About Shared Ownership 1

About

Shared Ownership

2 Severn Homes

About ShAred ownerShip

the proceSS

how Much Should i expect to pAy?

once you’ve Moved in

1 What is Shared Ownership?1 Why buy through Shared Ownership?2 Who are Severn Homes?2 Why buy through Severn Homes?2 What am I buying?

3 The Steps of Shared Ownership4 Step 1 — What’s available and registering your interest? 4 Step 2 — Am I eligible? 5 Step3—CanIaffordit?6 Step4—Confirmationofofferandappointingasolicitor7 Step 5 — Arranging a mortgage7 Step 6 — Completion

9 Startingoutcosts10 Monthlycosts11 Othercosts

12 Repairsandmaintenance12 Repairsandmaintenancefornewhomes.12 Alterations and improvements13 Changing your lease13 Increasingyourshare13 Selling your home

About Shared Ownership 1

What is Shared Ownership?Sharedownershipenablesthepurchaseofaproperty that otherwise would not have been affordable.Itis,

Ì aschemeforpeoplewhoareunabletoaffordtobuyahomeatfullmarketvalue(limitsonincomeapply),

Ì alsoknownas‘part-buy,part-rent’,isaimedatfirsttimebuyers.

Shared ownership is available on a number of differentpropertiesincludingnewbuildandpre-ownedproperties(resales).Pre-ownedpropertiesincludethoseeitherthecurrentsharedowneror Severn Homes wishes to sell on a shared ownershipbasis.

Why buy Shared Ownership?Sharedownershiphelpsmanyfirsttimebuyersgetafootonthepropertyladder.Buyingahomeinthecurrentmarketcanbeverychallenging.

Bypurchasinganinitialshareof25%to75%ofthevalueofaproperty,Sharedownershipopensthe door to home ownership when it would otherwisenothavebeenaffordable.

A mortgage is required for the share that is purchasedandrentispaidontheremainingshare.Thereisalsoamonthlyservicechargepayable(seepage11).

Thebenefitsofsharedownershipinclude:

Ì Owningpartofyourhome,ratherthanpayingallrentwithnoreturn.

Ì Yourmonthlyrentandmortgagecanworkoutcheaperthanbuyingoutrightandsometimescheaperthanrenting.

Ì Youcanbuymoreshares(limitsmayapply)orsellyourshareifyouwant,whenyouwant.

Ì Youonlybuywhatyoucanaffordsoyoudon’toverstretchyourselffinancially.

About ShAred ownerShip

2 Severn Homes

Who are Severn Homes?Severn Homes is a division of Severnside Housing that specialisesinprivatesectorhousingforrent,saleandsharedownership.

BasedinShrewsbury,wehaveagrowingportfolioofhighqualityhomesthroughoutShropshire.UsingourlinkswithSevernsideHousing,weofferawealthofknowledgeandexperienceindeveloping,managingandmaintainingoutstandingproperties.

About Severnside HousingSevernside Housing is one of Shropshire’s largest sociallandlordsowningmorethan5,400propertiesin Shrewsbury and the surroundingareas,includingmorethan1300supported housing properties or homes suitable forolderpeople.

SevernsideHousingisaregisteredcharitythatinvestsinitsneighbourhoodsandworkscloselywithresidents,partnersandthewider-communitytodeliveritsvisionof‘ExcellentHomesinthrivingcommunities’.

Why buy through Severn Homes?

Ì Weareareputablecompanywhocareaboutourhomesandourcustomers.

Ì WehaveaccesstothewealthofexpertknowledgeintheSevernside’sdevelopmentteamwhodesignstateoftheartaffordablehousingandolderpropertyrenovations.

Ì Weofferaffordablerentontheshareofthepropertyyoudon’town(amonthlyservicechargeisalsoapplicable,seepage11).

Ì AllofournewhomescomewithNHBCwarrantyorequivalent.

Ì Weworkwithmanynationalhousebuildersandlocalcontractors,buildingand

purchasinghighqualityhomesinpopularareas.

Ì Weaimtoselltofirsttimebuyerswhoareabletoaffordthecostofsharedownershipbut unable to buy a suitable home by any othermeans.Eligibilityrequirementsdifferfromschemetoscheme.

