FAQ's
What am I entitled to as a Leaseholder?
When you purchase a home via
a shared ownership or discounted sale scheme you
become a Leaseholder. You are entitled
to live in your home until the lease expires, usually 99 or 125
years. You are responsible for the decoration and maintenance of
your home but there are usually restrictions on the structural
changes you can make to your home (ie. extensions) without the
consent of the Freeholder (Broadacres). Full details are contained
within the Lease.
What are the costs involved in buying a home?
You will usually need access to a minimum
of £2500 to cover the costs of:
- Survey
- Mortgage arrangement fee
- Legal Fees
- Stamp Duty (if applicable)
- Removal costs
In addition, normally you can expect to pay a deposit for your
mortgage. The amount of the deposit varies depending on the
lender and type of mortgage you need. In the current market
conditions, mortgage lenders are asking for deposits between 5% and
30% of the purchase price.
Please note Broadacres do not permit additional borrowing on top
of your mortgage (ie. maximum acceptable mortgage amount is equal
to sale price).
What are the ongoing costs of running a home?
You should expect to pay the following running costs as a
home-owner:
- Mortgage repayments
- Low cost rent (based on the share you do not own, only
applicable to shared ownership schemes)
- Ground rent £250 per year (only applicable to Discounted
Sale)
- Service charge (if applicable)
- Repairs and maintenance costs
- Buildings insurance approximately £50 per year (to
Broadacres)
- Contents insurance
- Council tax
- Heating and lighting bills
- Water and sewage charges
- Fittings and furniture
- TV licence
What happens if I want to sell?
When you intend to sell your home you may do so at any time
(subject to the terms and conditions of your lease) but first you
must inform Broadacres in writing. Whether your home is Discounted
Sale or shared ownership an open market valuation will
have to be carried out by an independent chartered surveyor at your
cost. The price you sell at will be determined by the share you own
or % of open market value that you paid. You will benefit from any
increase in the value. As with any home purchase, you would also be
affected by any decrease in value.
Disclaimer:
Please note that these are guidance notes only. If your
application is successful you will receive a copy of the Lease
specific to your home, which you must ask your solicitor to explain
to you. You must also obtain your own financial advice.