In April 2006 the government introduced the Homebuy initiative. Many people even in comparatively well-paid employment find that they can't afford to buy a home in Guildford. There are different ways of getting a first step on the property ladder, one of which is shared ownership.

What is it?
The scheme enables you to buy part of a property, with a housing association or the local authority owning the remaining share. Rent is paid to the landlord for the share that you don't own. Acceptance onto the register will give you access to shared ownership housing in the borough owned by either the council or housing associations.

What shares can I buy initially ?
You are expected to buy the largest share you can reasonably afford. The minimum amount you can purchase varies but it is usually between 30% and 50%.

What are the costs?
The initial costs are broadly the same as if you were purchasing on the open market. You will therefore need to employ a solicitor, commission a survey, pay stamp duty, and pay mortgage fees. It is also advisable to have enough savings for a mortgage deposit of 5% of the amount that you will be borrowing. Typically you will need between £5,000 - £10,000 in order to meet these costs.

How are properties allocated?
When a property becomes available details are published on the Guildford Homechoice website (this page opens in a new window). Applicants are able to express an interest in available properties up to a closing date. After the closing date all interested applicants will be considered and the property will normally be offered to the applicants with the highest priority.  You will be required to demonstrate your financial ability to proceed swiftly with a purchase.

Further shares and moving on
It is possible to purchase additional shares in your home. The price paid for further shares is based on an independent market valuation of the property at the time you wish to purchase more shares. (i.e. If the property is valued at £200,000 purchasing an extra 10% share will cost £20,000).  The transaction normally has to take place within six weeks of the new valuation.  Some rural schemes may have restrictions that prevent owners purchasing 100%.

If you purchase 100% of the property you can usually sell it on the open market. If you own a percentage of the property and wish to move the local authority will often have first refusal on re-purchasing the property. The share will be purchased at the current market valuation.

 

Housing Advice Services
Guildford Borough Council
Millmead House
Millmead
Guildford
Surrey
GU2 4BB

Tel: 01483 444244
Email: lcho@guildford.gov.uk