What am I buying?BuyingapropertythroughSevernHomesasasharedownermakesyouanowneroccupier,notaparttenant.

Initially,youpurchaseashareofyourhome,rangingfrom25%,ona99yearlease.Yourleaseisalegaldocumentthatsetsouttermsandconditionssuchas,

Ì yourrightsandresponsibilitiesasanowner-occupier,

Ì whattoexpectfromSevernHomes,

Ì howoftenyourrentandservicechargewillbereviewed,

Ì howtopurchaseadditionalsharesinyourhome,and

Ì theprocedurewhensellingyourhome.

Thispropertymustbeyourmainandprincipleresidential home and you must not own another propertyinthiscountryorabroad.Youmustliveintheproperty.Theleasehasasub-lettingclausewhichpreventsyoufromsub-letting.

Asyouownaleaseyouwillbeknownasa‘leaseholder’andwewillbeknownasthe‘Landlord’.Asaleaseholderyouwillhavetherightsandresponsibilitiesofafullowner-occupier.

Youcanchoosetobuyadditionalsharesinyourproperty,thisiscalledstaircasing.Themoreshares you own in the property the less rent you needtopay.

Atthistime,ShropshireCouncil’spolicyhasstaircasinglimitedtoamaximumof80%share,howeverthisisunderreview.

The Process 3

1

4

2

5

3

6

What’s available and registering your interest

Are youeligible?

Can Iafford it?

Confirmation of offer andappointinga solicitor

Arranging a mortgage

Completion

the proceSS

The Steps to Shared Ownership

4 Severn Homes

Step 1 — What’s available and registering your interestHomes available for shared ownership are usually advertised on the Severn Homes website andwithnominatedlocalestateagents,whothen promote through newspapers and various propertyportals,suchasRightmove,ZooplaandOntheMarket.Eachpropertyadvertwillcontaininformationaboutsharesavailabletopurchase,rentlevels,propertyspecificationsandcontactdetailstoarrangeaviewing.

If you are interested in shared ownership you will need to register with Severn Homes in order toproceed.Thisinvolvescompletingafullapplicationformsowecanassessyoureligibilityforsharedownership,ensuringthatwemeetthe audit requirements for the shared ownership schemeandthatyouendupwiththepropertythat’srightforyou.

Step 2 — Am I eligible?Eligibilitymayvarydependingonthedevelopmentyouareinterestedin,thepropertysizeandanyadditionalcriteriaimposedbythelocalauthority.

Foreveryschemethereareanumberofcriteriathatmustbefirstmet.

Ì Totalhouseholdincomemustbelessthan£80,000perannum.

Ì Beafirsttimebuyer,oranewhousehold,forexample,startingagainafterarelationshipbreak-up.

Ì Berelocatingforworkpurposesintoanareawherehousepricesaretoohighforyoutobuyahomesuitableforyourfamilysize.

Ì You may not own a home elsewhere in the world,unlessacourtorderforcesyoutoremainonpropertydeedswhereyourchildorchildrenreside.

Ì Thesharedownershiphomeyou’relookingto buy will be your only home and you may notsub-letalloranypartofit.

tipAre you registered

on the Electoral Roll?Having your correct and current details registered on the Electoral Roll helps mortgage lenders identify who you are and, therefore, process your mortgage application.

Talk to your local council to find out more information about the Electoral Roll.

Ì Youcannotaffordtobuyapropertysuitableforyourfamilysizeontheopenmarket.

Ì Youmustpassafinancialassessmentandsecureamortgageandbeabletoaffordtobuytheminimumshareavailable.

Ì YoushouldalsobeaBritishorEU/EEAcitizen,orhaveindefiniteleavetoremain.Customerswithoutindefiniteleavetoremain must be able to demonstrate that they are able to raise a mortgage with an acceptablelender.

Ì Youneedtobe18yearsoldorovertoapplyforamortgage,andhavesavingsforthelegalandfinancialarrangementsandthemortgagedeposit.

Ì Youmustmeetanylocalconnectioncriteriaattachedtothedevelopment(ifapplicable)andprovideevidenceofyourconnection.

