The demand for shared ownership outweighs supply, as a result it is essential that we are clear in how we allocate and offer our shared ownership homes to prospective eligible customers. Shared Ownership is Government funded and as part of our funding conditions we are required to comply with the Homes England Capital Funding Guide and deliver our homes providing a fair and transparent service. Here is a link to the Capital Funding Guide which provides more information.
Hyde will consider all shared ownership applications we receive in an impartial, equitable and consistent manner. The Capital Funding Guide states that we are required to publish clear information relating to a first come first served policy and a surplus monthly income policy.
Customers looking to purchase a new build or resale shared ownership home outside of London will be allocated a home on a first come, first served basis, subject to following the process below. All customers will still need to meet our Shared Ownership affordability and eligibility criteria for the home and follow the offer process fully to complete a reservation.
The exception to this will be where the Government has determined priority groups and or specific requirements for a development (such as armed forces personnel or age specific purchase criteria). Our Sales Team will be able to advise you on this where relevant to a home or scheme.
The first interested customer to successfully complete an initial affordability check will be given the opportunity to reserve the home first. Our resale team will place you in contact with an independent advisor from Hyde’s panel who will complete the initial affordability check with you. Once this has been completed the Advisor will update us with the outcome and the first successful affordability check received (which will be dated and time stamped) will then be offered the home and be provided with the next steps on the process.
The first interested customer to submit a Development Specific Reservation Form will be given the opportunity to reserve a home first, based on their plot preferences recorded on the form.
The reservation form will be dated, and time stamped by the team dealing with the sales and will be made based on receipt of the form. If a reservation form is received by e-mail then the date/time of the email will be used as reference. To ensure you meet the eligibility criteria for a shared ownership home you will need to complete our on-line application form Application Form – Shared Ownership
Customers will subsequently be required to complete a successful initial affordability check from a panel of Advisors and to have completed a Hyde New Homes application form before a home can be allocated and the offer process can commence.
Due to the specialist nature of Shared ownership mortgages the Advisors that we work with are suitably qualified with expertise and experience in shared ownership. The affordability check is free of charge and determines that the home is affordable for you. You are not obligated to arrange a mortgage with the Advisor undertaking the assessment.
Hyde New Homes must be satisfied that our customers can comfortably afford to buy the home that they are interested in and maintain the future costs of home ownership.
Once you have successfully completed the initial affordability check and the offer has been made a 2nd stage affordability assessment is required which goes into further detail of your financial circumstances.
This 2nd stage assessment will be based on the advisor completing a budget planner with you which will take into account your income and expenditure. This will also ensure that the mortgage you can secure is no more than 30% of your net income after considering your firm commitments which include the rent and service charge payable on your new home.
You will also have to have a minimum of 10% of your income remaining after all your expenditure has been accounted for. This assessment will also factor a stress test on potential rent increases on the unsold equity over a 5-year period.
Any customer wishing to purchase a shared ownership home with out a mortgage will still need to follow the same 2 stage process.
For those purchasing a home outside of London a cash purchase will only be considered where a customer is unable to obtain a mortgage or where no suitable mortgage product is available. Examples of this would be where your age may mean that a mortgage product is not available or on the basis of your religion. An exception to this is if a mortgage product is unavailable due to a customer’s adverse credit history. In this instance we will not proceed with the offer of a shared ownership home.
For homes sold within London cash buyers will only be approved in exceptional circumstances and Hyde will need to obtain authority to proceed from the Greater London Authority.
Hyde retain the right to reject an application on the grounds of non-disclosure of key information which would render an application to be non-compliant with the Capital Funding Guide.
For further information please contact us on 0345 606 1221