As we offer a number of different low cost home ownership products, we have organised our questions by product. Click a product to see a list of questions.
Homebuy FAQs:
What is Homebuy?
Homebuy enables people currently in social housing in Tower Hamlets to buy a home of their own by providing financial assistance towards the purchase of a home on the open market. The idea is to free up social housing for others in housing need.
How does Homebuy work?
It's simple. When you have found a home you like, you have to be able to raise 75% of the purchase price (through a mortgage and/or personal savings). We then lend you the remaining 25%. You have nothing to repay us as long as you own the house. When you sell the house, you repay us 25% of the market value of the house at the time of selling. You need to contact us in order to see if you are eligible.
Do I qualify for Homebuy?
There are eight points you must satisfy to be considered for Homebuy. Click here to view.
What kind of property can I buy?
You can buy a new or existing house or a flat. The property you select must be in good condition and suitable for you to live in straightaway, and it must be situated in Tower Hamlets.
How much can I borrow?
This depends on your individual requirements. We may set an upper limit on the house price you can pay, and what we are prepared to lend.
Can I buy the house I am in?
No. The idea of homebuy is to free up the home you currently live in for others in housing need. The home you want to buy must be for sale on the open market.
Can I buy jointly with someone else?
Yes, provided that your joint income and savings do not enable you to buy a home outright, and provided at least one of you meets the eligibility requirements of the scheme. Click here to get the basic eligibility form.
When will I know I can get funding?
We will confirm funding when we are happy that you satisfy our eligibility criteria and that you can raise a mortgage for your share. The first step is to complete a basic eligibility form (click here to get the form).
How will I work out if I can afford to own a home?
To calculate what it will cost you to own a home of your own, click here. Before deciding to buy a property, you should take independent financial advice to get a clear idea of the costs and obligations of home ownership. Click here to get a list of advisors who you can contact.
How do I apply?
The first stage is for you to complete a basic eligibility form. Click here to get the form.
Can I carry my loan over to another property?
No. When you sell your property, you will have to repay us 25% of the sale price of the property. Whatever remains after settlement of your mortgage is your money to do whatever you like with - for example, you may wish to use it towards the purchase of your next home.
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New Build Homebuy:
What is New Build Homebuy?
It is a scheme that offers people a loan to help buy a newly built home on a specific housing development.
What's the difference between Homebuy and New Build Homebuy?
The way the loan works is identical to Homebuy, but with New Build Homebuy, properties offered are in a specific location. Also, eligibility may be different.
Where are New Build Home Buy properties available?
At present, we have a number of properties available. To view them, click here.
Who is eligible for New Build Homebuy?
Applicants must be first time buyers. Unlike Homebuy, applicants do not have to be council or housing association tenants. To find out if you are eligible, click here to get the basic eligibility form.
How will I work out if I can afford to own a home?
To calculate what it will cost you to own a home of your own, click here. Before deciding to buy a property, you should take independent financial advice to get a clear idea of the costs and obligations of home ownership. Click here to get a list of advisors who you can contact.
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New Build Homebuy (formerly Shared Ownership):
What is New Build Homebuy (formerly Shared Ownership)?
New Build Homebuy (formerly Shared Ownership) helps people buy property they cannot afford on the open market. You buy a share of the property (25%-75%) by way of mortgage or savings. You then pay a mortgage on the part you own, and you pay us a subsidised rent on the share we own.
Who arranges the mortgage?
You will need to arrange your mortgage yourself. To discuss the options available to you, you should contact an independent financial adviser. Click here to get a list of advisors who specialise in advice on buying a New Build Homebuy (formerly Shared Ownership) home.
Where are SHHO New Build Homebuy (formerly Shared Ownership) properties available?
Our New Build Homebuy (formerly Shared Ownership) properties are available all over London and the South East. Click here to see where our currently available properties are located.
Am I eligible for New Build Homebuy (formerly Shared Ownership)?
People who do not currently own a property may be eligible to apply for New Build Homebuy (formerly Shared Ownership) with us. Also, people who are current shared owners may be eligible. Other homeowners are not eligible. Generally when selling a property, we give priority to public sector tenants, key workers, local people who live or work in the area, or to those nominated by the Local Authority. Completing our short basic eligibility form is the first stage of the process - click here to get it.
How will I work out if I can afford to own a home?
To calculate what it will cost you to own a home of your own, click here. Before deciding to buy a property, you should take independent financial advice to get a clear idea of the costs and obligations of home ownership. Click here to get a list of advisors who you can contact.