Ì Homeowners,includingsharedowners,arenotexcludedfromapplyingbutaresubjecttoadditionalcriteria.TofindoutmorecontactSevernHomeson03003000059.

The Process 5

Step 3 — Can I afford it?Wewillaskyoutocompleteafinancialassessmentearlyintheprocess,beforeyouviewanyhomes,toensureyouqualifyforamortgageandarenotover-commitingyourself.

Forthis,werequestyoumeetwithaMortgageAdvisor,whowillcarryoutaprovisionalassessmentand,

Ì checktheinformationonyourapplicationformiscorrect,

Ì agreewithyou,basedonyourincome,savingsandoutstandingcreditcommitments,whatpurchasepercentageshareisaffordable,

Ì confirmyourabilitytoobtainamortgageandprovideevidenceforyoutosupplytous,

Ì provideinformationaboutchoosingasolicitorandtherightmortgageforyou.

Inadditiontotheabove,wewillcarryoutincomeandexpenditure,referencingandcreditchecks.Inordertocompletetheseyouwillneedtoprovideuswiththefollowing.

Ì Evidenceofyourincome.Thismaybeyour payslips from the last three months or,ifyouareselfemployed,yourauditedaccountsfromacertifiedorcharteredaccountantforatleastthelasttwoyears,oryourtaxassessmentsfromtheHMRCforatleastthelasttwoyears.

Ì Yourpassport.

Ì Bankstatementsforthelastthreemonths.

Ì Acopyofyourmarriagecertificate(ifapplicable).

Ì Details of any previous surnames or other names(ifapplicable).

Ì Evidenceofanybenefitsyoureceive,forexample,ChildBenefit.

Ì Evidenceofrentpaymenthistory(ifapplicable).

Ì Proofofresidencyforthealltheaddressesyouhavelivedatforthelastthreeyears.Thiscanbeutilitybills,bankstatementsorCouncilTaxdocumentation.

Ì Statementsoragreementsforanycreditcards,storecardsorpersonalloansthatyouareliablefor.

Ì Proofofsavings.

Ì A signed letter from a family member confirminganygifteddeposit.

Your mortgage advisor will also require the above documentation.

Ifyoudonotcompletetheassessmentyourapplicationforasharedownershippropertywillnotbeabletoproceed.

tipBe careful with

your credit rating

After you are offered a mortgage do not spend excessively or apply for loans as your application may be scored again before mortage funds are released.

Anything that might show up on your credit score runs the risk of your mortgage being withdrawn.

6 Severn Homes

Step 4 — Confirmation of offer and appointing a Solicitor Ifyouareeligibleforoneofourhomes,wewillcontactyoutomakeanofferofahome.Youwillneedtowritebacktous,withinaspecifiedtimeframe,toconfirmyouracceptance.Wewillalsoneeddetailsofyoursolicitor.

Onceyouacceptaproperty,youwillneedtopayareservationfeeandcompleteareservationformwiththelocalestateagent.Yourreservationfeewillbedeductedfromthecostoftheproperty.

Asolicitorisnecessarytoprocessandorganisethelegaldocumentsrequiredwhenpurchasingahome.Tryandfindasolicitorwhoisexperiencedinsharedownershipschemesandalwaysobtainaquotebeforeyouengagethem.Theircostsshouldincludetheirfeeplusthelandregistryfee,searchfees(whichchecksthatweactuallyownthehome we’re selling and whether there are anyplanneddevelopmentsthatwillaffectyourhome,forexample,newroads)andanyexpenses.

Onreceiptofyouracceptanceofouroffer,thelocalEstateAgentwillissueaMemorandumofSale(MoS)toallpartiesinvolved.TheMoSdetailsyourproposedpurchaseandsetsoutthetermsofthesale.

TheconveyanceprocessallowsSevernHomesstafftospeakwithyou,ourpurchasers,butthesolicitorscanonlyspeaktotheirrespectiveclients,andtoeachother.Pleasenote,youcannotdirectlycontactoursolicitorandwecannotdirectlycontactyoursolicitor.

