Homebuy (shared ownership)

The following information answers questions that are frequently asked about Homebuy, this was previously known as Shared Ownership.

What is Homebuy?

Homebuy was introduced in 2006 and is the new term to describe assisted home ownership. Homebuy is a way in which those that cannot afford to buy a home on the open market may be able to get help to buy a home. There are a number of different schemes available, however, not everyone will be eligible for all of the schemes. For all schemes applicants will have to have sufficient income to obtain and sustain a mortgage, and will normally require access to funds for a deposit and/or initial costs and fees.

All Homebuy schemes for the Woking area are administered by Catalyst Housing Group who is the Homebuy Agent for Surrey.  If you are registered for housing with Woking Borough Council through Hometrak, your registration will only enable you to be considered for homes to rent.

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Who is Homebuy for?

Homebuy is for people who want to buy a home of their own but can't afford to pay the full price straight away. There are different eligibility conditions for the various Homebuy schemes and all schemes are subject to availability and priority.

Applicants must fit into one of the following categories and must have a household income of less than £60,000 per year:

  • First Time Buyers who cannot otherwise afford to buy a home on the open market

  • Key Workers - as defined by the Government policy and includes a wide selection of categories within the following sectors i.e. health, education, police services, fire services, MOD. A full list of eligible individuals can be found on the Homes and Communities (HCA) website.

  • Council & Housing Association Tenants.

  • Other Priority Groups - which includes those that may be experiencing a major change in circumstances such as over crowding in an existing property due to a new family addition, a forced sale e.g. divorce/separation or a requirement to care for a sick relative.

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What schemes are available?

There are several schemes available including Open Market Homebuy and New Build Homebuy. More information can be found on the Homebuy website and the Homes and Communities Agency website.

  • New build Homebuy - this scheme allows you to share ownership of a newly-built housing association property. You are expected to buy an initial share of between 25 - 75% share of the property, with either a mortgage or savings and pay rent on the remainder to the housing association. A higher percentage may apply on some specified developments. Over time, you will have the opportunity to buy a greater share of the property. For more information contact Catalyst Housing Group on 0845 601 7729 or visit their website.

  • Homebuy Direct - this scheme was launched in January 2009 was is a "shared equity scheme" designed to help up to 10,000 first-time buyers into affordable home ownership. This scheme is only offered on specific new build properties and only offered by a number of selected developers. Eligible buyers are able to access an equity loan of up to 30% of the purchase price which is co-funded by the Government and the developer.  For more information contact Catalyst Housing Group on 0845 601 7729 or visit their website.

  • My Choice Homebuy - this is one of two Open Market Homebuy schemes available and is offered by Thames Valley Housing Association (TVHA). It provides a loan of up to 50% of the funding needed to buy a property. The applicant must arrange their own mortgage through an Independent Financial Advisor (IFA) or through a bank or building society. Additional fees include a 1.5% rate of interest on the loan, which is increased by the Retail Price Index +1 each year. For more information on this scheme, call 0845 600 6699 or visit www.homebuy4u.co.uk

  • Own Home - another New Open Market Homebuy scheme and is provided by Places For People (PFP). This scheme offers up to 40% towards the cost of a property. Mortgages can only be obtained from The Co-Operative Bank and there is a 1.75% charge per year on the loan after five years and this increases to 3.75% in year 11. For more information on this scheme, contact Places for People on 0845 607 0110 or visit their website.

  • First Time Buyers' Initiative - this scheme enables first time buyers to access up to 50% of the purchase price of a newly built home in the form of a Government supported loan. It is only applicable on designated schemes. There is no charge for the first three years on the amount the Government loan. After three years, there is a 1% per annum charge on the government loan, this will then increase each year by a fixed percentage reaching 3% after five years. For more information on this scheme contact Catalyst Housing Group on 0845 601 7729 or visit their website.

  • Rent to HomeBuy - Under this scheme, eligible individuals are able to rent a newly built home provided by a Housing Association at a rate which is normally at around 80% of the current market value. However, it is only available on designated properties.Depending on the particular housing provider individuals are able to rent the property for up to between 3 or 5 years at which point they have the option to become a shared owner in the property. For more information on this scheme contact Catalyst Housing Group on 0845 601 7729 or visit their website.

