SHARED OWNERSHIP

simple

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 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.

SO INVITING

SO Resi is about opening the door to homeownership for as many people as possible. You need to have a household income of less than £80,000 (£90,000 in London), 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.

making home ownership possible

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 FOUR Exchange contracts and complete FIVE Pick up the keys to your new So Resi home

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

Your Mortgage Monthly

Your So Resi payment

Monthly

Your Service Charge Monthly

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

3. Typical monthly payments

Example based on a £300,000 home

£300k

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. 10%

If you paid a 10% deposit of £7,500 your mortgage would be on the remaining £67,500. 25% = £75k

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

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 with an independent financial adviser (IFA) to help you choose the right mortgage. The monthly cost will depend on how much you are borrowing and the interest rate. Some mortgages are fixed rate, so the amount you pay won’t change for a defined period of time, others are variable, so you will have to pay more each month if interest rates go up. It’s very important to pay your mortgage each month as your home can be repossessed if you don’t. You pay your mortgage until the amount you have borrowed and the interest has all been paid, usually in 25 years.

About your SO Resi payment: This monthly payment is for the share of your home that you don’t own, and you must pay it while you live there, or until you own 100% of it. The bigger the share you own, the lower the SO Resi payment is. It doesn’t cover services, repairs or maintenance to your home; SO Resi uses the funds to build new housing. Payments go up each year based on inflation plus a fixed percentage set out in your lease agreement. The Retail Price Index (RPI) is used to measure inflation, so if the RPI is 3% and the increase set out in your lease is 0.5%, your SO Resi payment for that year will go up by 3.5%.

About your service charge: This covers the costs of looking after communal areas of the building you live in, including buildings insurance, cleaning, repairs, gardening and window cleaning. You need to pay the service charge while you live there, even if you own it 100%. It is likely to go up over time as the costs of insurance, work and materials go up. It only covers shared areas of the building; you are responsible for paying for repairs, maintenance and cleaning inside your home.

About everyday costs: As long as you live in your home you will have to pay household utility bills such as water, gas and electricity, as well as council tax and insurance for your household contents. You also need to pay for repairing and replacing things inside your home, from the boiler to the kitchen appliances. There may also be ground rent to pay.