With Home Stepper, you can purchase a share of up to 75% of your new home. The exact amount is based on your level of affordability.
Sage Homes will become your landlord and grant you a 990-year lease. You'll pay rent on the unowned share of your home but can live in it as if you've bought it fully. In the future, you might decide to reduce your rent payments by buying more of your home. Only selected new build homes at certain developments can be bought using the Home Stepper scheme.
Offering affordable housing is a priority for Sage Homes – so much so that they're England’s largest provider of affordable new builds. They're a registered provider and help people secure new shared ownership and rental homes.
In the last five years, Sage Homes has matched tenants and buyers with over 10,000 new homes. They play a big role in helping to address the UK's housing crisis by ensuring there are plenty of affordable homes on the market.
Find out more about Sage Homes.
Home Stepper makes buying new build Bovis Homes more affordable. With lower monthly payments and smaller deposit requirements, you're more likely to be able to afford the new home you've always wanted.
You can use cash savings or take out a mortgage to purchase your share. Taking out a mortgage means you'll generally need to allow for at least a 5% deposit. A larger deposit means lower mortgage payments, though.
You'll pay rent to Sage Homes on the portion of the property that you don't own. The amount will be 2.75% of the unsold value.
To be eligible for one of our new build homes using Home Stepper, you'll need to make sure:
Are all Bovis Homes available on the Home Stepper scheme?
Home Stepper is available on selected Bovis Homes. You can see our eligible new homes on our website and our experienced Sales Consultants will be able to update you on availability.
How much of a property can I buy through Home Stepper
Depending on your individual financial circumstances, you can start by buying up to a 75% share of your home. This can be tailored based on your level of affordability.
Will I be able to increase my share?
You have the option to increase your share over time. This is done through a process called ‘staircasing’, so you could eventually own 100% of your home. When that happens, there'll need to be a transfer of the freehold interest of the house or a transfer of the full leasehold interest of the apartment/flat.
How much rent will I pay when using the Home Stepper scheme?
You'll pay rent to Sage Homes. The monthly amount will be dictated by the size of your share and the value of the home you choose. You'll pay rent on the unpurchased share of your home (owned by Sage Homes) at a rate of 2.75%.
Will my rent go up?
Rent will be reviewed on 1st April each year. Generally, any change will equate to the year-on-year change to the Retail Price Index (RPI) plus 0.5%. You can view these terms in your Home Stepper lease and our Sales Consultants will be happy to explain anything further.
Are there other regular payments to be made under the Home Stepper scheme?
There will be other payments on top of the rent you pay to Sage Homes. You'll need to pay 100% of your household bills, including:
The amount you pay will vary depending on personal consumption and the home you choose.
Is there a leasehold management fee?
You'll pay an annual leasehold management fee and service charges directly to Sage. The leasehold management fee is £195 per annum and increases each year with inflation. All the Home Stepper scheme terms and all other costs can be found in your lease.
Does shared ownership mean sharing with another person?
“Shared ownership” means you're acquiring a percentage share of a home. In this instance, Sage Homes will own the remaining percentage of the unacquired share. You can live in the home as if you own it outright (subject to the terms of the lease).
You can purchase a Bovis Home with another person, but this is not a requirement of the Home Stepper shared ownership scheme. Note that your combined household income must not exceed £80,000 (£90,000 in London) if you're purchasing the property with someone else.
Will I need to arrange home insurance under the Home Stepper scheme?
Buildings insurance will be provided by Sage Homes and payment for this will be included within the service charges. You can find out the exact amount by checking with your IFA. Contents insurance will need to be arranged separately.
What if I want to sell my Home Stepper property in the future?
You can sell your home whenever you like. To start the process, you'll need to let Sage Homes know. The sale value of your home will then be determined by an independent RICS valuation. Any purchaser(s) will need to be eligible for the Home Stepper scheme. After receiving your intention to sell notice, Sage Homes has four weeks to nominate a purchaser(s) (Sage Homes nominee). This allows other people to benefit from the scheme.
If Sage Homes fails to secure a nominee that exchanges contracts with you within 12 weeks of your solicitor issuing the draft sale contract (and related sale documentation), you can sell your home on the open market.
Assuming you progress to selling your home on the open market, you must repay the market value of the share Sage Homes owned before the sale. This must be done on completion of the sale.
Other fees you'll need to pay include:
Will I need to pay stamp duty?
