Can’t afford to buy your own property? Try New Build HomeBuy

New Build HomeBuy is a low cost home ownership option. It was introduced to help people who cannot afford to purchase a property outright and allows them instead to purchase initial shares of between 25–75 per cent. New Build HomeBuy was formerly known as Shared Ownership and is still commonly referred to as both. However, as the name suggests, New Build HomeBuy is aimed at new-build properties only where homes are built either by a housing association or by a developer for a housing association

When purchasing a property through the New Build HomeBuy scheme, you will be assessed to ensure that you meet the required criteria. The criteria can vary from housing association to housing association and can be found on their individual websites. However, as the scheme is aimed at those who cannot afford to buy a property outright, you should consider that priority would normally be given to those with priority housing needs.

Although you cannot immediately purchase the property outright under this scheme, you will still have the rights and responsibilities of a full owner-occupier. You can buy further shares in the property at a later date, until you own it outright. You will enter into a shared ownership lease which sets out your rights and obligations, and your legal advisor can explain the terms of this to you prior to exchange of contracts, should there be any points you do not understand.

As you will only be purchasing a share of the property, you will be required to pay rent to the housing association on the share that remains in their ownership. In order to purchase your share, you are likely to require a mortgage and you would need to arrange this with a bank or building society who lend on New Build HomeBuy/shared ownership properties. You should be aware that not all lenders provide mortgages on properties sold under this scheme.

You can sell your home at any time, but you must tell the housing association in writing. The housing association has the right to buy the property back from you or to find you a buyer for it; if you own 100 per cent of your home, you can sell it yourself. However, the housing association has the right to buy the home from you for up to 21 years after you fully own it.

If you have any questions on this subject, then please do not hesitate to contact me direct at helen.chaproniere@mablaw.com