Shared ownership

Shared Ownership Allocation Policy

  1.  Qualifying criteria

Shared Ownership and the resale (assignment) of existing Shared Ownership leases are intended for eligible people who cannot afford to buy a home suitable for their needs on the open market.

To qualify to purchase a new build home, you will often but not always, need to have a local connection to the area in which you want to buy. Sometimes this requirement can be strictly imposed by a planning condition. In other cases, you may either just have to live or work in the same district as the property. Whatever the situation, this information will be contained within our application form and our sales team will provide you with any further details you may require.

For resale properties, the restrictions in force when the property is first sold still applies when being resold. Whatever the situation, full details will be found in the contract for sale and accompanying legal documentation. We strongly recommend you seek advice from your solicitor before purchasing your home.

For you to qualify for a property you will:

  • Be 18 years or over and be a resident in the UK
  • Have a household income less than £80,000
  • Be not a home owner or named on a home mortgage (applicants in the process of selling a home will be considered)
  • Be unable to afford to buy a home on the open market
  • Have available deposit of at least 5% of the purchase price, depending on the lender’s requirements
  • Have access to additional £2,500 to cover legal fees and the cost of moving
  • Household debt not exceeding £15,000
  • Be able to financially sustain home ownership in the longer term
  • Have a good credit history (Your application will probably be unsuccessful if you have any County Court Judgements or Defaults not settled/unsatisfied) 
  • Allocations criteria

2. Allocations criteria

  • Ability to afford without hardship

Yarlington must be satisfied that you can meet the full costs of home ownership for the scheme you are interested in. This means being able to pay any mortgage on the share you own and the rent on the share retained by us, plus meeting all the other costs of being a home owner.  Applications will also be credit checked. Your application will probably be unsuccessful if you have any County Court Judgements which are not accompanied by a letter of satisfaction.

  • Housing Need

Following the latest Government’s revisions to the Shared Ownership eligibility criteria,  there is no longer any assessment of housing need before allocating a home and therefore there is no longer any restriction on the number of bedrooms in a property you are applying for, unless specified in any planning condition. 

  • Eligibility

The only applicant group which takes priority above others are those from members of the British Armed Forces, unless conditions within the planning consent apply e.g. highest priority given to local people living within the community where the homes have been constructed. Should any such special conditions apply, we will make them clear to you when you apply.

Applications from non-Armed Forces personnel and where no local connection or planning conditions apply, will be dealt with on a ‘first come, first served basis’.   This means that we will prioritise completed applications in the order in which we receive them.  We define a completed application as one which has been approved by the independent mortgage broker and which has all its supporting information supplied. 

3. The allocation process

  • Property viewings

You will be invited to view youir chosen property. 

For new build homes, we will organise your visit (subject to the construction stage) and our sales team or our agent, will show you around the homes on offer.

For re-sales, we will put you in touch with the owners and provide you with written details of the sale, including the share available for purchase and the rent payable on the remaining share.

  • Submitting your application form

If you wish to apply to purchase, you will need to complete Yarlington Homes’ application form and submit it with full supporting documentation, as quickly as possible, to a member of the sales team. 

  • Assessment process

Most applications will be assessed in order of the date on which we receive a completed application with all the supporting information required to complete our assessment. 

Once a property has been allocated, we do not accept further applications for the home unless the existing sale falls through. In these circumstances we would offer the property to the next approved applicant from the list of those who have applied.

Before you can exchange contracts for one of our homes, you may need to register with the local Help to Buy Agent.  Sometimes you will also need to register with the Local Authority. We will be able to give you guidance on how and when to do this.

We can only progress an allocation of a home when we have received all of the following information from you:

  • Completed application form available on our website here
  • Registration with the HomeBuy agent for this area, online registration at: www.helptobuysw.org.uk or www.helptobuysouth.co.uk
  • Mortgage agreement in principle with the key facts document
  • Three months’ bank statements for all accounts
  • Three months’ pay slips
  • Details of any additional income (if applicable)
  • Evidence of savings sufficient to cover lender deposit or share being purchased plus an additional £2,500 to cover your legal fees and moving costs
  • Evidence of any outstanding loans including credit cards
  • Photographic proof of ID
  • Credit referencing report for each applicant

If you are offered a property, we may conduct a Land Registry search (whilst completing the sales transaction) to confirm that you do not own another property.  If this check indicates that you do own another property (or did recently), that we are unaware of and is not being disposed of, our offer may be withdrawn and you could lose your reservation fee.

If a joint application is made, both applicants must be named on the Shared Ownership lease and on any mortgage on the property.

  • Reservation fee

For new build sales, once you have been offered a property, if you wish to proceed, we will ask you for a non-refundable reservation fee of £500. This will be deducted from the purchase price when you complete the sale.

  • Time scales

We will do everything we can to help you into your new home in the shortest possible time and we ask that you do your best to work with us to achieve this goal.   We will normally expect an exchange of contracts (when you are legally committed to the purchase) within six weeks of us issuing the sale contract to your solicitor (unless other timescales are specified). Completion of the sale (when you move in) should take place within a further two weeks (subject to the completion date of the development).

Unless there are circumstances beyond your control, we may be forced to withdraw an offer of sale if these timescales are unreasonably delayed.

For resale homes, the timescale will be agreed between you and the seller although we will always try to assist with the process where we are able to.

 
Contact our sales team on 01935 404006 or email shared.ownership@yhg.co.uk