Shared Ownership
Social Homebuy - England Only
This is a shared ownership scheme launched by the government in 2006, for existing Local Authority/Housing Association tenants in England. Where the Local Authority or Housing Association participates in the scheme, a discount will be applied to the purchase price of the borrower's initial share of the property. Future shares in the property will also receive a similar discount but this won't be available until April 2008.
Processing and Keying - These should be processed in line with existing Shared Ownership scheme procedures. However, in order to take account of the discount, the cases need to be keyed as both Shared Ownership and Right to Buy. See below for information on how to key this type of application:
Example - A 50% share of a £100,000 property is being purchased under the Social HomeBuy scheme. The discount on the purchase price of the initial share is £2,500.
How to key:
Scheme Screen
- Select both Shared Ownership and Right to Buy
Loan Screen
- Key in the purchase price e.g. £47,500 (50% of £100,000 less the £2,500 Social HomeBuy discount)
- Key in the market value e.g. £50,000 (the purchase price without the discount)
- Key Source of Deposit as HomeBuy
Shared Ownership screen
- Record the applicant's shared ownership share e.g. 50%
- Record the Company Name and amount of monthly rent if known
Note - you should refer any further advance applications to your local processing centre quoting the 'exclusion code' and we will be able to process the application on your behalf.
Wherever possible a personal stake is preferred but loans can be considered up to 100% of the discounted purchase price, providing it does not exceed Halifax lending limits based on valuation.
For further information on processing Social HomeBuy applications or any other Shared Ownership schemes please contact your local processing centre.
