Do you want to get into home ownership but find property prices put a mortgage just out of reach? Many people in this position choose shared ownership. This represents a more affordable solution, where you part-buy and part-rent the property, which can lead to full home ownership in the future.
Hexagon is building modern, attractive homes to sell through shared ownership. To find out if this could be the best choice for you, please read on.
You buy an initial share, which can range between 25–75%, in one of Hexagon’s new homes using a mortgage from a bank or building society, and pay a subsidised rent on the remaining share. The combined mortgage and rent is normally less than you would expect to pay if you bought a similar property outright.
After a year, you can increase your share of the property through ‘staircasing’. In most cases, you can eventually own your home outright.
The scheme aims to help people who cannot afford to buy a home outright. Most people who take up shared ownership are working, but unable to afford to buy in the open market.
Some of our brand new homes may be part of a larger development where some properties are for outright sale or for rent to local-authority and housing-association tenants. Our new homes carry a 12-month defect liability period, while the standard kitchen appliances are covered by the manufacturer’s guarantee.
A minimum level of income will be required, which will vary with each home. We will be unable to help you if you can afford to buy a home outright.
We give priority to council and housing association tenants who will move out of their rented home if they get a shared ownership home, and to people on the local housing waiting list.
The scheme is available to first-time buyers who cannot afford to buy a suitable home on the open market.
Bear in mind that the one-off costs involved in buying a home can add up – for example, legal fees, a valuation, mortgage fees, Land Registry and Stamp Duty, removal costs and a deposit towards the mortgage share. In order to proceed, you will require access to savings of around £3,500, as well as a 5–10% deposit of the share price being sold to pay the lenders.
Once you have bought, your ongoing costs include:
• Your monthly mortgage repayment.
• The rent you pay to Hexagon.
• A monthly service charge for the maintenance and upkeep of common parts.
• Usual household costs such as council tax, water rates, fuel charges and contents insurance.
• Repairs and maintenance.
You can buy further shares in easy stages so that, eventually, you own your home outright. Remember that the price of the property may have changed since you bought it, and it can go up or down. You will pay for a valuation at the current market value when you buy more shares. See our leaflet entitled ‘Staircasing to a bigger share of your home’ for more information.
You can sell your share in the property at any time. You must contact Hexagon first and an independent survey must be carried out to decide what your share of the property is worth at the time you sell. For more information on this, see our page ‘Selling your shared ownership home’.
Get in touch with Hexagon. We can tell you more about shared ownership and the new homes we are selling. We can also help you to work out the finances to see if this is the best option for you.
You can email your enquiry to Sales@hexagon.org.uk, or call our Sales Team on 020 8768 7989.
First Steps London is the Mayor of London’s programme for first-time buyers looking to buy or rent a home in the capital. You can find more detailed information on your eligibility and options at https://www.london.gov.uk/what-we-do/housing-and-land/homes-londoners.