SO Resi Staircasing Magazine by The Ultimate Guide Company

CONTENTS

welcome

HELLO! Firstly, I do hope you are safe and well during these very strange times. During this period, it has really made everyone aware that their home is very important – it is a place that is safe and secure, is comfortable and in an area you love. Whatever your own circumstances we are very excited to bring you an online edition of the SO Resi magazine in partnership with First Time Buyer. This magazine gives you the latest information about how you can buy more shares in your home and all the assistance we put in place to help you achieve this. There is some very useful and important information about leases and if you are considering moving up the ladder to buy a bigger shared ownership home or on the open market we have highlighted some of our superb developments from across the regions. Finally, an important part of any decision when buying is the finances and we have partnered with Metro Finance to give their top tips on what you should be thinking about. On behalf of the whole team, we work hard to make homeownership possible and I hope you find this magazine very useful and informative. Kush Rawal, Residential Investment Director, SO Resi

CONTENTS 04 | SHARED OWNERSHIP

18 | ABOUT MY LEASE

If you are struggling to buy your first home, we give you the low-down on shared ownership, the scheme which only requires a 5% deposit.

All shared ownership properties are sold as leasehold. We give the low-down of exactly what leases are and how you can extend them If necessary.

06 | WHERE WE ARE

22 | FINANCE Metro Finance gives their top tips on how to buy more shares in your home.

A quick look at where some of the SO Resi developments are around the country.

08 | BUYING MORE OF YOUR SHARED OWNERSHIP HOME Buying further shares will allow you to eventually own 100% of your home. We explain how it works and why you should consider it.

12 | SELLING YOUR SHARED OWNERSHIP HOME If you are considering moving up the ladder then selling your shared ownership home is simple. We explain how the dedicated SO Resi resale team will be there to help you every step of the way.

24 | REAL LIFE Tony and Chloe Carter bought their first home through shared ownership nine years ago and have now upsized twice using the same scheme, now happily living in their forever home in Wokingham.

28 | REAL LIFE After finishing university, CJ Glover moved back home with his parents. Keen to find a place of his own, his mum showed him an article about SO Resi’s shared ownership homes at Cardew Court in Bracknell and CJ moved quickly to buy the last two bedroom apartment.

ON THE MARKET Everything you need to know about these affordable SO Resi homes.

SO Resi is the brand for shared ownership homes by Metropolitan Thames Valley (MTVH), one of the UK’s largest housing associations. SO Resi aims to improve understanding, change perception and increase awareness of shared ownership and break down the barriers to homeownership. Shared ownership with SO Resi enables hopeful homebuyers – who are otherwise priced out of the open market – to get on to the property ladder in excellent locations. MTVH is also the only housing association to offer SO Resi Plus, a unique scheme which enables shared owners to buy an additional 1% of their home each year for 15 years at a fixed price and without the fees of arranging a solicitor each time they want to buy a new share.

Details correct at time of going to press July 2020. A reservation fee of £250 applies and will also be deducted from completion monies. Additional eligibility and affordability conditions apply. SO Resi, Metropolitan Thames Valley, Premier House, 52 London Road, Twickenham TW1 3RP.

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GUIDE TO SHARED OWNERSHIP

simple

SHARED OWNERSHIP

HELPING HOPEFUL HOMEBUYERS ON TO THE PROPERTY LADDER WITH SHARED OWNERSHIP YOU BUY A SHARE OF YOUR HOME, WITH A LOWER DEPOSIT AND A SMALLER MORTGAGE, AND PAY A MONTHLY PAYMENT ON THE REST

SO FLEXIBLE

You start with buying a share of your SO Resi home – between 25% and 75% – that suits your income. That means your monthly mortgage payments and deposit are smaller than if you bought your home outright. You also make a monthly SO Resi payment for the share of your home that you don’t own and a service charge to look after the building. You can buy a bigger share of your home in the future, and even own 100%. The bigger the share you own, the lower your SO Resi payment will be. You can sell your share at any time.

SO INVITING

SO Resi is about opening the door to home ownership for as many people as possible. You need to have a household income of less than £80,000 (£90,000 in London), and be able to pay the deposit and one-off costs, afford the monthly payments and secure a repayment mortgage with a recognised lender. In some cases, people who live or work in a local area may be given priority at certain developments.

SO CLEAR

SO Resi aims to build strong, lasting relationships, so it’s very important that the costs of shared ownership are made completely clear. Every month you will need to pay your mortgage, your SO Resi payment and your service charge, plus all the usual costs of owning a home such as utility bills and repairs. In addition, before you move in, you will need to find a reservation fee (refunded when your purchase is completed), your deposit, solicitor’s fees and disbursements and fees for your independent financial adviser. You may also have to pay Stamp Duty depending on circumstances.

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GUIDE TO SHARED OWNERSHIP

You buy a share of your home, with a lower deposit, smaller mortgage and monthly payment on the rest

making home ownership possible

3. Typical monthly payments

1. Five simple steps to home ownership

ONE Register with us and apply

TWO Choose your So Resi home and reserve it

THREE Mortgage is agreed following a credit check

Example based on a £300,000 home

FOUR Exchange contracts and complete

FIVE Pick up the keys to your new So Resi home

£300k

10%

25% = £75k

£ 25% = £75k

If you were to buy a 25% share of a £300,000 home your share would be worth £75,000 and our share £225,000.

If you paid a 10% deposit of £7,500 your mortgage would be on the remaining £67,500.

Your monthly mortgage payments based on 3% interest rate would be £320 for 25 years

Your monthly service charge payment estimate would be £120

Your monthly So Resi payments based on a 2.75% annual charge would be £516

The total of these three monthly costs would be £956

2. So what are the costs?

ONE OFF COSTS Reservation Fee £250 Deposit FROM 5% Solicitor’s Fees £1000+ IFA Fees £400-600 Stamp Duty TBC THANK YOu FOR SHOPPING WITH

making home ownership possible

Monthly Costs Monthly

Monthly

Your Mortgage

Your So Resi payment

Monthly

Your Service Charge

Usual costs of home ownership

So Resi is about opening the door to home ownership for as many people as possible. If you want to get on the property ladder, it’s a good idea to find out whether it could help you. So Resi by Metropolitan Thames Valley is simplifying shared ownership

Find out more at

About your mortgage: We’ll put you in touch used to measure inflation, so if the RPI is 3% and with an independent financial adviser (IFA) the increase set out in your lease is 0.5%, to help you choose the right mortgage. your SO Resi payment for that year will The monthly cost will depend on how go up by 3.5%. FOR EXAMPLE much you are borrowing and the If you bought a 25% share of a £300,000 home, interest rate. Some mortgages are About your service charge: This your share would be worth £75,000 and SO Resi’s fixed rate, so the amount you covers the costs of looking after share would be £225,000. pay won’t change for a defined communal areas of the building A 10% deposit on your share would be £7,500, so you would period of time, others are you live in, including buildings need a mortgage for £67,500. variable, so you will have to insurance, cleaning, repairs, pay more each month if rates gardening and window • Assuming a mortgage interest rate of 3%, your mortgage go up. It’s very important cleaning. You need to pay payments would be £320 a month to pay your mortgage each the service charge while you • Your monthly SO Resi payments based on a 2.75% annual month as your home can be live there, even if you own it charge would be £516 repossessed if you don’t. You 100%. It is likely to go up over • Your monthly service charge payment estimate pay your mortgage until the time as the costs of insurance, would be £120 amount you have borrowed and work and materials goes up. It • The total of these three costs would be the interest has all been paid, only covers shared areas of the £956 each month usually in 25 years. building you are responsible for • You will also need to budget for council tax and utility bills paying for repairs, maintenance and About your SO Resi payment: This cleaning inside your home. monthly payment is for the share of your home that you don’t own and you must pay About everyday costs: As long as you live it while you live there, or until you own 100% of in your home you will have to pay household it. The bigger the share you own, the lower the SO utility bills such as water, gas and electricity, as well Resi payment is. It doesn’t cover services, repairs or as council tax and contents insurance. You also maintenance to your home; SO Resi uses the funds need to pay for repairing and replacing things inside to build new housing. Payments go up each year your home, from the boiler to the kitchen appliances. based on inflation plus a fixed percentage set out in There may also be ground rent to pay. your lease agreement. The Retail Price Index (RPI) is