You

YouYour

Solicitor

YourSolicitor

Severn HomesSolicitor

SevernHomesSolicitor

Severn Homes Severn

Homes

The Process 7

Step 5 — Arranging a mortgage Followinganofferofahome,youneedtoapplyforyourmortgageasthiscantakeatleast21daystobeissued.Duringthistimeyourmortgage lender will be preparing your mortgage offerandyoursolicitorwillbepreparingthelegalpaperwork.

MortgageAdvisors,canhelpyouarrangeamortgageandwillhandletheprocessingoftheapplicationforyou—savingyoutimeandalsoensuringtherighttypeofmortgageisobtained.

Ifyouprefer,youcanalsoarrangeyourownmortgagewithabankandbuildingsociety.

It is important that your advisor or lender is aware that you are buying a shared ownership property,theshareyouarebuyingandifthereareanyrestrictionsonthesale,ie,80%maximumpurchase,asthismayhaveanimpactonyourapplication.

Avaluerwillinspectyournewhomeonbehalfof your mortgage lender to ensure they are

happythepropertyissufficientsecurityfortheloanyouareapplyingfor.Thisshouldtakeplacewithinacoupleofweeksafterapplyingforyourmortgage.Yourlenderwillalsobeassessingyourapplicationandverifyingthedetailsyouhaveprovidedduringthistime.

Onceyoureceiveyourmortgageoffer,contactyoursolicitorstraightawaytoarrangetosignyourcontract.YoursolicitorwillneedtosendacopyofyourmortgageoffertoSevernHomes’solicitorsforapproval.Yoursolicitorwillnowalsoaskyoutopayyourdeposit.

Step 6 — CompletionOnceyouhavepaidyourdepositandsignedyourcontract,an‘ExchangeofContracts’cantakeplace.Oncethishashappenedthesaleprocessiscompleteandyouwillbegivena‘completiondate’tomoveintoyournewhome.

AnExchangeofContractsiswhensolicitorsswapthecontractssignedbyeachparty.Fromthispointonyouarelegallyboundtothepurchaseof

8 Severn Homes

your home and Severn Homes are legally bound tothesaleofit.Neitherpartycanchangetheirminds past this point!

Onthecompletionday,yourmortgagelenderwill,viayourSolicitor,giveSevernHomesthemoneytobuyyourhome.Oncethemoneyisreceivedthepurchaseiscompleteandyouarenowtheleaseholderofyourhome.SevernHomeswillthenreleasethekeystoyouforyournewhome.

The Severn Homes team will read the meters and providethemalongwithawelcomepackforyoutocollectwiththekeysfromtheLocalEstateAgent’soffice.PleasebeawarekeyswillonlybereleasedbythelocalEstateAgentoncetheyhavehadconfirmationfromSevernHomesthatthesalehascompleted.

TheWelcomePackwillinclude,

Ì informationaboutbeingahomeowner,

Ì instructionsforyourcentralheating,warrantiesandmanualsforappliances,

Ì NHBChandbookifapplicable,orequivalent,

Ì EnergyPerformanceCertificateandGasSafetyCertificatefortheproperty

Ì utilitymeterreadings,takenthedayspriortocompletion,andthesupplierdetails.

Wewilladvisetheutilitycompaniesofthemeterreadingsandadvisethelocalauthorityofyourcompletiondate.Youmustalsocontacttheseproviderstoupdateyourpersonaldetails.

Followingthecompletion,ourteamswillsetupyourrent,servicechargeandgroundrentaccounts.YouwillalsoreceiveavisitfromyourlocalNeighbourhoodOfficerwithinfourweeksofyourcompletiondate.

Yoursolicitorwillsendusa‘NoticeofChargeandTransfer’,whichisalegaldocumentconfirmingyournameandyourlendersdetails.Onreceiptof this Severn Homes will register the property inyourname.Untilyoursolicitorsendsthistous,youraccountwillnotbecompletelysetupsopleaseensuretheysendthispromptly.

For more information, please visit www.severnhomes.co.uk

How much should I expect to pay? 9

Itisimportanttoknowexactlywhatyournewhomewillcostyou,boththestartingoutcostsandyourmonthlycosts.Wehaveprovidedaguideforyou.

