Social HomeBuy is a scheme available from some housing associations or local authorities. It is an option that provides tenants the opportunity to purchase a share in their rented properties.
How it works
Tenants have the option to buy a minimum initial share of 25 percent of their home, with the remaining equity remaining in the possession of the landlord. The landlord then reduces the rent according to the percentage of the un-owned equity. It is possible for the tenants to continue purchasing shares until 100 percent of the property is owned. The price of the shares is based on the market value of the property at the time of their purchase.
What are my options after buying through Social HomeBuy?
The staircasing process can come into play, by which the tenant gradually buys more and more of the property. As more of the property is purchased the rent is reduced proportionately.
If the owners of a property wish to sell their home, their share is marketed for sale through the housing association in order to allow other people in need of affordable housing the opportunity to own a low cost home. The property is resold at the market value at the time of sale.
If 100 percent of the property has been purchased, there may be service charges that still have to be paid, for more information on this ask the appropriate landlord.
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- What is a Mortgage?
- Types of Mortgages
- Mortgage Fees
- Mortgage Repayment Options
- Can I Afford a Mortgage?
- How do Lenders Assess Borrowers?
- How to get the Right Mortgage Deals
- What to Take to a Mortgage Meeting
- What to Look for in a Mortgage
- Scheme Availability
- General Homebuy Rules
- London Help To Buy
- Starter Home Initiative
- Help to Buy Equity Loan
- Help to Buy 2 Mortgage Guarantee
- Help to Buy ISA
- Right to buy
- Social HomeBuy
- Shared Ownership Schemes
- Forces Help to Buy