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ON THE MARKET

yours

WHERE WE ARE

SG12

SO RESI FORSTER OAKS

SO RESI WARE

SG1

AL7 SO RESI WOKINGHAM

RG41

SO RESI MILL PARK

SO RESI TIMES SQUARE

RG12

LONDON

SL6 RG40

SO RESI MAIDENHEAD

SO RESI KENTWOOD PLACE

GU16 RG45

SO RESI CROWTHORNE

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SO RESI CAMBERLEY

ON THE MARKET

PE28

SO RESI BRAMPTON PARK

CHELMSFORD

N1 HA0

SO RESI HACKNEY CORNER

SO RESI THE RISE

MAIDSTONE

SW4 RH1

SO RESI CLAPHAM PARK

SO RESI REDHILL

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much more

BUYING MORE OF YOUR SHARED OWNERSHIP HOME

BUYING FURTHER SHARES IN YOUR HOME WILL ALLOW YOU TO EVENTUALLY OWN 100% OF YOUR HOME. HERE WE EXPLAIN HOW IT WORKS AND WHY YOU SHOULD CONSIDER IT WHY BUY MORE SHARES? When you bought your shared ownership home originally, you will have purchased a percentage of the property – perhaps 25%, 40% or 50% of the home, depending on your financial circumstances. You will have put down a deposit and taken out a mortgage for the remaining part of your share. The part that you own will generally increase in value over time (even with some ups and downs in the market), so the value of your share will typically increase. You will not benefit from the increase in value on the share you don’t own. You will continue making a payment to us on the part you do not own, and this payment increases with the Retail Price Index each year. If you buy more shares, you will benefit in two ways – you will have a larger appreciating asset and the payment to us will be reduced.

50%

FULL OWNERSHIP If you continue to buy more shares when you are able to, you can achieve full home ownership. This gives you even more advantages – you benefit from the whole of any increase in value on the property and you no longer make a payment to us. You will also have more choice of remortgage options as you are not limited to shared ownership mortgages. There are other advantages as well once you own 100%, such as being able to sub-let your home. If your shared ownership property is a house, then achieving 100% ownership will usually mean that you are granted the lease of the property as well, so you will become a freehold owner and will not pay any ground rent (although there may still be service charges depending on the location). Flats will remain leasehold, but you still gain all the other advantages. In some circumstances, you may not be permitted to staircase to 100%. With the Older Persons Shared Ownership Scheme you can only buy up to 75%, but at this point no rent is payable. Housing associations may also restrict you from owning 100% of your property in some specific developments, to ensure that the homes always remain affordable. This information would be in your lease.

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60% The smallest additional share you can buy is 10% of your home’s full market value

Do you want to buy a bigger share of your home?

WHY BUYING A BIGGER SHARE IS A GOOD THING?

Here’s a brief guide to help explain how it works…

If you haven’t done so already let us know you’d like to buy a bigger share and ask us for our useful ‘Buy a bigger share’ guide

HOW? IT’S EASY…

Owning more of your home can be a satisfying feeling – and so can working towards owning 100% of it. It could help you financially too.

Buy 10% or more of your home’s full market value at any time. You can even buy over 10% in multiples of 5%. That’s 15%, 20%, 25%… all the way to full ownership.

REDUCE YOUR SO RESI PAYMENT

GROW YOUR INVESTMENT

Each time you buy a bigger share, we’ll work out your new SO Resi payment based on our new smaller share. Use our share calculator on the SO Resi website to see how much your rent could go down by.

The more of your home you own, the more you benefit if house prices go up. When you think about this, don’t forget that house prices can also go down.

HELPING YOU DECIDE Check a few simple steps to decide whether buying a bigger share is a good move for you.

STEP 1

STEP 2

STEP 3

Get your home valued

Talk to a lender

Make a decision

Check the SO Resi website to view the price of similar homes near you. Websites like rightmove. co.uk or zoopla.co.uk are handy too.

If you need to borrow more money on your mortgage, speak to your lender now to find out whether that’s possible and how much it will cost.

Now you have a clearer idea on the costs, it’s time to decide whether to go ahead.

• Step by step guide • Frequently asked questions • Recommended Independent Financial Advisors • Recommended Surveyors • Recommended Solicitors

WHAT YOU NEED TO DO…

THE

COSTS

INVOLVED

The main cost is for the bigger share you are buying. You also need to pay for:

WHEN’S A GOOD TIME? It’s up to you to decide when the time is right, but here are some pointers to help. A pay rise or better paid new job You get a big bonus You come into some money The value of your home goes up Your mortgage rate goes down

• Valuation report from a RICS surveyor • Mortgage lender’s fees for arranging extra borrowing on your mortgage • Solicitor’s fees for the legal work

1 2 3 4

Ask an independent RICS surveyor to write a valuation report. You pay them and they send the report to you and us.

Look out for our offer letter with the price, then complete and return the Acceptance of Offer form that comes with it.

Instruct a solicitor as soon as possible and give them all the paperwork they ask for quickly to keep things running smoothly.

Make sure your mortgage funds or savings are ready on the completion date.

Do you have any questions?

WHAT WE WILL DO…

• Stamp Duty – if applicable your solicitor will let you know This is only an indication of costs Your solicitor will provide you with a full list of costs for your purchase THANK YOU FOR SHOPPING WITH

making home ownership possible

70%

In this document you can find more detailed information to help you through the process including:

Call us on 020 8607 0550

1 2 3 4

Check the valuation report and work out how much it will cost you to buy the bigger share you want.

Look at any improvements you’ve made and decide whether to deduct the value of these from the overall value.

Send you an offer letter with the price explaining what to do next. When we get your Acceptance of Offer form, we’ll tell our solicitors to go ahead.

Send a completion statement setting out the final amount to buy the extra share and get all your SO Resi payments and service charges up to date.

Email sales @soresi.co.uk

90%

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much more

IS IT THE RIGHT TIME? First of all you need to consider if it is the right time for you to buy more shares, as there are costs involved. While your payment to us will be reduced, if you are increasing your mortgage to buy an additional share, there could be an increase in your mortgage payment which could add to your overall costs (depending on mortgage rates). You also need to pay valuation and legal fees each time you buy more shares. The cost of buying a further share is based on the current value of the property (not the value when you bought your initial share). So if property prices have fallen, a 25% share could cost less than you originally paid for 25%, but if prices have risen, it will cost more. Bear in mind that the part that is owned by us will most likely increase in value over a period of several years, so if you leave it too long to decide to buy more shares you might find it has become too expensive.