Will the rent I pay to SHHO go towards paying off my mortgage?
No. The rent you pay to SHHO is completely separate from your mortgage. The rent is subsidised to make it as affordable as possible (it is well below normal market rent).
Can I buy jointly with someone else?
Yes, provided that your joint income and savings do not enable you to buy a home outright, and provided at least one of you meets the New Build Homebuy (formerly Shared Ownership) eligibility requirements. Click here to get the basic eligibility form.
I currently own a property with my partner, but we're splitting up. Am I eligible?
If you satisfy all the other eligibility criteria, you may be eligible. Please contact us directly to discuss your case.
I'm not working. Can I apply?
You might be able to apply. To be considered for New Build Homebuy (formerly Shared Ownership) you must either be able to arrange a mortgage or have enough savings to buy your share outright. To apply for a mortgage you must either be in full time employment, or be self-employed with three years of accounts. If you are unemployed, but feel you have sufficient savings, please contact us.[[create email page on click, address tbc]]
I already own a home. Can I apply?
In certain circumstances you may be able to apply. For example, you may be a current shared owner who needs to move to a larger home, or you may be going through a separation from your partner. If you feel you have an exceptional case, please contact us.
I do not have EU nationality. Can I apply?
Only EU or UK nationals or foreign nationals with indefinite leave to remain can apply.
What happens when I want to move?
If you own the property outright, you can usually sell your home without restriction. Your lease will specify any restrictions.
If we still own a share, what happens depends on your lease. For example, the terms of your lease may include a period during which we have the right to market the property to others who qualify for New Build Homebuy (formerly Shared Ownership) or even reserving our right to buy back the property (at full market value). Your solicitor will be able to advise you on these clauses.
Whatever your lease agreement, if we still own a share, you need to let us know. We will then arrange for your property to be valued (you will need to pay the valuer's fee in advance)). You will also be required to pay all legal costs when you sell your share.
We provide a resale service which is extremely competitive and less than you would pay an estate agent.
When can I sell my New Build Homebuy (formerly Shared Ownership) property?
You may sell at any time, but you must inform us in writing that you want to move.
Your New Build Homebuy (formerly Shared Ownership) properties are not in areas where I want to live. What can I do?
We are constantly adding to our list of available properties in different areas. So you should complete our basic eligibility form (click here to get it) and if you are eligible for New Build Homebuy (formerly Shared Ownership) we will contact you when a suitable property becomes available.
You should also approach your local council who will be able to give you details of other properties that may be available.
Who is responsible for repairs?
Your lease is a "full repairing" lease, which means you are responsible for all repairs to your home no matter what share you own, In the case of a flat, we carry out repairs to the external parts and you pay for this within the service charge.
Who will be my neighbours?
Most of our schemes are built on mixed tenure estates where there will also be a mix of outright sale, intermediate and social renting. When you view a particular property, we will advise you of the mix.
Are fixtures and fittings included in the sale price?
This will depend on the property. In many properties, we provide carpets, a cooker, hob and a fridge-freezer as standard. You will need to buy your own furniture.
When I apply, how quickly will I be able to buy my home?
This depends on the availability of properties and how many people want to buy them. Once you are invited to view a home and we confirm your eligibility the process can be very quick.
Are New Build Homebuy (formerly Shared Ownership) properties new?
Occasionally we may carry out refurbishment of a property but we mainly sell newly built homes.
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Intermediate Rent:
What is Intermediate Rent?
Intermediate Rent is part of a government initiative to make housing affordable to people employed in essential public services. People who are eligible have their rent subsidised, and pay approximately 30% less than on the open market.
Am I eligible?
To be eligible, you must be a "keyworker". Keyworkers are public service employees. Different localities offer properties for intermediate rent to different keyworkers, so where you want to live makes a difference to your eligibility. The first stage of the process is to complete our basic eligibility form (click here to get it).
How long can I stay there?
We give tenants an Assured Shorthold tenancy of a property for either six months or a year. Provided you remain a key worker you can remain in the property for as long as you wish.
Can I buy my home?
No you are not able to buy your home, but we may be able to assist you with low cost home ownership, possibly in the same locality.
Who does the repairs?
We carry our all the repairs to the property.
What other costs do I pay as well as rent?
You will pay a service charge if you live in a block of flats. Also you will be liable for Council Tax, utility bills and contents insurance.
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