Shared ownership is an affordable housing scheme where you can part buy and part rent your home.
In the future, you can purchase additional shares (at the market value at the time) until you own 100% of the property.
You will need a mortgage and deposit for your share, and you will pay an affordable rent on the remaining share that B3@Home continues to own. The minimum initial share you could purchase is 25% and the maximum is 75%. However the shares you can purchase will depend on each individual development.
We assess applications on an individual basis and we will discuss with you the maximum share you can afford.
What is a 'guide price' valuation?
A guide price is an estimated value of the property at any given time. This is not the final valuation, however you will be able to complete a sustainability assessment with an Independent Financial Advisor based on this value, if you meet the local connection eligibility criteria for these properties. This will give you and us an idea of what share in the property you might be able to afford.
The final valuation will carried out by a RICS surveyor and will be released close to when the properties are built, and your sustainability assessment will be reviewed line with the final property price.
If your final sustainability assessment is successful, we will assess your application alongside other applications we have received, and we may give you the opportunity to reserve a property of your preference and start the legal process of purchasing that property.
This is dependent on the level of interest we receive for a particular property and where your application sits in terms priority of the eligibility criteria. We are unable to accept any reservations without the RICS surveyor final valuation of the properties on this development.
How is the rent calculated?
Rent is calculated based on the value of the share retained by B3@Home at the time of your first purchase. The annual rent is set at between 2.5% and 2.75% per annum of this value.
For example – you buy a 50% share in a property valued at £200,000. The value of the equity retained by B3@Home is £100,000.
£100,000 x 2.5% = £2,500 per annum, or £48.07 per week.
When can I buy more shares in my property?
You can purchase additional shares in your property after 1 year from your initial purchase. You can eventually own the property outright and this is called 'staircasing'.
The cost of any further shares will be based on the open market value at the time you apply.
If you do buy more shares, the amount retained by B3@Home will reduce and your rent will be reduced accordingly.