HOW MUCH CAN I BUY? The smallest additional share you can buy is 10% of your home’s full market value at any time. However, as there are valuation and legal fees to pay each time, and these cost the same however much you are buying, it makes sense to opt for the largest extra share you able to afford in one go (the average transaction at SO Resi is 40%). Over 10% you can buy more shares in multiples of 5%, so it’s possible to buy 15%, 20%, 25%, 30% and so on – right up to the point where you own 90%, when you must buy the final 10% in one go. You can do this multiple times.

FIRST STEPS An informal chat with your lender or an independent financial advisor about mortgages is a good place to start – there’s no point paying valuation and legal fees until you know that you can afford to buy more shares. If the prospect of a mortgage is looking good (or if you have saved up), the next step is to get the house valued. You will need to pay for this (around £250), and it must be done by an independent RICS surveyor. We can provide you with details of surveyors when you want to buy more shares. The value of home improvements can be deducted from the valuation, however only certain

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improvements are considered and they need to have been approved by us as stated in your lease. This valuation is only valid for three months, so once it is in place you need to move forward fairly steadily. If there are any delays, your surveyor may be able to extend the valuation for a small fee if you contact them before it expires. At this point you should also appoint a solicitor to act for you, making sure you choose a firm that has experience with shared ownership transactions. The solicitor’s fees cost upwards of £500 on average.

MOVING FORWARD When SO Resi has your valuation report, we will send you an offer letter with the price, and an Acceptance of Offer form for you to sign and return, along with details of your solicitor. Make sure that your mortgage is confirmed and ready so that funds can be transferred when all the legal work is ready. The legal process usually takes around six to eight weeks. If you are considering buying more shares, please contact us at aftersales@soresi.co.uk, and we can send you an information pack.

£500 FOR THE NEXT STEP UP Buying a bigger share of your SO Resi home So, you might be thinkin about owning more of your home? Just in case this summer is that perfect time for you, we’re currently offering our leaseholders £500 towards legal fees, if you buy more shares and complete by 30th October 2020 – terms and conditions apply*. Here’s a quick reminder of the benefits of stepping up your share. Easy | Simply stay in your home and buy a bigger share of it. Flexible | Grow your share in a way that suits your budget and life. You can buy from just 10% of your home’s full value at any time. Financially savvy | Cut down your shared ownership payment and grow your property investment, step-by-step. Good planning | By buying more of your SO Resi home over time, you can work towards owning it outright. There’s no place like home It’s where you can truly relax. And the more of your home you own, the more that feeling grows. Want to know more? Contact our Aftersales team on 020 8607 0550. We’re here to talk you through what’s changed for you, and how to take the next step. Aftersales making the most of your home

BUYING MORE SHARES *Terms & Conditions

100%

Terms and conditions apply – You will be eligible for this incentive if you complete by 30th October 2020. The incentive for £500 is to be deducted from the total amount owed to us on the date of completion. This incentive is available for completions taking place from 27th July 2020. We recommend that you instruct your solicitors early in order to meet the deadline of 30th October 2020. Legal requirements may cause delays to the process. We encourage you to inform your solicitor of this offer and explain to them that the incentive applies if the deadline of 30th October 2020 is met. When you have your valuation carried out, please provide evidence to the surveyor of any improvements you have carried out. Please note these improvements would need to have been approved by us at the time of the works. Only certain improvements are accepted for the purpose of a valuation. Please read our Buying a bigger share guide for more information. If the valuation is expiring before the incentive deadline, the valuation expiry takes precedence over the incentive deadline. You will need to get a re-valuation expiry date.

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RESALES

easy

SELLING YOUR SHARED OWNERSHIP HOME

PEOPLE HAVE MANY REASONS FOR MOVING HOUSE, BUT WHEN YOU DO DECIDE TO MOVE ON, SELLING YOUR SHARED OWNERSHIP PROPERTY IS NOT A DIFFICULT PROCESS, ESPECIALLY AS OUR DEDICATED SO RESI RESALE TEAM WILL BE WITH YOU EVERY STEP OF THE WAY WHAT SO RESI WILL DO If you feel like moving on, the first thing you should do is talk to our Resale team, as in the first instance we will market your home for you. Your lease will state what is called the “nomination period”, which is the length of time that SO Resi has to sell your property for you (normally eight weeks). If we have not found a buyer within this period, you can choose to use an estate agent. During the marketing period we will normally sell your current share of the home (or a larger share) to a buyer who has been approved for the share ownership scheme.

WHAT YOU NEED TO DO When you have spoken to us about selling, you will need to pay for a RICS valuation report for the home. When we have received this, along with other documents we need to market your home, your house will be officially up for sale. One of the documents we will need is a valid Energy Performance Certificate (EPC). They are valid for 10 years, so if you received one when you bought your home, it could still be valid. Otherwise you will also need to book and pay for one of these before you can sell your home. You should appoint a solicitor to handle the sale, and we can provide a panel of solicitors to you. Please ensure that your home looks its best, both in photos and when people come to view. This is a great time to tidy up any clutter and make sure everything is clean and well-maintained.

SELLING THROUGH AN AGENT In the unlikely event that we don’t find a buyer for your share within the nomination period then you can sell your home on the open market through an ordinary estate agent. You can either sell it as a

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FOR SALE

RESALES

…you’ve decided it’s time to sell

Get in touch with us

Here’s a step-by-step guide to help you through the different stages

Get a valuation

Find your EPC

£ If you haven’t done so already let us know you’d like to sell and ask us for our handy Time to sell guide.

You need a written valuation report from an independent RICS surveyor (RICS is the Royal Institution of Chartered Surveyors).

You need an Energy Performance Certificate (EPC) to sell your home. They are valid for 10 years so if you received one when you bought your home, it could still be valid.

When you’re ready to move on

epcregister.com

Any questions?

To do this, just fill in and send us the Instruction to Sell form in the Time to sell guide. We also need proof of identity for all legal owners before we can sell your home.

How much does selling my SO Resi home cost? SO Resi sales fee RICS valuation Solicitor

1% £220 £1000

(approx)

All of the above are subject to VAT.

Check out our Time to Sell guide for more information and where there’s a list of our recommended surveyors. Get in touch directly to make an appointment.

This is only an indication of costs; your solicitor will provide you with a full list of costs for your sale.

If your EPC is not listed there you just appoint an EPC assessor to create one or ask your RICS surveyor to include one in their report.

We’ll find you a buyer

Your home is sold

FOR SALE

MTVH lease enquiry £150 Managing agent enquiries TBC Notice of assignment £50

By Metropolitan Thames Valley

In this document you can find more detailed information to help you through the process including: • Frequently asked questions • Property description form • Instruction to sell form • Recommended Independent Financial Advisors • Recommended Solicitor

Tell us to go ahead

EPC

Not sure where yours is? Search for it at epcregister.com

Time to sell

Our experienced sales team will help you sell your SO Resi home as quickly and smoothly as possible. We’ll start by appointing a SO Resi resales consultant to look after your sale and answer your questions along the way.

Create the property details Advertise your SO Resi home Arrange viewings Review buyers applications Offer approved buyer your home

Once there’s an approved buyer for your home, solicitors are appointed and work towards completing the sale. • First you appoint a firm of solicitors to act for you. • We produce a Memorandum of Sale write to all parties. • Your buyer’s solicitor checks the paperwork from your solicitor • Your solicitor lets you know when contracts are ready to be exchanged and you agree a completion date • Your SO Resi payments and service charges are payable up to the day of completion. • Before completion, you need to arrange how you’ll hand the keys over to your buyer. We keep you updated throughout and we’re here to answer any questions

What if you can’t sell my home? We have eight weeks or the nomination period detailed in your lease to sell your home, from the day we start marketing. Most homes sell in this time. If not, you can ask us to keep marketing your property or find your own estate agent to sell your share or 100% of the property. If an agent sells your share, a £250+ vat processing fee is payable to SO Resi on completion.

