h&f Home Buy Products
There are a number of products which may be available to you.
Discount Market Sale (DMS)
What is DMS?
DMS is a low cost home ownership product where a new build property is purchased at a discounted price. The discount is usually around 30%. This is possible because when the development was negotiated with the council, this discount was stipulated to try to help low and middle income earners get onto the property ladder.
The purchaser buys the percentage of the property available after the discount and when s/he sells the property it has to be sold at this same percentage of whatever the market value is at the time of sale.
Applicants will need a mortgage and/or savings to cover the discounted price of the property. For example, if the property has an open market value of £400,000 then the discounted price is £280,000.
The remaining 30% is held in perpetuity by the London Borough of Hammersmith & Fulham and there is no rent to pay on this part of the property so your housing costs will be your mortgage payments and the service charges.
Rent to Homebuy
Enables residents and workers of Hammersmith and Fulham to move into a New Build HomeBuy property and pay a rent at 80% of the market value for a period of time (3 – 5 years maximum). You may able to purchase the property, if you wish to do so, at any time during the rental period (subject to landlord’s consent).
Why choose Rent to Homebuy?
- You have the chance to ‘try before you buy’. You will move into a newly built development and live in a property for a while before deciding whether to buy it or not.
- Properties are brand new and boast new fitted bathrooms and kitchen units.
- Renting at 80% of the market price may enable you to save more money to help you buy a home in the future.
- You benefit from renting from socially registered landlords (RSLs) whom are committed to offering you affordable home ownership options to enable you to buy your home in the future.
What happens at the end of the rental period?
You may be able to make the first offer to buy your home under the terms of New Build HomeBuy.You will be assessed to determine your ability to purchase the minimum share of the property usually 25%*. If the assessment shows that you can not afford to purchase the share, the RSL will review your tenancy. However whilst there are no guarantees that it will be renewed your landlord may assist you in finding another privately rented property.
*minimum shares may very
New Build Homebuy
(Part-buy part-rent, previously called shared ownership) Enables residents and workers of the Borough to buy a share of a newly built property
- You buy between 25%-75% of a home and rent the remaining share,
- Over time you can buy more shares in the property (a process known as staircasing) and in doing reduce the amount of rent you pay,
- You can keep buying shares in the property until you own the property outright. Once this happens you stop paying rent,
- If at anytime you wish to sell the property you keep the percentage of the property’s current market value that you own.
Right to buy
This is for council tenants who wish to buy their council property outright receiving a £16,000 discount on the total value of the property.
To be eligible, you must have been a tenant for 5 years if your tenancy began after 18 January 2005 or for two years if you were a tenant before that date. Some properties are excluded, including those related to your employment and some housing provided specifically for older people or those with disabilities.
Social Homebuy
Offers eligible tenants of the borough a chance to buy a share of the market value of their home as well as benefit from a discount of between £4,000 to £16,000.
The amount of discount you will receive will be in proportion to the share of the property you buy. A proportionate discount is available on all shares you buy, up to a maximum of £16,000. For example, if you were to initially purchase 25% of the property you would be entitled to a £4000 discount of the value. If you purchase any more shares (staircasing) in the future you would also be entitled to further discounts in proportion with the share you buy. A minimum of 25% of the property’s value must be purchased and rent will be payable to the council on the share you do not own.
If you wish to sell at anytime, you keep the percentage of the property’s current market value that you own. However, if you sell within the first five years of the initial purchase a proportionate discount is repayable to the council and we will have first refusal on whether to buy the property back at the current market value or nominate a purchaser.
Tenant incentive scheme
This scheme offers those council tenants with a 2+ bedroom property, significant financial assistance to purchase a property of their own*. This grant is dependent on the size of the accommodation, and will range from £20,000 to £40,000. This scheme runs to March 2011.
Eligibility
- Secure council tenants occupying 2, 3, 4 or more bedroom properties.
- Must have had a secure tenancy for 2 years if it began prior to 18th January 2005 or 5 years thereafter.
- Tenancy must be managed to a satisfactory level (i.e. no rent arrears, breaches of tenancy etc…)
- The property must be in good condition
- The tenant must be able to provide unquestioned vacancy of the property
There are also additional grants which you may be eligible for. These will be discussed with you upon the completion of your application.
*terms and conditions apply
First time buyers initiative (FTBI)
Enables aspiring first time buyers, who are unable to buy a home on the open market, to purchase a new property with the help of an affordable mortgage and with Government contribution on a designated FTBI development. This contribution is paid directly to the builder of the development on behalf of the client, which will enable the first time buyer to take out an affordable mortgage (a minimum of 50% of the total purchase price) on which they make repayments.
Through this scheme you can buy a share in a brand new home. You usually pay a mortgage on the part you own but make no repayments on the part you do not own for the first three years. If you sell the property or leave a designated profession, you will be required to repay the same percentage contributed when you purchased the property. E.g. if we contributed 30% when you purchased; you repay 30% of the selling price when you sell.
Right to acquire
Enables housing association tenants to buy their current property outright at a discount
Eligible housing association tenants may have the right to acquire their home at a discount where the property was built or acquired by the Housing Association with public funds since 1 April 1997, or transferred from a local authority to the Housing Association. As with Right-to-Buy, to be eligible you must have been a tenant for 5 years if your tenancy began after 18 January 2001, or for two years if you were a tenant before that date. Some properties are excluded including those related to your employment and some housing provided specifically for older people, or those with disabilities.
For more information about the different products, to register an interest, or to discuss which product would best suit your circumstances, please contact us on 020 8753 6464, via email to h&fHome-Buy@lbhf.gov.uk.
