There is a relatively large eligibility criterion for all Low Cost Home Ownership schemes (LCHO) which is based around the funds that are available, the criteria is used to prioritise who gets the use of the schemes. The priority usually depends on the location of the housing association and its specific funding rules.

In general all applicants for LCHO must meet the following criteria if they are to be considered:

  • The applicant has to be able to prove that they are unable to buy a home that fits its occupant’s needs within a practical traveling distance to their place of work without financial help.
  • The applicant must have British or EU/EEA citizenship or alternatively they must have indefinite leave to remain in the UK. If the person applying does not have indefinite leave to remain in the UK but are none the less interested in purchasing a home, they must be able to demonstrate that they can raise a mortgage with a suitable lender as well as showing they will be able to afford the mortgage repayments and are able to sustain ownership of the property in the long term. If this is the case, applications will be assessed on their individual merit.
  • The applicant must be able to prove they have savings or at worst access to a minimum of £4000 in order to cover the costs of purchasing a property. In addition to this the applicant must be employed on a permanent contract of employment.
  • Alternatively to the previous point, if the applicant is a key worker, they can be considered for LCHO if they are employed on a temporary contract on the basis that there is at least 6 months remaining of their contract and that the contract was issued at the outset for at least a 12 month period. If this is the case there must be a realistic prospect of the contract being reviewed and extended.
  • If the person applying for a LCHO owns a property at the time of application, they must sell this in order to be considered.
  • The applicant must have a good credit history.