Call our resales team on 020 8607 0550 or email resales@soresi.co.uk

shared ownership home, or sell for 100%, where your solicitor uses the buyer’s money to increase ownership to 100% at the point of sale. If selling at 100%, your home must be sold at the RICS valuation amount or higher. Our share wil be based on the valuation or the higher sale price. If your estate agent sells for less you will have to pay us the percentage share of the RICS value, not of any reduced sale price.

THE LEGAL PROCESS Once you have a buyer, both your solicitor and the buyer’s solicitor will agree an exchange date. When all the legal work is done and the new buyer has signed the contract and the lease (if they are buying a share), you will be invited to “exchange contracts”, which is the point at which you are legally committed to selling the home;and the buyer pays a deposit to the solicitor and is legally committed to buying. The solicitors will agree a completion date (generally a week to a month afterwards, although it can be done more quickly if necessary). On the completion date, the buyer’s solicitor will send your solicitor the rest of the funds. Your solicitor will ensure SO Resi is paid the selling fee on your behalf. Keys can then be exchanged between you and the buyer.

WHAT COSTS ARE INVOLVED? You will have to pay for the valuation (around £250), the EPC (upwards of £55) and your solicitor’s fees (from around £1,500). If you sell your share in the

home through SO Resi we will receive a sales fee of 1% of the total value of the home. If an agent has sold the property you will pay the agent’s sales fee instead, plus a £300 administration fee to SO Resi.

ARE RESALES CONSIDERED DESIRABLE? There is always a price premium involved in buying a brand new property, where everything is new – carpets, kitchens, bathrooms and so on. Resales, which have some wear and tear or need redecorating, can offer buyers the chance to get a beautiful home for less. Because resale homes tend to be cheaper, buyers may be able to afford to buy a larger percentage of a resale property, and buy more shares to get to 100% ownership, which can be very appealing. Another advantage of buying a resale property is that would-be buyers can visit the home and get a real feel for it, whereas many new properties are bought off-plan (before they are built) so it isn’t possible to visit the finished exact home. Buyers also like the fact that they are less likely to have a long wait before they can move in, as they are not waiting for construction to be completed. Older properties often have more of a sense of style and are a part of a more established community than a new build. Also the rental payments on a resale property tend to be lower, as these are based on the original property value plus increases in the Retail Price Index over the years, whereas rental on a new property is based on the current value, which has risen more sharply.

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SHARED OWNERSHIP

yours

ON THE MARKET

SO RESI CAMBERLEY Set in the leafy outskirts of Surrey, SO Resi Camberley is a collection of two bedroom apartments and three bedroom houses in the newly created neighbourhood of Mindenhurst. Nearby are the towns of Camberley, Frimley and Farnborough, all offering stylish shopping, bars and restaurants. There are country parks and peaceful canal-side walks close by plus a number of fun activities such as golf, tennis and go-karting. A number of highly rated primary and secondary schools are in the local area. Access to the M3 provides an easy route into London and other business hubs whilst the train station at neighbouring Brookwood connects to London Waterloo in 35 minutes. All properties come with fully fitted kitchens with built-in appliances, contemporary bathrooms and an allocated parking space. Houses come with front and rear gardens.

From £81,000 for a 30% share with a full market value of £270,000

Camberley, Surrey GU16

soresi.co.uk/find-a-property/camberley

Redhill, Surrey RH1

SO RESI REDHILL Set in the heart of Redhill this stylish collection of one and two bedroom apartments offer the best of both worlds. The light and spacious open-plan apartments come with fully fitted kitchens with integrated appliances, luxurious bathrooms, lots of storage space, and the latest energy-saving features. First floor apartments also come with a private balcony and there is on-site parking too. Outstanding transport links make SO Resi Redhill the perfect base for commuting into London with Redhill railway station just moments away, with fast trains taking around 30 minutes to reach London Bridge station. Redhill has a superb selection From £110,250 of shops, cafes, bars restaurants, open-air market, gyms for a 40% share and schools on the doorstep and there is a handy Tesco downstairs from the development. If you are a lover of the Full market value great outdoors then head to the Surrey Hills which is an Area of £245,000 Outstanding Natural Beauty. Or discover the beautiful gardens at the National Trust’s, Gatton Park and if you fancy some sea air then Brighton is a short train ride away.

soresi.co.uk/find-a-property/so-resi-redhill

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SHARED OWNERSHIP

From £55,000 for a 25% share full market value £220,000

SO RESI WARE SO Resi Ware is a brand-new stylish development of one, two and three bedroom apartments situated in a prime location between Ware’s historic town and the head of the beautiful Lea Valley. Set alongside waterside walks and around a relaxed open-air courtyard with great restaurants and shops, all apartments come with a modern, fully integrated kitchen and bathroom whilst selected properties have a balcony or terrace. There is plenty to do in the local area with miles of walks in waterside terrain and plenty of options to eat, drink and shop in Ware’s town centre only five minutes away. Ware mainline station has trains into London Liverpool street taking only 45 minutes and the M25 is also close by giving further access to the surrounding area and beyond by road. The area has lots of great schools, colleges and nurseries so is an ideal place for famly living.

Ware, Hertfordshire SG12

soresi.co.uk/find-a-property/ware

Maidenhead, Berkshire SL6

SO RESI MAIDENHEAD

£TBC

Set in the heart of the riverside town of Maidenhead, SO Resi Maidenhead is a new collection of one and two bedroom apartments offering a perfect balance between convenience and comfort, positioned perfectly to enjoy everything this vibrant market town has to offer. Enjoy plenty of shops, restaurants, cafes and entertainment options all within walking distance or spend an afternoon strolling beside the Thames. Commuter links are excellent with trains into central London taking just 35 minutes and Reading in as little as 12 minutes. The M4 is just a short distance away giving further travel links by road. There are several excellent schools and colleges in the local area. All apartments offer plenty of space with an open-plan design, a private balcony or terrace plus a fully integrated kitchen and modern sleek bathroom.

soresi.co.uk/find-a-property/so-resimaidenhead

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SHARED OWNERSHIP

yours

ON THE MARKET

SO RESI KENTWOOD PLACE SO Resi Kentwood Place is a new collection of two and three bedroom homes located near the bustling market town of Wokingham offering relaxed, family-friendly living and a great mix between town and country life. Wokingham is in a prime location for a good work-life balance with great connections to business hubs such as London, Reading and Guildford as well as having a great variety of shopping, dining and entertainment options at your doorstep. Heathrow airport is just a 30-minute drive away. There are numerous excellent schools, colleges and nurseries in the local area meaning that many people are choosing to put down roots in the area. SO Resi Kentwood Place is a villagestyle development offering plenty of green space. Houses all come with their own private rear garden, an allocated parking space or car port, a fully fitted integrated kitchen and a contemporary bathroom.