Starting out costsOnaverage,youshouldallowbetween£3,500and£5,000tocoverthecostsassociatedwithbuyingyourhome.Costsinclude:

Ì Reservation fee. This is the £500 you pay to reserveyourhomethroughthelocalEstateAgentonacceptanceofyouroffer.Thiswillbedeductedfromthetotalamountpayableatcompletion.

Ì Mortgage Advisor, Bank or Building Society Fee. There is normally a fee for the professionalserviceandadvicetheyprovidetosourceamortgageandprogressit.Thiswould be payable to the Mortgage Advisor directlyandusuallystartsfrom£225.

Ì Mortgage Valuation fees.YourMortgageLenderwillarrangeavaluationofyourhometoensureitisworththepriceyouarepaying.Thecostvariesdependingonthelenderbutusuallystartaround£400–500.You pay this when you apply for your mortgage.

Ì Mortgage Arrangement fees.Somemortgageproducts,usuallyfixedratemortgages,haveanarrangementfee(orapplicationfee)whichvariesdependingonthelender.Theyusuallystartfrom£500.

Ì Solicitors fees. These usually start from £500andincludeLandRegistryfees,localsearchfeesandotherexpenses.Partoftheirfeeisusuallytakenatinstructionwiththeremainderpaidoncompletion.

Ì Deposits. You will be required to leave adepositwithyoursolicitorwhenyou

exchangecontracts.Thiscanbebetween10–20%ofthevalueofyourmortgage.Likethereservationfee,thisisdeductedfromyourtotalpurchaseprice.

Ì Stamp Duty Land Tax (SDLT).YouhavetopayStampDutyLandTax(SDLT)ifyoubuyapropertyintheUKover£125,000.Thisischargedonallpurchasesofhouses,flatsandotherlandbuildings.However,whenbuying a shared ownership property through SevernHomes,therearetwodifferentwaystopay:

� Makingaoneoffpaymentbasedonthetotalmarketvalueoftheproperty.Thisisknownasa‘marketrateelection’forSDLT.Oncethisamountispaidyouwon’t be required to pay any more even ifyoustaircasetheownershiplateron.

� PayanySDLTdueinstages.Thefirstpayment will be based on the value of thesharepurchasedandnomorewillberequireduntilthesharereachesover80%.

FormoreinformationaboutSDLT,visit:https://www.gov.uk/sdlt-shared-ownership-property

Ì Removal Costs.Ifyouaregoingtousearemovalcompanyitisagoodideatogetquotesfromtwoorthreecompaniesasthecostcanvaryquitealot.Youcouldpaybetween £150 and £500 so it pays to shop around.

Ì Utility connection charges.Althoughtelephoneconnectionpointsarealwaysincludedinourhomes,ifyouaremovingin to a new build home you’ll have to pay a connectionchargetothephonecompany.Thiscostisusuallyaround£150

*Costs correct at the time of printing

how Much Should i expect to pAy?

10 Severn Homes

Monthly CostsEachmonthyouwillneedtopay,

Ì yourmortgage(onthepercentageshareofthepropertyyouown),

Ì rent (on the property share owned by Severn Homes),

Ì servicecharge,and

Ì groundrent(ifapplicable).

Your mortgageYouwillneedtomakeamonthlypayment,usuallybydirectdebit,toyourmortgagelender.Thesepaymentsprotecttheownershipofyourhome.

The mortgage payment is between you and your mortgagelender,butasapart-ownerSevernHomeswantstomakesuretheinvestmentisprotected,justasmuchasyoudo.Itisveryimportanttomaintainyourmonthlypayments.

What happens if I can’t afford my monthly payment? Ifyouthinkyoumightstruggletomakeapayment,oryouaregoingtomissapayment,itisreallyimportanttocontactyourmortgageproviderandtalktothemassoonaspossible.Mostmortgageproviderswillhelpyoutoworkoutasolution,butifyoudon’tgethelpyoucouldenduphavingyourhomerepossessed.

