties will be advertised on Wrekin’s website. You can save a search so that we can notify you when this happens (link to Tab 2).
• You’ll complete our online application form and provide us with all of the details and documents that we need (ID, bank statements, employers’ details, payslips, mortgage in principle).
• We will carry out our assessment and notify you of the outcome.

Shared Ownership FAQs

• How long, approximately does the process take

  This is really hard to answer. It all depends on the enquiries the solicitors may raise

• Will we require a solicitor?

  Yes, you will need to instruct a solicitor. You will be responsible for their fees

• What exactly are we responsible for with regard to repairs and maintenance once we own a percentage of the property?

  You would be responsible for all repairs and maintenance to the property

• What if I want to sell my share? You would contact Wrekin’s Home Ownership Team.

  The Wrekin housing group don’t buy back any properties or shares.

  If you needed to sell the share you would get our consent to sell, then put the property on the market with an estate agent, whatever they value the property at your share would be worked out and paid to you, your solicitor would then inform Wrekin Housing group of who the new tenant is.

  When selling, you must use an estate agent who can provide a RICS valuation.

• What is staircasing?

  you can choose to buy further shares in your property.

  This process allows shared owners to build the percentage share that they own in their home.

  For example, if you initially purchased a 25% share in your home and went on to buy an additional 25% down the line, you would then own 50% of the property.

• Are there any restrictions to the amount I can staircase?

  Some properties are subject to restrictions to the staircasing process so it’s important that you check the terms of your lease in case there are any limitations.

  These restrictions can include a staircasing cap at 80% which are sometimes put in place as a result of planning permission to ensure that the property is retained for local people and does not become available as a second home

• Do I have to staircase?

  Absolutely not, the staircasing process is completely optional.

  While some buyers choose to buy additional shares in their home as their financial circumstances change, many owners choose to stay at their currently owned share.

Inreach.

If you want to get on the housing ladder, but can’t gain a mortgage due to low or no deposit, Inreach gives you the opportunity to rent a home from us for up to three years.

Within these three years, you will need to purchase a share of the property.

You will pay 80% of the open market rent and the other 20% you save, can be put aside to be used as a deposit.

Our Inreach homes can be newly built homes or homes that we are reletting after a tenant has moved out.

To be eligible for these homes:

• You must be over 18 years old and have the right to rent.
• Your annual household income must be more than £18,000 but less than £80,000.
• You must be in paid employment.
• You cannot own another home.
• You must show you are not in mortgage or rent arrears.
• You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home during your Shared Ownership credit check.
• You need to be able to pay a deposit of £600(2 bed) or £650 (3 bed) & 1 months’ rent in advance.
• There is an obligation to purchase a minimum 25% share within three years of your tenancy commencing.
• You need to have a local connection to the area that the home is located in.
• You will need a bank account to pay your rent from.
• You must have a minimum of £1500 to apply (proof is needed).

Process for applying for Shared ownership homes:

• Properties will be advertised on Wrekin’s website. You can save a search so that we can notify you when this happens (link to Tab 2).
• You’ll complete our online application form and provide us with all of the details and documents that we need (ID, bank statements, employers’ details, payslips, proof of £1500).
• We will carry out our assessment and notify you of the outcome.

Rent to Buy.

Rent to Buy gives people the opportunity to get on the housing ladder when they cant gain a mortgage due to no or low deposit.

Rent to Buy gives you the opportunity to rent a home from Wrekin for up to 5 years at 80% of the open market value with an opportunity to buy once you have saved money towards a deposit.

Eligibility for Right to Buy homes:

• You must be over 18 years old and have the right to rent.
• Your annual household income must be more than £21,000 but less than £80,000.
• You cannot own another home.
• You should not be able to afford to buy a home suitable for your housing needs on the open market or via Shared ownership.
• You must show you are not in mortgage or rent arrears.
• You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home during your Shared Ownership credit check.
• You must be in paid employment.

Process for applying for Rent to Buy homes:

• Properties will be advertised on Wrekin’s website. You can save a search so that we can notify you when this happens (link to Tab 2).
• You’ll complete our online application form and provide us with all of the details and documents that we need (ID, bank statements, employers’ details).
• We will carry out our assessment and notify you of the outcome.

FAQs

FAQs content. Use current content.

• Link to new build homes FAQs.
• Link to LCHO FAQs.
• Links to signposting information on Tab 2.