From £133,000 for a 35% share with a full market value £380,000

Wokingham, Berkshire RG40

soresi.co.uk/find-a-property/kentwood

Wokingham, Berkshire RG41

SO RESI WOKINGHAM

GUIDE PRICE

From £134,750 for a 35% share with a full market value £385,000

Set in the warm and welcoming neighbourhood of Wokingham, SO Resi Wokingham offers two and three bedroom houses in an area with plenty to see and do whatever the weather. Many families are choosing Wokingham to settle down as it provides a multitude of options for dining, shopping and entertainment to choose from as well as many top-quality schools, colleges and nurseries for children. SO Resi Wokingham is part of the much bigger Matthews Green Farm development which will eventually offer its own onsite shops and primary school as well as many open green spaces to enjoy. Commuting is easy as business hubs such as London, Reading and Guildford are within easy reach by train and Heathrow airport is just over a 30-minute drive away. Each property benefits from its own private garden, perfect for entertaining, an allocated parking space or garage on selected plots, a modern fully integrated kitchen and a contemporary bathroom.

soresi.co.uk/find-a-property/wokingham

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SHARED OWNERSHIP

SO RESI BRAMPTON PARK

From £96,250 for a 35% share with full market value of £275,000

Brampton Park, Huntingdon PE28

For a relaxing rural lifestyle that’s still within reach of London, Brampton Park, just two miles away from the historical market town of Huntingdon, is the perfect solution. The spacious two, three and four bedroom homes offer generous lounges opening out on to rear gardens and convenient, private off-street parking. All the homes feature a fitted kitchen with integrated washer-dryer, fridge-freezer and dishwasher, plus Zanussi stainless steel oven, matching cooker hood and gas hob. The homes are extremely well finished throughout, including fitted wardrobes in the master bedroom. Brampton Park offers first-rate modern transport connections, including easy access to trains taking just over an hour to reach London King’s Cross. At the weekend you can take a walk in the 900-year-old Brampton Woodland, Cambridgeshire’s second largest wooded area and keen golfers might also like to pay a visit to nearby Brampton Park Golf Club.

metropolitanbramptonpark.co.uk

Welwyn Garden City, Hertfordshire AL7

SO RESI TIMES SQUARE

From £53,750 for a 25% share with a full market value of £215,00

Dakota House and Waldorf house are the latest developments to become available at Times Square in Welwyn Garden City, with a selection of one and two bedroom apartments.The Times Square development is just a 10-minute walk from the town centre which is bursting with shops, coffee shops, restaurants and gastropubs. The railway station, with services to London King’s Cross in just 25 minutes, is also close at hand, making it an ideal choice for commuters. The apartments have spacious open-plan layouts, some featuring a private balcony, and every home has an allocated parking space. Stylish contemporary kitchens are fitted with a range of appliances, including a useful washer-dryer. Sky+HD connections are ready to be activated in the living room and master bedroom and the large atrium has Wi-Fi and a concierge service. Welwyn Garden City is surrounded by rolling Hertfordshire countryside and boasts an incredible range of leisure activities, including three golf courses, a dry ski slope and a velodrome.

soresi.co.uk/times-square

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LEASE

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ABOUT MY LEASE ALL SHARED OWNERSHIP PROPERTIES ARE SOLD AS LEASEHOLD, IN THE SAME WAY AS MOST PRIVATE SALE FLATS. LEASEHOLD OWNERSHIP CONVEYS THE RIGHT TO OCCUPATION AND USE OF THE HOME FOR A LONG PERIOD, AND IT CAN BE LEGALLY BOUGHT AND SOLD BY THE LEASEHOLDER DURING THAT PERIOD

WHAT IS A LEASE? The lease is a legal agreement between the leaseholder and the landlord, in this case the housing association behind SO Resi, Metropolitan Thames Valley. The paperwork shows exactly what property you are buying on a plan, ie the flat or house, plus any additional private areas like a balcony, terrace, garden or parking space. Also set out in the lease will be the obligations of both parties, often referred to as covenants. The leaseholder has obligations to make the payment to Metropolitan Thames Valley, service charge and any ground rent if applicable. The leaseholder would agree not to sub-let the property and to give the landlord first refusal when they want to sell the home. There may also be a covenant preventing pet ownership (or requiring permission) and setting out more general standards to keep the neighbourhood pleasant, such as not parking commercial vehicles or caravans or not keeping chickens. The landlordâ&#x20AC;&#x2122;s obligations include insuring the property (but not your home contents), maintaining any communal areas and not interfering with your use and enjoyment of the home other than in specific circumstances.

HOW LONG IS A LEASE? If you buy a new SO Resi shared ownership home, the lease will be for 125 years. If you are buying a resale shared ownership property, it will be for what is left on the lease â&#x20AC;&#x201C; so, for example, if the person you are buying from purchased the new leasehold 15 years ago, you would be buying a 110-year lease. Because you are buying the right to occupy the property, rather than the physical land and buildings, the length of the lease affects the resale value considerably. In general, there is no reduction in value for leases over 90 years, but once you get to below 80 years it becomes much more expensive to extend the lease and below 70 years mortgage companies become reluctant to lend on the home, so it will drop in value and be harder to sell. For this reason you should look into extending the lease if it is nearing the 80-year mark.

HOW CAN I EXTEND THE LEASE? Under the 1993 Leasehold Reform Act, flat-owners who have owned the whole of a property for two

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years have a statutory right to get 90 If you buy a new years added to their lease at a fair market price. SO Resi shared This also applies to shared ownership ownership home, purchasers who have staircased to the lease will be for own 100% of the property. There is a formal legal process to go through, 125 years. including instructing a solicitor and obtaining a valuation of the home. Not all shared ownership purchasers decide or are able to staircase to 100%, so for this reason, SO Resi also offers an informal lease extension process that is open to all shared owners, regardless of the amount they own or the length of tenure, provided they have not breached their lease. The extension is also for 90 years and the legal costs are likely to be lower. The informal scheme can be used by 100% owners as well if they wish.

LEASE

If you have purchased a share of a house, you will normally be granted the freehold at the point you staircase up to 100%.

WHY SHOULD I EXTEND WHEN I STILL HAVE A LONG LEASE? As the law stands at the moment, it becomes much more expensive to extend the lease on a home that has less than 80 years left on the lease. This is because after this point something called “marriage value” has to be considered. This takes into account the increase in value that will result in extending the lease, and splits that profit between the leaseholder and the freeholder. For example, the typical cost to extend the lease on a £200,000 flat by 90 years would be £8,500 if the lease had 85 years left to run, £16,500 if it had 70 years to run and £26,500 with 60 years left.

The Law Commission, asked to look into leasehold reform by the Government, has proposed that the marriage value be abolished, but it is not yet known if that recommendation will be accepted, so anyone nearing the 80-year mark on a lease is still advised to look into extending.

WILL MY PROPERTY ALWAYS BE LEASEHOLD? Shared ownership flats will remain as leasehold properties as this tenure ensures that the communal areas and structural items like the roof will always be properly maintained and the costs shared fairly between all residents. If you have purchased a share of a house, you will normally be granted the freehold at the point you staircase up to 100%. If you wish to consider a lease extension, please contact the Home Ownership Team at homeownership@metropolitan.org.uk

SOResi.co.uk 19

SHARED OWNERSHIP

yours

ON THE MARKET

SO RESI CLAPHAM PARK This development of one and two bedroom apartments offer stylish urban living, a short distance from the bustling and vibrant Clapham High Street, Brixton, Balham and Streatham. All the apartments have spacious and airy open-plan living areas, with beautiful natural oak flooring and every home comes with a private balcony or terrace. The clean and contemporary kitchens have built-in appliances, including an integrated fridge-freezer, dishwasher and washer-dryer. The master bedrooms feature full floor-to-ceiling sliding wardrobes to provide plenty of storage space. The area has fantastic travel connections; a short 20-minute walk brings you to Clapham South station where you can reach central London, via the Northern Line, in around 20 minutes. Clapham Junction also offers services into Waterloo and Victoria in less than 10 minutes. Despite the ease of commuting, the area around the homes has been designed to incorporate as much green space as possible, with treelined avenues, lawns and peaceful green courtyards.

