Homebuy Essex

Getting started with homebuy schemes in Essex

If you are interested in finding out about the various homebuy schemes available in Essex, Share to buy ltd may be able to help. At sharetobuy.com you can search for shared ownership properties in Essex available under the 'part buy part rent' scheme. If you are unable to find any shared equity properties where you want to live, please bear in mind that we are a brand new website and are looking to add properties all the time, and you can register for updates confirming when we do have properties available in Essex under one of the homebuy schemes.

Looking for shared ownership properties in Essex?

We have shared ownership houses and flats for sale on a part-buy part-rent basis in Essex on our affordable homes property website.

PS: don't worry if you cannot find any, you will be able to register for updates when shared ownership properties become available.

Homebuy options in Essex

'Homebuy' is the term used by the Government to describe its various different shared ownership and affordable housing schemes. The main homebuy schemes are as follows, (with further details below):

• Newbuild Homebuy: traditionally called shared ownership, new build homebuy is essentially part buy / part rent on new build homes.
• FirstBuy (previously Homebuy Direct): a shared equity scheme where both builders and the Government join forces to provide Equity Loan funding for a potentially sizable deposit on a new home
• Rent to homebuy: enabling potential homebuyers to rent at a discounted rate before they purchase
• Social homebuy: enables social tenants to buy a share in their existing home on a shared ownership basis, and with the benefit of a discount

New build homebuy

New Build HomeBuy is the Government's favoured term for traditional 'part buy / part rent' shared ownership. It's known as shared ownership because you share your ownership with a housing association – you pay rent on their share and take out a mortgage with deposit on your share. It's called 'New Build' HomeBuy because the properties are usually new build flats or houses. However, it is possible to purchase a second hand shared ownership property where an existing shared ownership tenant wishes to sell their share. This is known as a 'resale'.

You can typically purchase between 25 and 75 per cent of your home at the outset and when you can afford it, you are able to buy additional shares until you own 100 per cent of your shared ownership home - this process is known as 'staircasing'. In terms of eligibility, new Build HomeBuy is usually available to first time buyers with a maximum income defined by the scheme provider, but is also targeted at 'priority groups' such as existing social housing tenants, people on local authority waiting lists and key workers.

FirstBuy (previously Homebuy direct)

FirstBuy, previously HomeBuy Direct, is a shared equity rather than shared ownership scheme – that is, instead of buying a share in a property (shared ownership), you buy the whole home but with a deposit provided in the form an equity loan. Like New Build homebuy, the First Buy scheme and Home Buy Direct scheme are both for new build properties. In this case, FirstBuy and HomeBuy Direct participants are given help to purchase a new build home from certain recognised builders. With FirstBuy, you generally purchase 75% of the home with a mortgageg put down a 5% deposit and then receive a 20% equity loan from the Government and developer.p>

Rent-to-homebuy

Rent to HomeBuy enables potential shared ownership home buyers to pay reduced rent on a new-build home. The idea is that these tenants can then save their discount towards a deposit for a shared ownership property purchase. The main point to bear in mind is that, since the credit crunch, minimum deposits have gone up across the board but particularly for mortgages on new build properties, and therefore this scheme enables people who might otherwise have trouble saving a deposit for an affordable mortgage to take part in Rent to HomeBuy as a scheme that will eventually lead to full participation in shared ownership of a home. In the scheme, the tenant pays a rent set at no more than 80% of the current market rent on a home for up to five years. Again, it is a new build property and the eventual purchase would take place under the new build homebuy scheme, i.e. part buy / part rent shared ownership.

Social homebuy

Social HomeBuy allows existing secure or assured tenants of participating housing associations and councils housing to buy their home on a shared ownership basis or outright, with the benefit of a discount. Tenants usually buy their home on a shared ownership basis with a minimum share of 25%, but outright purchase is also allowed. The maximum discount available through Social HomeBuy varies from £9,000 to £16,000, depending on the location of the property. Discounts are also available on any subsequent shares purchased. If the property is sold within five years, the discount is repayable.

Shared ownership mortgages

If you have already found a shared ownership property in Essex and are now looking for a mortgage, we would be delighted to assist. We are a specialist mortgage brokerage who will search the market to find you competitive shared ownership mortgage deals. Read about our shared ownership mortgage services; research what you might be able to borrow and the potential cost with our shared ownership mortgage calculator, or if you have found a shared ownership property, submit a non-binding agreement in principle application.