Hanley Economic sees self-build advances rise by over a third in 18 months.
Lending Criteria – Shared Ownership
- Minimum Share: 25%
- Maximum Property Share on Initial Purchase: 75%
The provider must be a registered Housing Association or a registered provider appearing on the following list: Registered Providers
- Shared Ownership lending is restricted to England and Wales
- The lease must be a Model Lease Agreement
- A Memorandum of Sale, which states the share being purchased, ground rent, the rent payable and the services charges is required with the supporting documents.
- Shared ownership rent, services charges and ground rent must be disclosed on the mortgage application form and will be treated as a commitment for the purposes of affordability.
- The lease must allow borrowers to staircase up to 100% ownership and is subject to:
- Approval from the provider (Housing Association)
- A minimum 10% tranche to be purchased
- A solicitor must be used
- A new valuation will be obtained
The following schemes are deemed unacceptable:-
- Older persons shared ownership
- Designated protected/rural areas
- Home ownership for people with long term disability (HOLD)