From £109,250 for a 25% share with full market value of £437,000

Clapham, South London SW4

soresi.co.uk/find-a-property/so-resi-claphampark

Bracknell, Berkshire RG12

SO RESI MILL PARK

From £90,000 for a 40% share with a full market value £225,000

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SO Resi Mill Park is a modern collection of one and two bedroom apartments situated in Bracknell, Berkshire. A multitude of shopping, dining and leisure opportunities are right on the doorstep with Bracknell town centre only a 10-minute walk away. Popular Mill Hill and Mill Pond are also close by and the development is also surrounded by nature reserves giving a great balance between town and country living. A number of great schools and nurseries are also in the local area. SO Resi Mill Park is ideal for commuters as there is easy access into Reading and central London via Bracknell railway station plus the towns of Windsor and Maidenhead are only a short drive away. Most apartments benefit from a private balcony or patio and have a fully integrated kitchen and contemporary bathroom. There are also communal landscaped spaces for all residents to enjoy.

soresi.co.uk/find-a-property/mill-park

SHARED OWNERSHIP

SO RESI FORSTER OAKS

From £86,100 for a 35% with full market value of £246,000

Stevenage, Hertfordshire SG1

Forster Oaks offers a perfect mix of urban convenience and rural fresh air, with parks and woodlands just a short walk away. The development offers one and two bedroom apartments set in four main blocks, with screening from mature trees and open space. The homes have either Juliet, full or wraparound balconies plus allocated parking and cycle storage enables residents to make the most of Stevenage’s exceptional facilities for cyclists. The station is around seven minutes by car or 13 minutes by bike away, and has services reaching King’s Cross in 23 minutes For leisure, Stevenage has a considerable amount to offer, from comedy, music, drama, opera and dance at the Gordon Craig Theatre to blockbusters in the IMAX cinema, with more facilities to come as part of the town’s ongoing regeneration scheme, which will make Forsters Oak even more desirable.

soresi.co.uk/find-a-property/forster-oaks

Crowthorne, Berkshire RG45

SO RESI CROWTHORNE

£55,625 for a 25% share with a full market value £222,500

SO Resi Crowthorne offers a selection of one and two bedroom homes ideally located in the beautiful Berkshire countryside. Set amongst natural parkland, these properties offer excellent countryside living but are also close to local amenities as well as having excellent transport links. You will be spoiled for choice with a multitude of options for dining, entertainment and shopping in the surrounding towns of Wokingham, Bracknell and Ascot but will still be far enough away to enjoy the tranquillity of the rural area with stunning Swinley Forest right next door to the development as well as many large green areas to relax in. Commuting is easy with trains into London Paddington taking under 45 minutes, Guildford in just half an hour away plus both the M3 and M4 close by for road access to the South and West. All homes come with a fully integrated modern kitchen, contemporary bathroom, an allocated parking space and a balcony.

soresi.co.uk/find-a-property/crowthorne

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FINANCE

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MORTGAGES JON LORD, MD AT AWARD-WINNING SHARED OWNERSHIP MORTGAGE BROKER METO FINANCE, GIVES HIS FINANCIAL TOP TIPS ON BUYING MORE SHARES IN YOUR SO RESI HOME

SHOULD I BUY MORE SHARES IN MY SO RESI HOME? That fixed rate has ended, so what now, it’s shared ownership so there’s little I can do, right? Wrong – You have even more options with shared ownership… So, let’s set the scene – you took a two year fixed rate and its due to end in two months time, at which point you’ll automatically drop on to the lender’s ‘Standard Variable Rate’– it’s likely this will cost more per month. About now, two months before it ends is the right time to start planning and you have three basic options. Firstly, as a shared ownership customer you can consider buying more shares in your property. By buying more shares you could reduce your overall costs by removing some or all of your so-resi payment. Its easy to find out if this is possible, just visit canistaircase.com You need to decide whether you want to buy more shares before moving forward with either of the next two options. The next option is a remortgage, now this could either be for the same amount as your current mortgage or if you’ve decided to buy more shares you’d borrow your current amount plus an extra amount for the additional shares in your home. It’s worth mentioning that you may not need to input any cash to buy more shares, it can often be done using the existing equity in your home. Seeking advice on remortgaging is by far the most effective option, it will give you assurance of getting the mortgage most suitable for you. Assuming you choose an Adviser that works with the whole of the mortgage market, then you’ve got someone else doing all the legwork to find the best lender. You receive advice and a recommendation on the very best new mortgage product to suit your needs. The whole remortgage process usually takes anything between 3 to 6 weeks from start to finish. Often these mortgage products come with no upfront costs and free legal fees or cashback – making it even more attractive. Furthermore, some brokers like Metro Finance, for example, will charge no broker fee for remortgages. The final option you have is the lesser mentioned ‘Product Transfer’. It’s highly likely that your current lender will have new mortgage products available to you. If you use this option there’s usually no need for valuations and no need for affordability checks – just pick a new product and off you go.

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The ‘Product Transfer’ can be done by you directly with the lender, but….if you choose a broker like Metro Finance to do this for you, we won’t charge a broker fee and we’ll also provide a full advice service to ensure you are still getting the best product – in other words we’ll tell you what else is out there, before you commit to picking a product from your existing lender. We often get asked ‘When can I buy more shares?’ The short answer is anytime – there are no restrictions on when you can buy more shares, but there are some points to consider. If for example you are currently two years into a fiveyear fixed rate and decided to remortgage and buy more shares. It’s likely your current lender would charge a financial penalty for leaving. So perhaps the best the time to buy more shares would be when your fixed rate ends. You’ll also need to think about whether any cash input will be needed. The easiest way to visualise this is to imagine you are buying the remaining shares just like a new purchase. Let’s say you originally purchased a £200,000 home on a 50% share at £100,000 and used a 5% deposit of £5000. Now, two years later, let’s say it’s not increased in value and you want to move to 100% ownership. Effectively, you are looking to buy the other 50% at £100,000 and because it hasn’t increased in value, you need a new deposit of £5000, which combined with the equity you already have from the initial deposit, makes a new total of £10,000. Which happens to be the minimum a new lender would require – 5% of the total £200,000 value - ignoring any reduction in the current mortgage balance. If the same property had increased in value to £211,000, then you wouldn’t need any extra cash deposit*, the equity of £10,500 you currently own would be enough to satisfy a lender requiring 5% of the full value. Those eagled eyed mathematicians will notice there is a *£50 shortfall on the deposit here, I’d assumed this would be manageable in order to make the example simpler... In reality, that’s a key point here. Staircasing itself in principle is very simple, however, getting it done in the most monetary efficient way can be confusing. So... even if it’s just to confirm you’ve got your numbers right, speak to your Mortgage Adviser and make sure they are specialists in shared ownership. metrofinance.co.uk SOResi.co.uk

FINANCE

NOTE in all examples we only talk about cash input in respect of deposits required. You may have other costs such as legal fees, survey fees, Stamp Duty.

