An introduction to Discount Full Ownership
What is the Discount Full Ownership scheme?
Discount Full Ownership: Overview
Discount Full Ownership is currently provided by Pocket Living. Pocket Living is an innovative housing developer, supported by the Mayor of London and Homes England, delivering affordable homes for first time buyers. Pocket homes sell for at least 20% below local market prices, with the buyer purchasing 100% of the home.
This product is different from Shared Ownership where you part-buy part-rent a home. Instead there is no equity retained by the developer or local authority, no rent to pay and no staircasing.
You will need to arrange a mortgage, which will typically require a deposit of 15% of the sale price. The amount of deposit required will depend on the mortgage provider you choose, the terms of the mortgage, your income and your credit rating. You will also need to cover the cost of the mortgage valuation or survey, legal fees, and any Stamp Duty (if applicable), which typically comes to approximately £4,000.
Finally, in addition to your mortgage repayments, when you move in you will also need to pay a reasonable service charge for maintenance and upkeep of communal areas and the grounds of your building – this varies from building to building.
Discount Full Ownership: Eligibility
To be eligible for Discount Full Ownership, you must meet certain criteria:
- You need to live or work in the borough of the development, although this may extend to all London boroughs after a set period of time.
- Your household income must not exceed £90,000. However, please be aware that particular local authorities sometimes set a lower income cap for a set period of time.
- You must not already own another home.
“When I found out about Pocket last year, I had to double check everything as I couldn’t believe there was a home that I could afford to buy that could actually be mine and I could stay in a place I’ve come to call my home.”
– Anne, Discount Full Ownership purchaser at Pocket Living’s Varcoe Road, Southwark
To find out more about other home-buying and rental options, visit our article index, or check out our helpful FAQs and guides. Alternatively, you can start your search for a new home on Share to Buy’s property portal today!