Affordable Housing - HomeBuy Direct

 

 

Help with buying your own home with HomeBuy Direct

How Does HomeBuy Direct Work?

This option offers equity loans towards the purchase of a new build home on selected developments.

How does it work?

You buy a minimum of 70% of the market value of a property. An equity loan of up to 30% is provided to assist your purchase. There are no payments on the loan for the first five years. After five years there is a fee of 1.75%, which increases annually in line with inflation. You will need to raise a mortgage to purchase through this scheme. You can also use any savings you may have to contribute as a deposit towards your share.

What are my options after buying through HomeBuy Direct?

You can buy additional shares at a later date until you own 100%. This is calculated on the current market value at the time that you purchase the additional shares.

If you wish to sell your property, the equity loan is repaid as a percentage of the market value at the time of sale.
For both products, when repaying the equity loans, you have to share any increase in the property's value with the equity loan provider.

Who Is Eligible For The Scheme?

HomeBuy Direct is designed for those who cannot afford to buy a home outright without financial assistance. You will need to be either a Solihull Council or Housing Association tenant or on the Council's Housing Register and nominated by the Council as being in housing need. To join the Council's Housing Register contact the Housing Options Team at Solihull Community Housing.

What developments are available in the borough?

The scheme  provides opportunities to purchase properties in Central and North Solihull from Miller Homes and Bellway Homes.

Can I Buy With A Partner Or Close Friend?

You may jointly buy a home with somebody else providing your joint income and savings do not mean that you could afford to buy your own home in the private market. You will also need to speak to your solicitor about the implications this may have for you and possible arrangements for succession.

What Initial Costs Will I Incur?

You will incur all the standard costs for purchasing a property; these include legal fees, valuations costs and stamp duty (up to the full market price as if you were buying it off an estate agent). You will need savings of at least £3,500 to pay for these.

What Will I Pay After I Move In?

You will be responsible for mortgage payments to the bank or building society, and insurance for the building. You will also have to pay your own bills, including electricity, gas, telephone, council tax, water rates and other bills. You are also accountable for maintaining and repairing your home.

What Do I Do Next?

To find out more information or to apply for  HomeBuy Direct  in Solihull, please contact Orbit Homebuy Agents on 0345 850 20 50 or visit http://www.orbithomebuyagents.co.uk/main.cfm 

Contact details

Telephone: 0121 704 8486
Email: housingstrategy@solihull.gov.uk