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CASE STUDY

real

REAL LIFE

TOBY AND CHLOE CARTER FIRST DISCOVERED SHARED OWNERSHIP NINE YEARS AGO WHEN THEY BOUGHT THEIR FIRST HOME. THEY HAVE JUST UPSIZED FOR THE SECOND TIME INTO THEIR THIRD SHARED OWNERSHIP PROPERTY, AT HATCHWOOD MILL IN WOKINGHAM BY SO RESI

ine years ago, Toby and Chloe Carter, both 26, bought their first shared ownership home – a one bedroom apartment in Reading – not knowing that less than a decade later they would be able to purchase their “forever” four bedroom family home in the leafy village of Winnersh, Surrey. Toby explains, “In 2010, we were living with our parents and knew we wanted our own space, but were aware we couldn’t afford to buy a home on the open market. I researched and discovered shared ownership, which meant we would only need a 5% deposit to purchase a home.” Toby and Chloe found a one bedroom apartment at Kennet Island in Reading available to purchase through Thames Valley Housing, which recently rebranded its shared ownership homes to SO Resi. The full value of the home was £125,000. They bought a 40% share for £50,000 and put down a deposit of just £5,000. “We paid monthly mortgage payments on the share we owned and payments to TVH on the remaining share. Securing our home with such a small deposit meant we were able to get on the property ladder much sooner than if we’d saved for a deposit for a home on the open market.” The couple spent five happy years there, but after finding out they were expecting their first child, decided it was time to upsize. “We got the apartment revalued after we decided to sell, and found it had increased by £100,000 partly due to the announcement of the arrival of Crossrail to Reading. We were ecstatic as we’d made a great profit of £40,000 and were in a position to take the second step.” In 2015 Chloe and Toby bought a two bedroom maisonette, also in Reading, again through shared ownership with TVH. The full value of their second home was £300,000 and they bought a 40% share for £120,000. Chloe adds, “We only needed £6,000 for a deposit but because we’d made such a great profit on our first home, we were able to put down £25,000 which meant our monthly mortgage payments decreased. The home was perfect for us and our daughter Ellie and we had just the right amount of space for all three of us.” A couple of years after moving in, the couple noticed a new development, Hatchwood Mill, being built just down the road offering shared ownership homes through SO Resi. With plans to expand their family they decided to take a look. “Shared ownership had already worked out so well for us, we didn’t want to miss out on a chance to upsize again in an area we loved. We had still been saving each month as shared ownership gave us the flexibility to make sure we didn’t stretch our financial

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state too much, and having made a £4,000 profit on the two bedroom maisonette, we were able to put down a deposit on a home at Hatchwood Mill.” The full value of Toby and Chloe’s current home at Hatchwood Mill is £527,500. They bought a 40% share for £211,000, putting down a £32,000 deposit. “We never thought we’d be able to buy our ‘forever home’ at this point of our lives, but shared ownership has enabled us to “WE NEVER do just that. We really wanted THOUGHT WE’D a brand new home, and to be the first ones to live in and love it. BE ABLE TO BUY We now have a spare bedroom for OUR ‘FOREVER HOME’ guests, as well as a bedroom we’re AT THIS POINT OF OUR converting into a study. The large garden will be fantastic for us in the LIVES, BUT SHARED summer too.” OWNERSHIP HAS Their new home is also ideally ENABLED US TO DO located for access into work. Both work in the Wokingham borough; Toby, JUST THAT.” a designer for a ceiling manufacturing company, has a commute of just 15 minutes by car. Chloe, a PA at the NHS, enjoys a a 10-minute drive into work. The area is well connected, with nearby Winnersh railway station providing direct routes to Wokingham (six minutes) and Reading (12 minutes). From Reading mainline station to Paddington Station, current services take just 27 minutes. The superb local parks, bars and restaurants were also a real attraction for the family. Chloe said, “We are so proud to be living in our dream home at such a young age. Without shared ownership, we would still be struggling to save for a large enough deposit to buy on the open market. We’ve also signed up to So Resi Plus, which means we can buy more shares of our home each year without the cost of arranging a solicitor each time we purchase more of our home – the goal is to eventually For more information own 100% of our house. visit soresi.co.uk or For us it’s been a fantastic way to not just get on to call the sales team on the property ladder, but to climb it!” 020 8607 0550

HOW THE FIGURES STACK UP • Full market value - four bedroom house - £527,500 • Share (40%) - £211,000 • Deposit - £32,000

HELP TO BUY

yours

HELP TO BUY: EQUITY LOAN

WHAT IT IS AND HOW IT WORKS The Help to Buy: Equity Loan is a Government-backed scheme to help first time buyers and home movers by loaning them additional funds so they can buy a new home with just a 5% deposit. The scheme runs in its current form until the end of March 2021. There will be an entirely new Help to Buy scheme launched in April 2021, which will be available to first time buyers only

The scheme in England works by providing a loan of up to 20% of the property price, interest-free for five years. The buyer must provide a minimum of a 5% deposit, which means with a 20% loan from the Government they need only a 75% mortgage, which would have a lower interest rate and be easier to obtain than a high loan-to-value (LTV) mortgage.

The Help to Buy: Equity Loan is secured on the home like a mortgage, but apart from a £1 a month administration charge there is nothing to pay until the end of five years. After five years, interest will be charged on the loan. When you sell the property, or pay back the Equity Loan, you must pay back the same percentage of the value of the house as you initially borrowed (not the monetary amount). The loan must be paid back within 25 years.

and is set to run for just two years. Under the new scheme, while the loan will still be up to 40% in London and up to 20% in the rest of England, the homes that can be purchased will be subject to regional price caps which will be set at 1.5 times the average forecast regional first time buyer price. These caps will range from £186,100 in the North East and £255,600 in the West Midlands to £437,600 in the South East and £600,000 in London.

To reflect the higher property prices in the capital, buyers in any of the London boroughs can take out a maximum 40% loan through Help to Buy London, meaning that with the minimum 5% deposit they would only need a 55% LTV mortgage.

ELIGIBILITY RULES FOR THE HELP TO BUY: EQUITY LOAN • The scheme is open to UK residents aged between 18 and 75 who are either first time buyers or are selling their home to move. There are no maximum income rules • You cannot use Help to Buy: Equity Loan if you have other property, and you can’t use it for a buy-to-let property. You must be planning to live in the home, and permission to rent it out later is only given in exceptional circumstances • You must provide at least a 5% deposit and you must take a mortgage out for at least 25% of the value of the property (ie you cannot be a cash buyer) • The home you are buying must be a brand new house or apartment from a developer who is part of the scheme • The property cannot cost more than £600,000. All houses must be freehold, but apartments can in some instances be leasehold. You can’t use a developer’s part exchange scheme

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yours

ON THE MARKET

SO RESI HACKNEY CORNER Set in a thriving cosmopolitan neighbourhood in the heart of London’s authentic East End, SO Resi Hackney offers a contemporary selection of one, two and three bedroom apartments nestled between Hackney and Hoxton Square and close to the green space of Shoreditch Park. The development is surrounded by hotspots for culture, art, fashion and food leaving you spoilt for choice and benefits from excellent transport links to the City, central London and Canary Wharf. The future-focused development is built near a waterside promenade space and close to popular shops and eateries for the ultimate in convenience. Each property comes with a fully integrated kitchen and modern bathroom as well as a private balcony or terrace. A communal concierge service is available for all residents and a communal terrace on the ninth floor gives an excellent outdoor space to relax in.