You'll need to pay stamp duty when looking for new build homes under the Home Stepper scheme. This will be determined by the percentage share of the home you're purchasing, taking into account allowances that may be offset against the stamp duty payable. Your solicitor can calculate this for you.
Who's responsible for any repairs my new build home needs?
Any repair works that aren't covered by the Bovis Homes two-year customer service warranty or the NHBC’s 10-year building warranty must be completed and/or paid for by you.
White goods (e.g. fridge, washing machine) that are sold with your chosen home will be covered by an individual guarantee. This will be given to you on legal completion.
Can I decorate my new home under the Home Stepper scheme?
Your new home can be decorated however you like, but you'll need to ask for permission from Sage Homes/Bovis Homes and seek relevant planning permission if you plan to make significant changes like building an extension, for example.
The documentation you receive upon completion will detail what alterations you can and cannot make to your home.
Can I have pets in my new Home Stepper home?
Because Sage Homes is the provider of the Home Stepper scheme, you'll need to ask for their consent. You can contact them directly to do this.
Can I have a lodger or sublet my Home Stepper home?
Many other shared ownership leases prohibit fully subletting your home, but Sage Homes may consider granting permission for you to take a lodger. To instigate this, you'd need to contact Sage directly.
Are there any additional administration fees?
There are additional fees you will need to be aware of.
Most landlords of leasehold properties will be made aware of your mortgage lender. This is because the lender will register a Legal Charge on the title to the property. Sage Homes will need to approve your mortgage offer, which comes with a charge of £50 (+VAT).
On top of this, Sage Homes will need to be served a Notice of Charge (notice of your mortgage lender) in accordance with the terms set out in the lease. The Notice of Charge fee is £75 (+VAT).
The solicitor acting for you when purchasing the property will include these fees in your completion statement and you'll pay them on the day of completion. However, neither of these fees will apply if you're buying your share without a mortgage.
Are Home Stepper properties covered by the Consumer Code or NHQC?
The Consumer Code and New Homes Quality Code (NHQC) do not cover shared ownership properties.
§Home Stepper is available on selected new build homes only, subject to contract and eligibility criteria. Home Stepper is a new build shared ownership scheme brought to you by Sage Homes. The scheme is subject to individual mortgage lender qualification and affordability criteria as prescribed by Homes England. The scheme is subject to you first obtaining approval from Sage before reserving a new home from us. Eligibility for the scheme may be withdrawn at any time prior to reservation. Sage may also require evidence of your financial ability to proceed with the purchase of a new home from us. Shares from 10% up to 75% of the new home are available. Prices advertised can represent up to a 75% share of the new home. Rent will be charged at 2.75% of the unacquired equity share and is reviewed annually in line with the year-on-year change to RPI in the preceding 12 months plus additional 0.5% and an annual fee of £195, payable monthly. The property will be sold on a shared ownership leasehold basis with a term of 990 years and a buildings insurance contribution is also payable. You will also be liable to pay managing agent costs plus an administration fee payable to Sage. You will be an assured tenant with Sage Homes as the landlord until such time as you staircase to own 100% of the property. In addition, a mortgage approval fee of £60 and a notice of charge fee of £90 will be payable to Sage Homes on completion. More information on eligibility and affordability of using Home Stepper to purchase your new home can be found at www.sagehomes.co.uk. Home Stepper is also subject to the terms and conditions of Sage Homes. Home Stepper cannot be used in conjunction with any other offer, discount, promotion or scheme. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Subject to individual lender terms and conditions. Our usual reservation and sales terms and conditions also apply. Please speak to one of our sales consultants for more details.
References to “we”, “us” or “our” are to the part of the Vistry Group (including Linden Homes, Bovis Homes, Countryside Homes, Drew Smith or one of Vistry’s joint venture companies) from which you are intending to purchase a new home. References to "you” and “your” are to the prospective buyer or buyers of a new home from us.
All images are used for illustrative purposes only and are representative only. They may not be the same as the actual home you purchase and the specification may differ. Images may be of a slightly different model of home and may include optional upgrades and extras which involve additional cost. Individual features such as windows, brick, carpets, paint and other material colours may vary and also the specification of fittings may vary. Any furnishings and furniture are not included in any sale. Please check with our sales consultants for details of the exact specifications available at the development(s) for each type of home and the associated prices.
