Home Ownership: Qualifying Criteria

HOLD uses shared ownership to enable disabled individuals with a range of different impairments to part buy (together with a Housing Association) a home of their own. The buyer can purchase a home from the open market or a Housing Association development. They’ll purchase a share (typically 25% - 75%) using an interest only mortgage (they can borrow up to £100,000), the Housing Association buys the remaining share and charges them rent (paid for by Housing Benefit). They’re free to remain in their home for as long as they wish, with the mortgage being repaid when the property’s sold. The mortgage itself is paid through Support for Mortgage Interest (SMI) with an additional top up payment being made from their other benefits (NB: In April 2018 SMI changed from a benefit to a loan which is repaid from any equity left on the buyer’s share when the property’s eventually sold, the sum repaid CANNOT exceed this remaining equity so any shortfall will be written off). To ensure that they have sufficient income to make these payments this model is only open to buyers on High or Middle Rate Care Disability Living Allowance (DLA). We also insist on a number of other strict qualifying criteria. They must be:

• 18+ years old with clean credit history and no outstanding debts
• In the ESA Support Group or Universal Credit equivalent
• Unable to work in conventional employment
• In possession or in the process of arranging a suitable Care & Support package, either with a Local Authority, a private care provider or their family
• Able to prove their mental capacity or have Court of Protection or Lasting Power of Attorney in place
• Looking to live on their own – they can share but with caution!
• Able to put down a deposit and pay fees associated with buying their new home – this costs c. £15,000 - £20,000 (this includes a 10% deposit on the property PLUS getting them ready for home ownership and ensuring it’s sustainable) AND able to contribute to their housing costs of c. £30 per week. NB: Mortgage products and deposit requirements can and do change, so please contact us to find out the very latest information.

If you meet these criteria and are interested in exploring home ownership call us today on 02476 402211 to see if you may be eligible!

To find out more about the process involved in buying a home using this scheme please download a copy of a comprehensive MySafeHome Guide to Buying a Home of Your Own.

Download MySafeHome guide to buying your own home (.pdf)