Homeownership Westminster

Frequently Asked Questions

What is Homeownership Westminster?

It is a new free service set up by the Council to help first time buyers who live or work in Westminster to find their way around the different type of assistance schemes for buying a home.

The service will:

help people to work out which type of scheme they could afford to become a home owner;
register people to receive updates about property developments and opportunities to purchase or rent in or around Westminster.

What type of schemes does Homeownership Westminster cover?

Shared Ownership:
Part buy part rent schemes (a person can start off buying as little as 25% of the value of the home)

Discounted Rent to Buy schemes
Renting a property at less than private market rents (but more than a council or housing association rent) with the option to buy a share in the property value at the end of the tenancy.

Shared equity loans
These loans help people buy a share of a property for sale on the open market (between 40% - 70% of the sale price) with a government backed loan covering the remainder.

Are low cost homeownership schemes only available to key workers and council and Housing Association tenants?

No. The government changed the eligibility for HomeBuy schemes in May 2008 so that they are available all first time buyers with a household income of up to £60,000 gross.

Some schemes, however, are still only available to key workers or social housing tenants because of the way they are funded.

Can people make an appointment to speak to a Homeownership Westminster Customer Services Officer?

Yes. Homeownership Westminster has a mobile office available in central London locations.

Telephone 0845 437 9701 to make an appointment to speak to a customer services officer at one of the mobile office locations.

What is Shared Ownership?

Shared Ownership is where you purchase a share of a property (the minimum purchase share is 25%) by raising a mortgage for the share price. Rent is paid on the remainder of the purchase price.

These schemes are operated by Housing Associations which usually offer newly built properties in developments. Re-sales of shared ownership properties also become available if the owner wishes to sell their share to a new purchaser.

Further shares can be purchased as and when the purchaser is able to afford it. This is known as stair-casing and can usually be done to a maximum share of 75%.

If you are a Housing Association tenant, you may be able to purchase a share in the home you currently rent. This type of shared ownership scheme is called Social HomeBuy.

What is a shared equity loan purchase?

Under Shared Equity schemes, a first time buyer can buy part of a property at open market value by raising a mortgage. The remaining part of the property is funded by a government backed equity loan.

The property purchased must be available on the open market ie a freehold or leasehold property. The purchaser can not use the equity loan to buy a share in a Shared Ownership property offered by a Housing Association or a council owned home.

If the purchaser chooses to sell the property, the government is entitled to receive their share of the value of the property at the time of sale. (i.e. if the property is worth more than it was at the time of the original purchase, then the split in the increased value (equity) is based on the owner’s purchase share and the government’s equity loan share.

There are three types of shared equity loan products available for first time buyers:

MyChoiceHomeBuy – purchasers can obtain up to 50% equity loan on the purchase price of their chosen property.
OwnHome – purchasers can obtain up to 40% equity loan on the purchase price of their chosen property.
HomeBuy Direct – purchasers can obtain up to 30% on the purchase price of their property. This scheme is different from MyChoiceHomeBuy and OwnHome in that the properties purchased must be from a government designated HomeBuy Direct private development new build scheme.

How much money am I eligible for under a Shared Equity Loan?

We can advise you on how much you are likely to be eligible for once we know the details of your income, expenditure, debts and savings.

Once you submit your application for a Shared Equity Loan, you will undergo a detailed financial assessment with the HomeBuy provider covering your area.

You will then be notified by the HomeBuy provider of the amount you would be eligible to receive as an equity loan amount. It is important that you wait until you have permission from the HomeBuy provider before you start looking for a property.

Can I buy with someone else?

Yes, with Shared Ownership and Shared Equity Loan schemes you can purchase with someone else, provided that they are also a first time buyer and that your joint household income does not exceed £60,000 gross.

What is a HomeBuy provider?

HomeBuy providers are Housing Associations appointed by the government to provide a one stop shop service for HomeBuy products – like shared equity loans and new build HomeBuy Shared Ownership.

The HomeBuy provider for North and East London is Metropolitan Home Ownership. The provider will put applicants for schemes through rigorous eligibility and affordability checks to ensure that they could not afford to buy a suitable home without assistance.

The service provided by the regional HomeBuy agents is also known as Housing Options. The regional Housing Options manages Key Worker Living Schemes for sale or rent.

What is the difference between Homeownership Westminster and the HomeBuy provider for regional Housing Options?

Homeownership Westminster is responsible for prioritising council nominated applicants who apply for Shared Ownership or discounted rent to buy properties funded by the council.

Homeownership Westminster does not manage applicants for Key Worker Living Schemes – however a key worker who either lives or works in Westminster could apply to Homeownership Westminster for other schemes open to all Westminster Council nominated applicants.

How many forms do I need to fill out?

You only need to fill out one registration form. If you meet our eligibility criteria, we will use the information you provide to assess the type of schemes you can apply for.

You may need to fill out additional application forms depending on the scheme you buy your property through.

If you tell us on your registration form that you are interested in buying a property outside of Westminster, we will forward your details to the regional Housing Options service so that you are also added to their regional register.

What type of properties can I buy?

The type of property you can buy depends on the scheme you apply for.

Shared Ownership properties and discounted rent to buy properties tend to be flats in new build development blocks. They are mostly one or two bedroom flats, although occasionally three bedroom flats are available.

With a Shared Equity loan from MyChoiceHomeBuy and OwnHome you can purchase any property that is for sale on the open market provided that:

it is a freehold or leasehold property (with at least 80 years left on the lease)
it is not offered for discount sale by a local council,Housing Association or under New Build HomeBuy or other Shared Ownership conditions
It is not deemed in poor condition (this is where the mortgage lender holds back funds from the mortgage because of works needed to the home).

With a Shared Equity loan from HomeBuy Direct you must purchase a property in a HomeBuy Direct development. These are usually new build flats.

Can I buy the property that I currently rent or a property owned by a family member with a shared equity loan?

Yes, if you are a private tenant or are living with friends/ family.
The value of the property must be approved by a qualified surveyor from the Royal Institute of Chartered Surveyors (RICS).

No, if you are a council or Housing Association tenant.
You can however buy the property through other schemes such as Right to Buy (for council tenants) and Right to Acquire (for Housing Association tenants).

Housing Association tenants can also buy a share in their home and pay rent on the remainder of the share. This is called Social HomeBuy.