Opening Doors to Affordable Homes
The Trust will offer a range of financial solutions to satisfy the demand for affordable housing and to respond to individual preferences. The products incorporate all the necessary safeguards to meet the requirements of Local Authorities and mortgage lenders in an easy to understand way and with minimal bureaucracy.
Sharebuy
This is a part buy, part rent scheme based on the conventional shared ownership model operated by Housing Associations and incorporating recent guidance of the Housing Corporation, Council of Mortgage Lenders and National Housing Federation.
Successful applicants will normally buy between 50% and 75% of the value of their new home. They pay a subsidised rent on the remainder. The purchaser can choose to increase their share of ownership as time goes by, eventually achieving full ownership. The Trust may exercise a right of first refusal to repurchase the property at the current market value. This will allow the provision of further affordable housing via The Trust.
Homebuy
This product is modelled on the Government’s Homebuy Scheme offered through the Housing Corporation.
The purchaser pays for as much of the property as they can afford through savings and mortgage with the minimum amount normally being 50% of the Open Market Value and Bellway Housing Trust provides an equity loan to cover the remainder of the purchase price. A subsidised rent payment for the equity loan will be required and buyers will have the opportunity to reduce this loan through staircasing provisions. The equity loan is repaid at current market values on a subsequent sale of the property.
Affordability
The Trust sells at a percentage of current Open Market Value. Rental payments and equity loan charges are based on an annual payment of normally 2.5% of the unsold equity. Annual increases will normally be no more than RPI plus 0.5%.
Trust purchasers will pay the same service charge as other purchasers on the site and they will have exactly the same rights and obligations as open market purchasers.
Trust purchasers will not be required to pay any ground rent until, and if, they staircase to 100% ownership.