If your home is repossessed it will be sold to coverthecostofthemortgageandwillaffectyourcreditratingforthefuture.Ifthemoneyfromsellingyourhomedoesn’tcovertheamountowedtothemortgagelender,youwillberesponsibleforpayingthedifference.Losingyourhomeinthiswaycouldalsomeanthatyouwillhave problems getting a mortgage in the future andcouldalsoaffectanyothercredityoumaywishtoapplyfor.

SevernHomeswilldoeverythingitcantohelpyousortoutanyfinancialproblems,includingputtingyouintouchwithindependentqualified

How much should I expect to pay? 11

debtcounsellors.Ifyouareasharedownerwecanalsohelpyousellthepropertybeforeit’stoolate.

Your RentEachmonthyouwillpayyourrenttoSevernHomesbydirectdebit.Payingbydirectdebitmakespaymentsimpleandconvenientforeveryoneasthepaymentsaretakendirectlyfromyourbankaccount.YourrentwillgoupinAprileveryyearbyasetamount,asagreedinyourlease.Youwillbenotifiedofthenewrentamountatleastfourweekspriortotheincrease.

What happens if I am unable to pay my rent? Inordertobuildouraffordablehomeswe,likeyou,havetoborrowmoneyfromthebanks.Yourrent to us repays these loans so it is important tocontactusifyoucannotmakeapayment.Ifyoumissapayment,ourteamwillcontactyoutodiscussyourfinancialsituation.

Ifyoucontinuenottopayyourrent,youwillbechargedinterestandyoumayhavetopayanadministrationcost.

FailuretopayyourrentisabreachofyourleaseandmayforceSevernHomestotakelegalactionandevengotocourt,whichcouldmeanyouloseyourhome.

Ifyouareingenuinefinancialdifficulty,pleasecontactourCustomerServiceCentreon0300300 0059 and Severn Homes will do everything itcantohelpyou,includingarrangingpaymentplans,puttingyouintouchwithyourlocalbenefitagency,speakingwithyourmortgagelenderand/orputtingyouintouchwithanindependentqualifieddebtcounsellor.

Service ChargeAsaleaseholder,youwillberequiredtopayamonthlyservicechargetocoveranyorallofthefollowingcosts.

Ì Maintenanceandrepairstocommunalareas.

Ì Cleaningcommunalareas.

Ì Gardeningandgroundsmaintenance.

Ì Managementchargeandauditfees.

Ì Buildingsinsurance.

Ì Reservefundforcyclicaldecorationsand/ormajorworks.

Sharedownerscontributetotheservicechargeinthesamewayasanoutrightleaseholderwould.

Servicechargesarepayablebymonthlydirectdebit.Youshouldrefertotheleasewithyoursolicitorasthisconfirmswhattheservicechargecoversforyourproperty.

Please note we do not insure the contents of your home. You need to arrange your own content insurance cover.

Ground RentAsaleaseholder,especiallythosewhoownanapartment,youmayberequiredtopaygroundrent.Yourgroundrentwillbechargedasperthetermsofyourlease,withoptionstopayeitherbyanupfrontannualpayment,orbymonthlydirectdebit.Thegroundrentchargeswillincreaseoveraperiodoftime,detailsofwhichwillbecontainedwithinyourlease.

Other costsOthercoststhatyoushouldbudgetfor,andyouareresponsiblefor.

Ì CouncilTax.

Ì TVLicence.

Ì Water.

Ì Electricityand/orgas.

Ì Otherutilitiessuchastelephone,internet,satelliteTV.

12 Severn Homes

Repairs and maintenanceIfyouhaveboughtahouse,youareresponsibleforallrepairsandmaintenancetotheinsideandoutsideofyourhome.

Ifyouhaveboughtanapartment,youareresponsible for maintaining the inside and we willtakecareofanymaintenanceandrepairsontheoutside.

Onsomedevelopments,SevernHomesdon’towntheblockandinthesecasesanExternalManagingAgentislikelytoberesponsibleforrepairs,maintenanceandredecoration.Thisispaidforthroughyourservicecharge.

Repairs and maintenance for new homesItisnotuncommontohave‘teethingproblems’withnewhomes.Usually,anyissueswillbe

minor,suchascrackingasthepropertydriesout,orstickingdoors.Issueslikethesecanbereported to Severn Homes as long as you are the firstoccupierofanewlyconstructedhome.

