New shared ownership model
The government launched a new model for Shared Ownership in 2021, and the new lease obligations are only for those delivered under the Affordable Homes Programme 2021-2026.
Whilst providers continue to deliver homes, there will be a transition period in which both models will be available for some time. Therefore the model you purchase under will be subject to the development and property you choose to purchase.
Please refer to your Sales Consultant to confirm which model you are purchasing under.
The information below is only for those that purchase a home built through the New Model for Shared Ownership or for those who are Right to Shared Ownership (RTSO) tenants converting to Shared Ownership.
How does new model for Shared Ownership work?
- You can buy between 10%-75% of a new build Shared Ownership home.
- All new leases on new build Shared Ownership homes will have a minimum lease length term of 990 years.
- Staircasing tranches reduced from 10% to 5%.
- The resale nominations period has been reduced from 8 weeks to 4 weeks.
- You will have the option to buy 1% each year for 15 years with heavily reduced fees.
- There will be a 10 year repair period.
What is the 10 year repair period, and how does it work?
During the first 10 years of your lease, you may apply to Rooftop Housing Group for a contribution towards qualifying and essential non-structural repair costs, provided it is not covered by the build warranty or any other warranty or insurance. The maximum claim for qualifying repairs to your home each year is £500, with any remaining balance being transferred to the next year only. You are still responsible for getting these repairs done to your home, but you may be able to make a claim towards the cost if you provide an invoice from a Trustmark approved trader as proof of payment.
The repair allowance is not intended to cover all costs that you will face as a homeowner. However, it is limited to the costs of keeping in repair and proper working order, the fixtures, and fittings that:
- Supply water, gas or electricity – for example sinks, baths or pipes.
- Heat your home, for example a boiler or radiator.
- Support the structure of the building e.g., windows, doors or walls.
It does not include:
- Installing other fixtures (such as kitchen cabinets) and fittings.
- Installing appliances that use your gas, electricity or water supplies, such as ovens or washing machines.
- Works cannot be claimed in respect of any work that is covered under a warranty, insurance policy or guarantee.
- General maintenance or redecorating
- Repairs or replacements carried out to an improved specification will not be eligible
unless avoidable - Accidental damage
- Deliberate or avoidable damage (this includes where a homeowner has failed to
ensure appropriate routine servicing and maintenance) - Damage caused by improvements.
- DIY repairs, or repairs done by non-professionals.
Details on how to apply will be provided by your Sales Consultant.
Initial purchase
The share you purchase is determined by an affordability assessment, taking into consideration the property price, your income and any monthly outgoings.
Generally, our new developments are advertised from 50%, however under the New Model for Shared Ownership, shared ownership properties can be purchased from as little as 10% but this can vary by development.
Please ask your Sales Consultant for further details.
Key information documents
Rooftop Housing Group will produce easy to read, key information documents prior to a sale that will highlight key responsibilities, processes and costs:
- Key information about the home
- Summary of costs
- Key information about shared ownership
These will be issued to you at an early stage during the sale process to allow you to make an informed decision.
It is important that you are aware of the responsibilities associated with becoming a shared owner and have a good understanding of both the initial and ongoing costs of managing a Shared Ownership home.
What Rooftop means to me
Anonymous
Retirement Living - Seward Close
