Offering islanders a realistic way to get on the property ladder
What is partial ownership?
It offers first-time buyers a realistic way to get on the property ladder.
Partial Ownership is for buyers who cannot afford to buy a property in the normal housing market but could afford to buy part of the cost of a property.
How does the partial ownership scheme work?
If you are able to support a mortgage but the bank cannot lend you enough to purchase a property on the market suitable for your needs, then the partial ownership scheme may be for you. As only a portion of the property is purchased, you need to borrow a lesser amount from the bank and pay a discounted rent on the part still owned by the GHA.
You purchase the maximum you can afford, between 40% and 80% of the property value, at the time of the initial purchase. At a later date you can purchase more of your property in multiples of 10% of the current value. This is called ‘staircasing’.
The benefits of partial ownership
You do NOT need a 5% or 10% Deposit as NatWest International 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
We currently have 107 people on the waiting list - 12 Feb 2019