Partial ownership housing

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. 

Find out more here.

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’. 

Here are some guidelines on potential mortgage and rent costs for buyers – please bear in mind that Bank mortgage interest rates and terms, and house prices, change over time so these figures are only a guide and should not be used as firm up to date figures. The mortgage figures were provided in December 2020 by Skipton International and will vary depending on the mortgage applicant's salary level, number of children, outgoings, sole or joint application, ages of applicants, and the rent  and service charge also to be paid.

Example of one bedroom apartment

One-bedroom flat with kitchen, lounge, bathroom and allocated parking.

Property guide value of - £250,000.00

As a comparison with Social Housing rented property, the monthly rent in December 2020 would be £862.

*Monthly partial ownership guide figures quoted as at December 2020:

In addition there will be a service charge for any landlord communal costs such as any GHA maintained roads, paths, parking spaces, drainage, landscaping, roofs, walls, CCTV, etc.  For an apartment, this monthly cost could be between £150 to £180 dependent on the landlord services provided.  All partial owners are responsible for their own maintenance costs. 

This is based on a 30 year mortgage at our current rate of Base + 3.75% = 4.5%

Example of two bedroom house

Two-bedroom house with kitchen, lounge, bathroom, garden and allocated parking.

Property valued at - £370,000

As a comparison with the Social Housing rented property, the monthly rent in December 2020 would be £1,166.

Monthly Partial Ownership guide figures quoted as at December 2020:

In addition there will be a service charge for any landlord communal costs such as any GHA maintained roads, paths, parking spaces, drainage, landscaping, CCTV, etc.  For a house, this monthly cost will vary depending on the estate specific services provided and could be around £120.  All partial owners are responsible for their own maintenance costs. 

Example of three bedroom house

Three bedroom house with kitchen, lounge, bathroom, garden and allocated parking.

Property guide value of £440,000.

As a comparison with the Social Housing rented property, the monthly rent in December 2020 would be £1,417.

Monthly Partial Ownership guide figures quoted as at December 2020

In addition there will be a service charge for any landlord communal costs such as any GHA maintained roads, paths, parking spaces, drainage, landscaping, CCTV, etc.  For a house, this monthly cost will vary depending on the estate specific services provided and could be around £120.  All partial owners are responsible for their own maintenance costs. 

Waiting time

With our current waiting lists and the new housing being built, the waiting time to be offered a partial ownership property is between 3 to 4 years.  We are hopeful during 2021 of securing more land and obtaining planning permissions and funding to plan to build more rented and partial ownership housing.  Whilst applicants are waiting it gives them an opportunity to save up and pay off any debts which will improve the chances of securing a Bank mortgage on good terms.    

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

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.

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 stair casing 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.

How do renovations or structural alterations work in a partially-owned property?

Before you carry out any works, you would need to contact The Guernsey Housing Association for prior permission.

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.