  • Re-sales - when existing shared owners wish to move on, a clause in their lease allows the housing association to nominate a new owner from a register of interested applicants. For more information on re-sales please contact Catalyst Housing Group on 0845 601 7729 or visit their website.

  • Social HomeBuy - This scheme provides opportunities for existing housing association or local authority tenants to buy a share in their rented home. Eligible tenants can purchase a minimum initial share of 25 per cent of the home and pay an affordable rent on the remaining share It is also possible for tenants to purchase 100% of the property. Buyers will receive a discount on the initial share purchase. This will be based on the Right to Acquire discount (between £9,000 and £16,000 - depending upon the local authority area in which the property is located), pro-rata to the share purchased. Interested individuals should initially contact their housing association or local authority landlord to find out if they are participating in the scheme.

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How much do I need to earn to be considered for Homebuy?

This depends on the value of the property, whether you have any capital to invest and how much rental and service charge is payable. Generally on new build schemes, single people need an income of £19,000+, couples £23,000+ and families £25,000+. These are just rough guidelines and can change quickly as prices vary and will depend on your mortgage offer.

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How much does Homebuy cost?

Each Homebuy Scheme is different and costs will vary, however, the costs below outline the main expenses regardless of assisted home ownership :

  1. Initial Costs: you will need to have between £3,000 and £4,000 for:

  • legal fees
  • building society valuation
  • deposit (if required)
  • insurance
  • stamp duty
  • removals.

Long term commitments: you will need to be able to afford the following each month:

  • mortgage repayments

  • maintenance and repair costs

  • rent

  • Council Tax

  • water rates

  • service charge (if applicable)

  • buildings and contents insurance

  • all utility bills.

  • Your responsibility will be the same as those of any home owner. You will be responsible for repairs and maintenance and for decoration. If your property is a flat there will be a service charge to pay for the maintenance of common parts.

    Other costs you should consider are:

    • mortgage: the mortgage contract is between you and your mortgage provider. If you fall behind with payments let them know. If financial difficulties cannot be overcome, it is possible that you could lose your home. Many mortgage providers offer mortgage protection plans in the event of redundancy. It is worth looking into this option when taking out your mortgage.

    • rent and service charges: your landlord can take action under the lease if you fail to keep up with these payments. This could also mean losing your home.

    If you get into difficulties please contact Housing Options for advice on 01483 743834.

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    What size property can I buy?

    You can buy up to one bedroom above what you currently require.

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    How do I get on the list?

  • You must register with Catalyst Housing Group. An on-line application form is available or you can contact Catalyst Housing Group on 0845 601 7729.

    As with all offers of accommodation there is no real way of knowing how long you will have to wait for a suitable property.  All schemes are subject to availability and priority.

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    How are properties allocated?

  • Homebuy opportunities are allocated to people registered with Catalyst Housing Group from a pool of applicants with the required income or above. It is therefore important for applicants who have applied to Catalyst Housing Group to update Catalyst with new income details or any changes in family circumstances.

    Applicants who are already Council or housing association tenants will be prioritised for Homebuy because they will be freeing up a rented property. These applicants will be assisted ahead of others.

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    I'm a key worker, what schemes are available to me?

The following options are available to key workers:

  • Open Market Homebuy.
  • Newbuild Homebuy.
  • Intermediate rented accommodation.

All of these schemes are administered through Catalyst Housing Group. For more information please contact 0845 601 7729 or visit their website

As the zone agent, Catalyst Housing Group is responsible for providing affordable housing options to over 700 public sector key workers over the next two years. Catalyst Housing Group will be the single point of contact for key workers in Surrey, Berkshire and Hampshire for NHS staff, Police Officers, teachers, health workers, Social Workers and some other public sector workers.

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Contact us

If you would like more information about these schemes, please contact the Housing Enabling team on 01483 743836 or email: housingenabling@woking.gov.uk 

Also in Schemes to help you find a home