Buying an affordable home in the South Hams or West Devon – your quick read guide
From shared ownership to Rentplus and discount market sales, read our guide to find out your options to buy an affordable home in the South Hams or West Devon.
1) Thinking about buying a shared ownership home in the South Hams of West Devon?
Are you wondering what is shared ownership? Shared ownership is a scheme that enables households to buy a share in a property (usually between 20% and 75% of the home’s value). A subsidised rent is payable on the remaining share, which held by the Registered Provider (normally a housing association). You’ll also have the ability to purchase additional shares in the future if you want.
Is it affordable?
The combined monthly cost of your mortgage and rent will normally be less that if purchasing a property outright. Shared ownership also gives you the chance to get on the property ladder with a lower mortgage.
Am I eligible for shared ownership?
To be eligible for a shared ownership property, the annual household income can be no more than £80,000.
For more information, take a look at www.helptobuyagent3.org.uk/help-to-buy-schemes/shared-ownership/
Read these frequently asked questions about shared ownership https://www.helptobuyagent3.org.uk/help-to-buy-schemes/shared-ownership-faqs/
How much could you borrow? Take a look at this shared ownership mortgage calculator https://www.helptobuyagent3.org.uk/help-to-buy-schemes/mortgage-calculator/
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2) What is Rentplus?
Rentplus is a new affordable housing option for anyone who currently does not have the means to purchase a property on the open market. It is a hybrid product offering an opportunity to purchase a home through a combination of Affordable Rent and a 10% gifted deposit.
How does Rentplus work?
Properties are let to a Registered Provider (usually a housing association) on a 20 year lease and then rented out. If you join the scheme, you will have five-year renewable tenancy agreements at an Affordable Rent (capped at LHA rates). You’ll then be offered the opportunity to purchase the property after 5, 10, 15 or 20 years. If you decide to purchase, you will receive a 10% gifted deposit of the market value of the property.
If you cannot purchase the property after 20 years, the Registered Provider will use their ‘best endeavours’ to find alternative accommodation, either within their own stock or within the private rented sector. All Rentplus properties are sold after 20 years. If the occupier does not decide to take up the option of buying it, the Registered Provider will have the opportunity to purchase at a 10% discount. Where this option is not taken up, the property is sold on the open market with 7.5% of sale proceeds provided to the local authority to reinvest in affordable housing.
Is Rentplus a good choice for me?
Rentplus offers an alternative for those wishing to purchase in the future but unable to provide a deposit at the current time. In particular, this scheme may suit those who are at the start of their careers who cannot afford to purchase a home and would find it difficult to save for a deposit if paying private sector rents.
For more information, take a look at www.rentplus-uk.com/
Read questions and answers about Rentplus https://www.rentplus-uk.com/about-us/faqs
3) Discount market sale
When councils and housing associations build new homes for sale, some are sold at a 25%-50% discount. This is known as a Discounted Sale.
You must usually have a local connection to the area the home is in if you want to use the scheme.
For more information, please email [email protected]
Register here: www.southhams.gov.uk/housing or www.westdevon.gov.uk/housing and click the link titled Discounted Properties Register