Home Purchase Options
The following are those initiatives currently available to support home ownership.
Home buy scheme promotes home ownership, normally supported by grant funding adminstered by a Housing Assocation. This grant can be between 20%-50% contribution towards the purchase price. In addition there is a requirement on the applicat to provide a 5% deposit. Please note that each case will be assessed in line with Welsh Government Acceptable Cost Guidance – http://gov.wales/topics/housing-and-regeneration/publications/acceptable-cost-guidance-2015/?lang=en
Shared Equity Schemes
The term ‘shared equity’ refers to initiatives where the home owner does not own the full value of the property, i.e. 100%. This in no way affects the rights and responsibilities of the home owner and no payment is required for the un-owned share.
The un-owned share is held either by the Council or a Housing Association and can be between 10% and 50% of the property value. In addition there is a requirement on the applicat to provide a 5% deposit
In ‘shared equity’ schemes, the un-owned percentage only becomes payable when the property is sold and is calculated on the market value at that time. Normally, the home owner can purchase the un-owned percentage when their financial position allows. If the property is being sold then a percentage of the value of the property on the open market at that time will be repayable.
In these schemes, the homeowner, whilst retaining the full rights and responsibilities of home-ownership, will be required to contribute a % of the purchase price by using their savings or applying for a mortgage. In addition there will be a requirment to pay rent to the Councill or Housing Association on the un-owned part of the property.
Intermediate Rent Scheme
A scheme that allows people with an income but who do not qualify for a mortgage to rent accommodation that does not exceed 80% of the rental market level. This is to help the Occupiers to save for a mortgage deposit to allow them to purchase a home in the future.
A grant or loan may be available to assist purchasers to bring empty homes back into use in areas of housing need. For further information please visit your Local Authority’s web-site.
Self-Build Plots S106
Made available either by the Council or Land Owners and sold a % below market value. The self-builder is responsible for designing and building their home and all the costs involved. The Council may be able to provide bridging loan facilities until the building is sufficiently advanced to secure a mortgage. This facility is currently only available in Anglesey. There may be a requirment for the individual to contribute a 20% deposit towards this scheme. Please refer to the Council’s Supplementary Planning Guidance for further information.
Discounted S106 Properties.
A scheme where the developers builds the homes and sell at a % under the open market value. The % is agreed during the planning process. Applicants must meet the criteria of the S106 and the Council’s Supplementary Planning Guidance.There is also a requirement for the purchaser to contribute 20% deposit of the discounted price of the property.
Please note – on the re-sale of any properities purchased through any of the above schemes Tai Teg will advertise the property on their site to allow those who have registered with Tai Teg an opportunity to purchase an affordable home.
- Your home is at risk if you do not keep up your mortage payments