Partial ownership housing

Partial Ownership helps people who cannot afford to buy a home outright get onto the property ladder. You purchase a share of a home (between 40% and 80%) and pay a reduced rent to the Guernsey Housing Association on the remaining share that it retains ownership of.

You live in the property as an owner-occupier and are responsible for your share of costs as set out in your lease.

Find out more here.

You may be eligible if:

• you can afford mortgage repayments but cannot purchase a suitable home on the open market
• your income meets affordability requirements
• you are able to sustain ongoing housing costs, including rent and mortgage payments

Mortgages may be available from participating lenders, subject to affordability and lending criteria. A deposit may not always be required, depending on the lender and individual circumstances, although saving is encouraged as it may improve your options.

• You purchase between 40% and 80% of the property at the time of purchase
• You pay rent on the remaining share owned by GHA
• You live in the property as an owner-occupier
• You are responsible for ongoing costs as set out in your lease

You will be expected to buy the maximum share you can reasonably afford at the time of purchase.

Costs

Typical costs include:

• legal fees (approximately £3,000 depending on the property and circumstances)
• mortgage arrangement fees (if applicable)
• valuation fees (when required for staircasing or resale)

There is:

• no document duty
• no court fee

Legal conveyancing is carried out by approved local firms, and fees are generally based on the share purchased rather than the full property value.

Staircasing (buying more of your home)

After a minimum of 12 months, you may be able to increase your ownership share in minimum 10% increments.

Each additional share is based on the current market value of your home at the time of valuation.

As your ownership increases:

• your rent to GHA reduces
• your equity in the property increases

Staircasing is subject to affordability and valuation at the time of purchase.

Selling your home

If you decide to sell your Partial Ownership property, it will normally be sold back to the Guernsey Housing Association at open market value, based on an independent valuation.

To complete the sale, you will need to:

• ensure the property is in good condition and meets lettable standards
• allow access for valuation and viewings where required
• complete the legal handover process within agreed timescales

The property is then reallocated to applicants on the Partial Ownership waiting list.

To be updated, please contact the GHA for further information.

You do NOT need a 5% or 10% Deposit as NatWest International, Butterfield Bank and Skipton International can both offer 100% mortgages on the equity stake being purchased (up to a maximum of 80% of the value of the property) subject to the applicants meeting the banks requirements.  We do strongly encourage people to regularly save and any deposit puts you in a better position to secure a mortgage.

You need averagely £3,000 for legal costs, and mortgage fees

There is no Document Duty payable

There are no Court fees

The two main Advocate firms who handle the conveyances charge their fees based on the equity value you buy (as opposed to the full value of the property) which keeps your legal costs down.  The Advocates are Collas Crill, and Ogiers.

You can buy between 40% and 80% of the value of the property dependent on your finances.  You are required to buy as much as you can comfortably afford.

When you wish to sell in the future GHA are a guaranteed buyer from you, for whatever the property is worth at that time, valued by an independent local valuer approved by the Banks

As your finances improve over time you can buy more value in the property, reducing the rent you pay GHA (for the share we still own), and you can then sell back to GHA and buy in the private sector using the equity that should build up over time (all subject of course to movements in house prices) 

You are an owner occupier, able to improve and adapt your home

You own part of the value of your home and get the benefit of that share if prices increase over time

GHA has sold over 220 partial ownership homes over the last 13 years, plus over 60 re-sales of existing properties when people have sold back to us and GHA sells on to new people from the waiting list

How long should I expect to hear back about my Partial Ownership application, once submitted? 

Once an application has been received into the office, you will hear back from our Allocations Officer within 28 days.  It is important that you submit the application with all of the supporting documentation so that there are no further delays in processing.  A full list of documentation to be submitted can be found on the back of the form and these documents are to be submitted for both applicants. If you don't submit all of the required information, it will take longer to process your application.

Are the minimum income requirements based on one person or can a joint income count towards the minimum amount required?

The minimum earnings are based on the total gross amount received per annum.  This can be solely or jointly, depending on if this is a sole or joint application.

Is there a minimum time period before you can begin staircasing your property?

The minimum period would be 12 months before you can staircase. If you are wishing to staircase, you would need to get your property revalued and the staircasing amount would be based on the valuation of your property.

When staircasing does the 10% have to come as a chunk amount or can it be in instalments/increases to the mortgage payments?

The minimum amount you can staircase would be 10% and 10% increments thereafter.

Is there a limit to the number of times you can apply for partial ownership?

No, if you are rejected for any reason you can reapply at any time if your circumstances were to change enabling you to be eligible.

Can you make parish preferences when it comes to partial ownership applications?

Yes.  If you are offered a property and you do not wish to continue with the allocation, you can refuse and you will remain on the list as of your date of application.  There are no penalties when refusing a partial ownership property.

If you have any questions or would like to make an appointment to discuss Partial Ownership further, please to not hesitate to contact Nicky our Allocations Officer on 01481 240863.