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Who pays for extras in a new build property?
The Co-Ownership purchaser does. We agree to pay for the basic property, including any PC sums.
What sources of income can you consider for Co-Ownership?
· Income from permanent employment, full-time or part-time · Overtime/bonuses/commission/shift allowance, if they are regular and your employer guarantees them · Income from some contract employment, depending on individual circumstances · Some state benefits (disability living allowance if awarded for life, working tax credit, child tax credit and disabled families tax credit) · Private pensions . Maintenance, with evidence of a court order or confirmation from your solicitor · Income if you are self-employed, based on your last 3 sets of accounts and one year projections. Contact us on our freephone enquiry line for a personal assessment.
With Co-Ownership there are 2 payments every month - mortgage and rent.
How can this be cheaper than making a single monthly mortgage payment?
Because with Co-Ownership the mortgage payment is much less, and the rent is an affordable one. So when the 2 amounts are combined, the total is less than a single large mortgage payment. Our home buyer's calculator compares the cost of buying a property without Co-Ownership and buying with Co-Ownership.
The valuation report on my property has raised some queries or recommended further investigations.
What should I do?
The valuer's role is to comment on the condition of the property generally and to value it for mortgage purposes. As part of those comments there may be queries about specific aspects of the property or recommendations for further investigation by a specialist. Where this happens we recommend that you get each queried item checked out to your satisfaction by an appropriate professional before you go any further. For instance, if the report recommends a specialist report on the central heating boiler, then get the boiler inspected by a qualified heating engineer.
What are the fees that accompany the application form?
There are 2 parts to the fees sent in with your application. There is a legal package fee of £210 and a valuation fee of £40. This makes a total payable of £250. For more information on fees, please check out our Key to Affording a Home leaflet in the Publications area.
How soon after I apply to purchase a property will I hear from Co-Ownership?
You will hear from us several times. The most important thing if you want a quick decision is to make sure that your application form is fully completed and that you send in all the back-up information needed (eg, payslips, landlord and employer's forms). We will acknowledge your application and make arrangements to have the property valued immediately on receipt. At the same time, we will offer you an interview appointment to take place inside 10 days. The valuer will visit the property within 5 days and prepare a report. If there are no queries to sort out about the property or the details of your application, we hope to write to confirm our decision after your interview.
Do all estate agents deal with Co-Ownership purchasers?
The choice is theirs and most do. We keep in regular contact with estate agents and financial advisers generally to ensure that they have up to date information about Co-Ownership.
Do all lenders offer mortgages to Co-Ownership purchasers?
The choice is theirs (not all lenders specialise in small or first time buyer mortgages). Many do, and some offer special package deals from time to time. When you are ready to apply, you may wish to check out the current mortgage packages directly with several lenders to find one that suits you. You can get free, no obligation quotations from lenders on request.
My parents would like to be guarantors and help me to pay for the property - can they do this?
You will be purchasing the property in your own name and signing legal documents in the same way. Unfortunately, we cannot accept a guarantor in this situation. However, if your parents can make you a cash gift you could then use the money as a deposit on the property.
I was a home owner, but I sold my property and now I’m renting.
Can I purchase through Co-Ownership?
You may be able to purchase a property through Co-Ownership, depending on why your previous home was sold and what your financial situation is now. Contact us on our freephone enquiry line for a personal assessment.
I applied with a partner to purchase through Co-Ownership, now we are splitting up.
Can I buy the house myself?
Hopefully we can still help. It depends on whether we feel you can still afford it. If not, you may have the option of finding a less expensive property instead.
I have found a property, but the asking price is above the Co-Ownership value limit.
Can you consider it anyway?
We can only purchase property where the price agreed is inside our value limit for the relevant council area.
Sometimes people ask if they can send in an application, giving property details inside the value limit and then pay a 'top up' amount direct to the seller. We recommend that you don't try to do this because it works against you later when you come to buy a bigger share or sell your property.
What is the Co-Ownership legal package?
To deal with the legal matters involved in purchasing a property through Co-Ownership, we offer an optional legal package. With the legal package, the applicant uses the same solicitor that we do. There is a specially negotiated scale of fees. We pay the larger share direct to the solicitor. The legal package fee you send in with your application form covers the time taken by the solicitor when working on your behalf. This is one part of your legal costs involved. The other part of your legal costs relates to the expenses or 'outlays'. Your portion of these legal expenses involved in buying the property is not included in the legal package fee. You will be asked to pay these expenses directly to the solicitor. The amount varies depending on the individual property. This is why you pay it separately. Your solicitor will be able to assess it for you and give you a written statement of the expenses.
Is there any further advice you can give me?
We do not give financial, taxation or legal advice. If you need advice, you must consult your own professional adviser.
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