Private sale only. From £660,000

Hackney, East London N1

soresi.co.uk/find-a-property/hackneycorner

Alperton, North West London HA0

SO RESI THE RISE

From £320,000 with Help to Buy available

These contemporary urban one, two and three bedroom apartments are close to the revitalised Grand Union Canal at Alperton, a vibrant area of north west London with great transport links and leisure opportunities. The apartments offer a high standard of accommodation and the fully fitted kitchens include a Bosch brushed steel oven, gas hob and matching brushed steel splashback, as well as an integrated fridge-freezer and dishwasher and washer-dryer. Alperton is an up-and-coming area, with the nearby canal perfect for weekend walks or bike rides. The surrounding area has plenty to offer in terms of local shopping, including a large Sainsbury’s supermarket just a short walk away. Also within easy cycling distance or a short hop on the tube is Ealing Common, one of west London’s best-known open green spaces with 47 acres to explore.

therise.london

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HELP TO BUY

SO RESI BRAMPTON PARK

From £320,000 with Help to Buy available

Brampton Park, Huntingdon PE28

metropolitanbramptonpark.co.uk

Welwyn Garden City, Hertfordshire AL7

SO RESI TIMES SQUARE

From £299,950 with Help to Buy atvailable

soresi.co.uk/times-square

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SOResi.co.uk 27

CASE STUDY

real

REAL LIFE

CJ GLOVER MOVED BACK HOME WITH HIS PARENTS AFTER FINISHING UNIVERSITY AND WAS KEEN TO FIND A PLACE OF HIS OWN AND LIVE INDEPENDENTLY AGAIN, BUT THIS SEEMED A REMOTE PROSPECT UNTIL HIS MUM SHOWED HIM AN ARTICLE ABOUT SO RESI’S SHARED OWNERSHIP HOMES AT NEARBY CARDEW COURT IN BRACKNELL. THE MODERN APARTMENTS AND CONVENIENT LOCATION AT THIS DEVELOPMENT FITTED THE BILL PERFECTLY AND CJ MOVED QUICKLY TO BUY THE LAST TWO BEDROOM APARTMENT

to London for days and nights out. J, who runs a sports coaching company CJ added, “My home is really high quality called In2Sport, said, “Bracknell is my and brilliant value. I enjoy having a home town and I wanted to stay in the balcony and with a second bedroom area to be close to my family and it’s easy for friends and family to friends, as well as my work. I stay. It’s ideal for me - I’m five knew it would be difficult to minutes from my parents’ buy a home because I’m house and from my work. self-employed and wanted Work takes up most of to live by myself. Even my time, so it was very though I’d been saving important to be close hard for two years, I by.” couldn’t afford to buy CJ found the a property outright in process of buying a Bracknell, so shared shared ownership ownership was a home very great option.” straightforward. He In 2017 CJ says: “It was very bought a 55% simple and quick. in his apartment Everyone at SO Resi with a full market sales was friendly price of £287,500 and helpful, and once for £158,125 and my mortgage was although he only approved, everything needed a 10% deposit, progressed very smoothly. he put down £16,000 As my apartment was new funded by his savings. and ready to move into, it was His monthly payments were “I ALWAYS WANTED TO just a case of picking up the keys originally around £600 for his OWN MY HOME OUTRIGHT, and moving in. mortgage and a payment of £394 BUT I COULDN’T AFFORD It feels great to have my own space to SO Resi on the share he didn’t own, TO DO THIS INITIALLY. THAT’S and live independently again. I couldn’t have which included service charges. WHAT’S GREAT ABOUT SHARED bought a home in this area without shared Since buying his home two years ago, CJ OWNERSHIP, IT ALLOWS YOU TO ownership – it’s made a huge difference to has increased his mortgage and now owns BUY IN STAGES, TO FIT YOUR my life.” 100% of his property. He said, “I always FINANCIAL CIRCUMSTANCES All the homes at Cardew Court have wanted to own my home outright, but I – IT’S PERFECT FOR been sold, but SO Resi has a wide selection couldn’t afford to do this initially. That’s what’s HOMEBUYERS WHO NEED of shared ownership homes across London great about shared ownership, it allows you to A HELPING HAND AT THE and the South East. buy in stages, to fit your financial circumstances START” – it’s perfect for homebuyers who need a helping For more information, please visit hand at the start.” sharedownership.co.uk or call 0208 607 0550 Like all SO Resi properties, CJ’s apartment has an excellent specification. The living space is designed in a contemporary open plan style and opens HOW THE FIGURES STACK UP on to a balcony. A full range of kitchen appliances, fitted wardrobes in the main bedroom and an allocated • Full market value – two bedroom apartment - £287,500 parking space were all included within the price. • Initial share (55%) - £158,125 Cardew Court is a short walk from Bracknell town • Deposit - £16,000 centre and close to the station, making it easy to travel

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simple

GLOSSARY OF TERMS

CONFUSED BY FINANCIAL ACRONYMS AND INDUSTRY TERMINOLOGY? OUR HOME BUYING GLOSSARY IS HERE TO MAKE THE PROCESS A WHOLE LOT EASIER TO UNDERSTAND

AGREEMENT IN PRINCIPLE The initial document your lender will give you outlining the amount you are likely to be lent. An agreement in principle is not a guarantee of getting a mortgage. APR APR stands for annual percentage rate. It is the interest rate you’d pay over a year. It takes into account not just the interest on your loan but also any other additional charges. ARREARS This is a term used to describe payments that have not been made on time. BASE RATE The interest rate set by the Bank of England. Lenders use the Bank of England base rate as a basis to set their own charges. BROKER A broker is someone who gives you advice on your mortgage. Some are independent, while others work for particular lenders. BUILDING SURVEY A survey carried out by a qualified surveyor to spot any structural problems or faults in the home you are buying. COLLATERAL Something of value that is offered as a guarantee against a loan. With mortgages, your home is collateral

COMPLETION The finalisation of the sale. Completion

day is when all money is transferred and you become the legal owner of your new home. CONVEYANCING The legal process of transferring ownership of a property. DISBURSEMENTS These are additional charges incurred during the home buying process such as Stamp Duty and Land Registry charges. You must give the money to your conveyancer or solicitor who will then pay the charges on your behalf. EARLY REPAYMENT CHARGE This is an amount of money you have to pay a lender if you decide to move mortgage providers or if you pay off your mortgage quicker than expected. EQUITY The difference between the value of the property and the value of the mortgage you have secured. EXCHANGE OF CONTRACTS This is when you exchange contracts with the seller. When this has happened, both sides are legally bound to complete the transaction. FREEHOLD A freehold is when you fully own a property and the land it stands on. GAZUMPING When a seller accepts an offer and then later on rejects it in favour of a higher offer from another bidder. GUARANTOR A person, usually a parent, who guarantees that you can pay your mortgage repayments. You often need a guarantor if you are struggling to get a mortgage based on your own income. If for some reason you cannot pay your mortgage, your guarantor has to pay it for you.

HIGHER LENDING CHARGE If you take out a large mortgage on a property, some lenders charge you an extra fee. This is because the more money you borrow the more of a risk the lender is taking. LAND REGISTRY FEES This is a fee you have to pay in order to register your ownership of the property with the Land Registry. LEASE A type of contract where you buy the right to occupy the property for a fixed period of time. You usually have to pay annual ground rent each year. LTV This stands for loan to value – the ratio between the amount of money you have taken out as a loan and the valuation price of the property. LUMP-SUM REDUCTION In order to reduce your mortgage, you can make a lump-sum reduction. This is where you pay more than you owe each month in mortgage repayments. REDEMPTION Paying off your mortgage in full is known as redemption. REPAYMENTS The amount you have to pay back each month to your mortgage provider STAMP DUTY Stamp Duty is a shortened name for Stamp Duty Land Tax. This is an amount of money that the Government taxes you when you purchase a new property. Your solicitor or conveyancer will organise the payment for you. TITLE DEEDS The legal documents that outline your rights and liabilities in relation to your new property. The title deeds also act as proof of ownership.

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