New Build HomeBuy

New Build HomeBuy HomeBuyDirect Social HomeBuy First Time Buyer London Wide

New Build HomeBuy has been around for a number of years and was more commonly known as shared ownership. It is presented in a number of forms but the basic principle allows you to purchase a share in a property using a mortgage or part mortgage and part personal deposit. The remaining share of the property is retained by a housing association to whom you pay rent for letting it to you. Initial shares can start from as low as 25% of the purchase price.

Housing Associations are registered social landlords who can apply for government grants to assist in developing properties and are regulated by the Housing Corporation. The rent will be less than the normal rent you would pay if you were renting the whole property because it is based on the proportion of the share you don't own. So, if you own a 50% share, you pay 50% of the total rent.

You have the option of buying further shares in the property until you own it outright. The price of these future shares are based on the prevailing value at the time. This process is known as staircasing. Equally, you can remain a shared owner throughout the mortgage term and once the mortgage has been repaid you carry on paying the rent.