Intermediate tenure properties for home ownership
Cheshire East is committed to helping local people secure their own homes who might not otherwise be able to afford a property at the full market value.
The term 'intermediate tenure' describes a range of homes for sale below market levels and seek to make them more affordable. There are several types;
Properties are offered for sale to eligible purchasers at less than full market value. For example, a £100,000 house with a 30% discount would be offered to eligible applicants for £70,000. In this example the purchaser owns 70% of the property and the Council owns 30%. After 5 years the purchaser can buy the remaining 30% of the property and own it outright. When the purchaser wants to sell the property, they must do so on the same terms as long as the Council owns a share in the property. This means they must sell it with the same level of discount they received and to someone who meets the criteria for affordable housing. A legal charge is attached to the property to ensure this happens. If the owner buys the remaining share from the Council the legal charge is removed.
Discount for Sale
Properties are offered for sale to eligible purchasers at a discounted price of the full market value. For example, a £100,000 house with a 30% discount would be offered to eligible applicants for £70,000. This is not a shared ownership scheme and even though there is a discount on the sale price, the purchaser still owns 100% of the property. When you want to sell the property, you must do so on the same terms, which means you must sell it with the same level of discount you received and to someone who meets the criteria for affordable housing.
Shared Ownership is available to help people to gain home ownership even though they cannot afford to purchase a property outright. Applying for a Shared Ownership home is done through individual registered housing providers.
A developer will sell the affordable properties to a registered housing provider, who then sells a percentage (25% - 75%) of the property to you. As well as any mortgage you take out, you will also pay rent to the RP on the remaining percentage. In some cases, if a high percentage is bought at the initial stage, you may not have to pay rent. You would usually be able to buy further shares in the property from the registered housing provider – this is called “staircasing”.
In many cases it may be possible to staircase to 100% and own the property outright; however, on certain sites (especially in rural areas) staircasing may be restricted, for example to 80% ownership. This way, the registered housing provider retains ownership of a small percentage of the property, to ensure that the property continues to be available as affordable housing for the next buyer when you move on.
What properties are available
There are a variety of affordable homes currently available across Cheshire East, including new developments and discounted re-sales. For a list of intermediate tenure homes for sale visit Cheshire Homechoice 'Homes to Buy Page'.
Applying for affordable housing
- Shared Equity and Discount for Sale - apply online by visiting; Affordable Housing Application
- Shared Ownership new build properties and re-sales - contact Help to Buy North West for further information by visiting www.helptobuynw.org.uk or calling 0300 790 0570. Help to Buy North West is the agent appointed by the Government to provide access to Help to Buy and Shared Ownership products in the Cheshire East area.
For more information about Shared Equity and Discount for Sale contact contact our Low Cost home ownership Advisor;
or phone 01270 685647