Before you buy
Reserving your home
In order to reserve your chosen property, you will need to make a non-refundable payment of £500 (known as a reservation fee), which is payable to Yarlington. This will be deducted from the share price of your chosen property on completion.
Your reservation fee will not be refunded should you decide not to go ahead, for whatever reason, including if you change your mind; or we withdraw our offer of a home because you have given false information on your application form.
The reservation will be refunded if we are unable to offer you the home of your choice.
If the result of your application assessment is satisfactory, we will issue an official offer of a property. This summarises the details and costs of your proposed purchase, including a date by which the exchange of contracts is to take place, which usually is six weeks after the contracts are issued to your solicitor. During this time your mortgage lender will be preparing your mortgage offer and your solicitor will be doing the legal paperwork. Once you receive your mortgage offer you should advise your solicitor straight away to arrange an exchange of contracts.
Arranging a mortgage
Your mortgage lender will require a deposit from you to secure a mortgage. This normally ranges between 5% and 25% of your share value. Your financial advisor will be able to advise you which mortgage product is most suitable for you.
Appointing a solicitor
If you are buying a property, you will need to appoint a solicitor who will carry out the necessary legal work on your behalf. You should make sure you obtain an estimation of the likely costs before you go ahead. The costs will include their fee, the land registry and search fees and any expenses (known as disbursements). To help you decide which solicitor to use, a full list of approved solicitors is available on our HomeBuy agent’s website at: www.helptobuysw.org.uk. You do not have to use a solicitor from this panel however they are experienced in shared ownership which may result in a swifter process.
Stamp Duty Land Tax (SDLT) – This is a government tax on buying a home. You will need to obtain advice from your solicitor regarding any commitment you may have in relation to this.
Currently you can opt out of paying SDLT until you own 80% of the value of the property.
You will also need to set aside a sum of money to cover your removal costs. If you are going to use a removal company to move your furniture, make sure you get a few quotes as costs can vary significantly.