Social Housing

Social Housing Schemes

At Lawcomm Solicitors we deal with the four main schemes – ‘My Choice Homebuy’, ‘Open Market Homebuy’, ‘New Build Homebuy’ and ‘Social Homebuy’

Mychoice Homebuy

My Choice Home Buy is a shared equity scheme that helps people who cannot afford to buy a home of their own. The choice is with the purchaser to buy any property on the open market.

You apply for a mortgage on a percentage share of the property, typically between 15 to 50%. The remaining share is held by the local Homebuy Agent who will receive a monthly fee.

Open Market Homebuy

The open market homebuy scheme is available to Housing Association or Local Authority tenants. The purchaser will acquire a share of the property outright with the assistance of a specialist mortgage lender and the remaining balance of the purchase price is provided by way of an equitable loan from a Housing Association or Local Authority. The loan will be registered on the title deeds as a second charge and the purchaser will not be required to make any monthly repayments. The loan will be repayable as a percentage of the market value of the property when it is sold.

For Key Workers

Key Workers are eligible NHS staff, Police, Teachers, Fire and Rescue service and eligible Local Authority employees. The Key Worker must be employed in a qualifying key worker profession and have at least 5 years to serve prior to retirement. The Key Worker scheme is aimed at allowing key workers to purchase a property on the open market using an equitable loan from a Housing Association or Local Authority. The purchaser will obtain a mortgage on the remaining percentage of the purchase price and the loan must be repaid when the purchaser ceases to be a key worker and/or moves out of the qualifying area.

Social Homebuy

Social Homebuy is not an approved scheme and therefore is only available to a very few Local Authorities and Housing Associations. This scheme allows existing housing tenants to buy their current council or housing association properties on a ‘part rent, part buy’ basis with the assistance of a discount on the purchase price. Although any discount will be repayable if the property is sold within 5 years of completion.

New Build Homebuy

This is the ‘part rent, part buy’ scheme for those who cannot afford to purchase a home outright. Purchasers will acquire a percentage of a New Build Homebuy.

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