Bovis Homes is working in partnership with heylo to offer Home Reach, a part-buy-part-rent option on selected properties across the country.
Just announced: Stamp duty relief for first-time buyers using shared ownership! Further detail below.
With Home Reach, you buy a share of your chosen home and pay a low monthly rent on the part you don't buy. You get to choose whether you buy a bigger share of a lower priced home or a smaller share of a more expensive one.
With the Bovis Homes partnership you can initially purchase up to 75% of your chosen home and heylo will become your landlord, granting you a 125-year lease. This means you will be able to live in your home as if you've bought it outright. You can buy more of your home in the future and stop paying rent on that part.
Launched in September 2014, heylo has created one of the largest home ownership programmes in the UK, offering a number of different routes to ensure owning your own home is accessible.
Bovis Homes are working in partnership with heylo to offer Home Reach, a part-buy-part-rent option on selected properties across the country.
Home Reach is simply about helping you get on, climb up and stay on the property ladder.
Home Reach… A more affordable way to buy
Smaller deposit requirements and lower monthly payments make it easier to buy the home you've always wanted.
You decide how much of your home you would like to buy, with shares between 50% and 75% (on a small number of developments there is the opportunity to purchase a lower percentage)
You are able to purchase your share with either cash savings or by taking out a mortgage. If you are taking out a mortgage to finance your share, then you will typically need to allow for at least a 5% deposit. The larger your deposit, the lower your mortgage payments will be.
On the share you don’t own, you will pay annual rent of 2.75% of the unsold value. This will be paid monthly by direct debt.
|50% Share Value||£75,000||£100,000||£125,000||£150,000||£175,000|
|Mortgage(3.5% interest rate)||£67,500||£90,000||£112,500||£135,000||£157,000|
|Monthly Mortgage Payments||£341||£455||£569||£676||£789|
|Monthly Combined Cost||£513||£684||£855||£1020||£1190|
|Indicative Income Requirement||£20,000||£26,000||£33,000||£37,413||£43,536|
Figures above are based on a 25 year repayment mortgage and a Home Reach lease with an initial rent of 2.75% on the unpurchased property value increasing by RPI + 0.5% each year. Your home may be repossessed if you do not keep up with payments on your mortgage or shared ownership lease. Additional service charges may be payable on properties with communal facilities or services. You will also need to consider the responsibilities and associated costs involved with owning a home (such as insurance and maintenance).
You are eligible to purchase a Home Reach property in England or Wales if:
Buying a Home Reach property is just like buying any other Bovis Home, and our sales team will assist and advise you every step of the way.
What's included in your Home Reach lease
The lease sets out:
What are your rights and responsibilities?
You are responsible for all utilities bills, repairs and redecoration of your property. It’s your place, your space – so make it your own!
The only exception would be if you wanted to make any structural changes. For this you would need to apply in writing to heylo outlining the changes you would like to make. heylo will review the application and will be in touch with a decision or requesting more information.
Once you’ve moved in
Once you've moved in, a member of the heylo team will be in contact.
Your welcome letter will outline who your managing agent will be, they will be responsible for collecting your rent and answering any questions you may have about your property and lease as well as guiding you if you decide you would like to staircase or sell.
Will I have to pay stamp duty?
As announced by the Government in the recent budget, if you’re a first-time buyer using shared ownership you will no longer be required to pay Stamp Duty on the first £300,000 on properties valued up to £500,000. This is a saving of up to £5,000!
Whether you’re a first-time buyer, or moving up the property ladder, you only pay Stamp Duty on the share you are purchasing.
Use our handy stamp duty calculator to work out how much you will need to pay.
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Home Reach is a new build ownership solution brought to you by heylo housing group. The Home Reach shared ownership scheme cannot be used in conjunction with any other Bovis Homes purchase scheme, offer or promotion. Subject to affordability criteria as prescribed by Homes England. Subject to individual mortgage lender qualification and affordability criteria. More information on eligibility and affordability of using Home Reach to purchase your home can be found at www.homereach.org.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT