Social HomebuyAn opportunity to own your home - on shared ownership terms
Southwark Council introduced its shared ownership scheme - Social Homebuy in late 2006, as part of an umbrella of modernised shared ownership initiatives launched by the government, branded 'Homebuy'.
As a more affordable alternative to the Right to Buy, the Social Homebuy scheme offers Southwark Council's qualifying tenants the opportunity to buy a share in their home at a discounted price. As with most shared ownership schemes a rental amount is paid on the remaining share.
Affordable
There are a number of benefits for tenants purchasing on shared ownership terms under Social Homebuy rather than buying outright. Most importantly it is not as financially demanding
- Your combined monthly rent and mortgage repayments are likely to be less than if you had bought the property outright.
- Stamp Duty Land Tax regulations have recently been amended. Now no Stamp Duty will be payable if the initial share purchased under Social Homebuy is below 80 per cent and the purchase price does not exceed the relevant Stamp Duty thresholds. No Stamp Duty will be payable on additional shares purchased unless these take the purchaser above an 80 per cent share of the property. Further changes, effective from September 2008 until September 2009 provide that for certain purchases under £175,000 no stamp duty is payable at all.
- Most of your annual service charges (for caretaking, grounds maintenance and other communal services) are apportioned to the share you purchase.
- You only pay a contribution for major works to your block in proportion to the share you own.
- As your financial circumstances change, you can apply to buy a larger share – both making an investment in your home and reducing the rent you have to pay.
- We will determine your level of affordability by carrying out a detailed means test. We will not allow you to buy a larger share than we believe you can afford. This will assist you in making an informed decision on what share you should buy.
- It is also an excellent way of entering into home ownership and getting a foot on the property ladder without you having to move away from the area you currently live and perhaps work in.
Social Homebuy affordability calculator
A way of considering the potential costs before applying
The affordability calculator (Excel 46 kb) uses a Microsoft Excel spreadsheet. If you are unfamiliar with this type of computer programme or have any difficulty in completing the relevant information, please do not hesitate to contact Mark Maginn Social homebuy officer on 020 7525 7431 who will be more than happy to assist you.
Guidance notes (Word 51kb) have been produced to assist you with completing the attached affordability calculator.
Did you also know?
- Southwark Council was the first local authority in the country to have its' Social Homebuy Scheme approved by the Government and the first local authority in the country to have completed sales under the scheme.
- Local Authorities that operate Social Homebuy schemes are permitted to keep 100 per cent of the sale proceeds for re-investment in social and affordable housing. We are currently only allowed to retain a significantly reduced percentage of Right to Buy sale proceeds.
- Although Social Homebuy is a shared ownership scheme, you can now buy outright (a 100 per cent initial share) if your financial assessment shows it is affordable.
- Right to Buy applicants can apply to convert their application to Social Homebuy as long as they do so within 12 weeks of receiving their Right to Buy offer.
- Southwark Council's Social Homebuy scheme is administered by the councils' Home Ownership Unit, who have devised an affordability calculator to assist you with your decision to apply for the scheme.
Download our booklet Social Homebuy – a guide for secure tenants buying their home on shared ownership terms (pdf 482kb) and the associated addendum (Word 31.5kb).
To view the PDF document on above, you will need Adobe Acrobat on your PC.
You can also download a Social Homebuy Application Form (Word 226kb). Please print the application form, as it cannot be completed on-line.
Contact us
Home ownership unit
Tel: 020 7525 1400
Fax: 020 7525 1445
hsg.homeownership@southwark.gov.uk
113 Lorrimore Road
Walworth
London
SE17 3NA
Opening Hours: 9am to 5pm, Monday to Friday
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