Thebuilderwillalsoinspecttheproperty,usuallyjustbeforeayearfromthedateofthepropertybeingbuilt.Theywillarrangetomakerightanyrepairs,thoughtheywillnotrepairdamagecausedthroughday-to-dayuse.

YourhomeisalsocoveredbytheNationalHouseBuildingCouncil’s(NHBC)Warrantyorequivalent.Thiscoversyourhomefordefectsinthebuildingworkmanshipforthefirstyearaftercompletionofthepropertyandforstructuralproblemsfortenyears(insomecasestwelveyears).YoursolicitorwillgiveyouacopyoftheNHBCbuildmarkcertificate.

Alterations and improvementsYoumaydecorateandmakesimplerepairs

once you’ve Moved in

About Shared Ownership 13

withoutcontactingusorrequestingpermission.However,foranythingmorecomplicatedyouwillneedtocontactourCustomerServiceCentreon03003000059.Ifrequired,theywillarrangeforone of our surveyors to visit your home to assess theplannedworks.

Ifyourimprovementsaddbenefits(and,therefore,value)toyourhome,thenthiscanbetakenintoconsiderationifyoudecidetosellorbuymoresharesinyourhome.Forthispurpose,itisimportanttheworkhasbeenagreedtobeforehandandbysavingreceipts,costsandplansofthework.

It is important to note when you sell your home thatyouwillreceiveyourshareofthefullmarketvaluewhichtakesintoconsiderationanyhomeimprovements.Abuyerwillonlybuyasseenand will not pay additional money on top of the currentmarketvalueforworkyoumayhavedone.Soifyouowna40%shareyouwillreceive40%ofthefullmarketvalueatthetimeofthesale.

Changing your LeaseAs Severn Homes has an interest in your property,weneedtoapproveanychangesyouwishtomake.Forexample,anewmortgageneedsapprovalsoitcanberegisteredwiththeLandRegistry.Likewise,addingorremovingsomebody from your lease will mean we may needtoassessyoustillmeettheaffordablehomescriteria,orthatyoucancomfortablyaffordtheshareyouown.

RemortgagingdoesincurfeeswithSevernHomes,yourlenderandyoursolicitor.Pleaseaskformoreinformation.

Increasing Your ShareOnceyou’vesettledintoyourhome,youmaydecideyouwanttoincreaseyourshareoftheproperty.Thisiscalledstaircasing.ThefirststepistocheckyourleaseandtalktoyourSolicitor.

YourhomewillbevaluedbyanindependentRICsqualifiedvaluerandthatwilldeterminethecostofanyextrasharesyouwishtobuy.Thereare

somecostsinvolved—suchasthevaluationfeeandyourSolicitor’sfees—butthesewon’tbeashighasthecostsincurredwhenyoufirstboughtyourhome.

Thepriceyoupayforanyextrashareisbasedonthemarketvalueofyourhomeatthetimeyouwishtobuy,whichcouldgoupordown.

Pleaseaskformoreinformationonstaircasing.

Selling your homeDependingonthetermsofyourlease,youneedto notify Severn Homes if you wish to sell your shareinyourhome.SevernHomeshastheoptiontobuybackyourshareofthepropertyorwillhelpyoutosellyourhome.SevernHomesusuallyhaseightweekstofindabuyerforyourhomewhomeetstheaffordablehomescriteria.Ifweareunabletosellyourhome,thenyoumaychoosetomarketitwithanEstateAgentofyourchoice.Thebuyermustmeettheaffordablehomesrequirements.

Likestaircasing,yourhomewillbevaluedbyanindependentRICsqualifiedvaluerand,likeanyhome,thevalueofyourpropertycanriseorfalldependingonthehousingmarket.

Ifyouareconsideringsellingyourshare,pleasecallusforachatandtogetmoreinformation.

We look forward to welcoming you to your new home!

To view our available Shared Ownership properties, visit www.severnhomes.co.uk

Once you’ve moved in 13

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tel: 0300 300 0059eMAil: inFo@SevernhoMeS.co.uK

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