The following guide takes you through each stage of the shared ownership sales process from the marketing of a scheme right through to handover of the keys. This will help you to understand what to expect at each stage of the process.

If you are considering buying through the shared ownership scheme then it is recommended that you read through all of our guides, so that you know what to expect throughout the process.

 

Application

Once you have found a Coastline development or property that you are interested in, you will need to register your interest through the local Help to Buy Agent (Help to Buy South). Once you have registered your interest, a member of the Sales Team will be in touch with further information about the development/property, if there is still availability. The team will provide an application form and an online link to get your financial assessment underway. If you are having trouble with the online application process, please contact a member of the Sales Team.

When returning your application and GDPR forms we will also require your proof of ID. If there are local connection requirements for a property that you have applied for, we will also require your proof of local connection. You can demonstrate your local connection in a number of ways, some examples would be; your electoral roll certificates or council tax bills.

The financial assessments are carried out by The Mortgage People (TMP – more information on TMP can be found on our FAQ’s guide). TMP will collect some financial information from you in order to carry out an initial financial assessment. The assessment should provide us with enough data to make a decision on whether or not a home is affordable and sustainable for you.

Initial Assessment

Once we have the initial financial assessment from TMP and your completed application form, we should be able to establish if we are able to offer you a home.  If we need more information, we will be in touch with you.

 

Shortlisting

The shared ownership scheme is becoming increasingly popular. We are often oversubscribed with applications for developments, so we set clear parameters so that the process is fair for all. Shared ownership properties are sold on a first come first served basis. On developments where there is a large volume of applicants, there will be a cut-off date for applications for the development. Applications will then be processed and reviewed in order of the date that we received a completed application and a complete financial assessment for each applicant.

 

Offer Letter

If you are offered a home, we will send you an offer letter confirming the details of the property and the next steps.  To secure the property, you will need to pay a £250 reservation fee. This is deducted from the purchase price when you buy the home. If the sale does not proceed from this point, we will refund your deposit, minus any costs incurred by us.

Your offer letter will include the following details:

 

  • Property details – The address, plot number;
  • Details of the sale – Open market value, share to be purchased, rent per calendar month, monthly service charge & monthly building insurance costs; and
  • Purchaser details – The name of all purchasers, current address & contact details.

Providing your Documents

Once you have agreed the purchase of one of our homes and paid your reservation deposit, we require a more in-depth assessment. This is so we can assess that:

 

  • You will be able to afford home ownership without over-committing yourself financially;
  • You are unable to afford to buy on the open market;
  • You have sufficient savings to cover the costs associated with buying a home, such as solicitor’s fees, mortgage arrangement fees, etc. You will not be able to add these to your mortgage; and
  • You have a good credit history.

We will require you to provide TMP with the following evidence to support your application. You will need to provide the following documents:

 

  • Copy of your credit report – more information on this can be found in our Financing the Purchase of your Home leaflet;
  • Evidence of any regular overtime or bonuses not shown on your payslips from your employer;
  • Evidence of any other income, such as: income from benefits, maintenance from a former partner, income from savings and investments;
  • If you have any loan agreements or credit and store card debts, copies of latest account statements;
  • Evidence of any savings – latest bank or building society statements for all accounts and/or signed letter from family member/friend stating how much they are prepared to give to you towards the purchase; and
  • Mortgage Agreement in Principle (AIP) and the accompanying key facts document. Ideally, your mortgage term will be no longer than 25 years. However, if the property is unaffordable over this term, we will consider accepting a longer mortgage term. This will be considered on a case by case basis.

If you need help with copying or photographing any documentation throughout the buying process, please contact a member of the Sales Team.

Full Financial Assessment

When we have received all of the evidence required to support your application we will carry out an assessment of your financial information to make sure that you can afford to buy and sustain a share of the property. It is at this point that we also work out the share that you will be required to purchase. This part varies from buyer to buyer as it is based on their individual circumstances.

To assess your information we use the affordability calculator provided by the Homes England who are our funders and regulators. We also review the budgeting information that is carried out as part of your financial assessment.

We carry out vigorous assessments to ensure we are allocating homes to people that can afford the initial purchase and sustain home ownership in the longer term. As a Charity and a Housing Association, many of our schemes are funded using grant money from the Government, therefore it is our duty to allocate homes wisely.

If you require a mortgage, TMP are also able find a suitable mortgage deal for you and can obtain an AIP, however, you are also able to use your own financial advisor to do this. An AIP is a document from a mortgage lender confirming what amount they are prepared to lend to you and under what terms for a shared ownership mortgage.

We would also recommend at this stage that you research what solicitor you would like to use and obtain an estimate fee for their work on your purchase.

 

Reservation

Once your assessment has been completed and reviewed, if the outcome of the assessment is successful we will provide you with a reservation form, home contents sheet & service charge breakdown. As well as the information provided on our offer letter, the reservation form will include the following information:

 

  • Property details – number of bedrooms, number of parking spaces, building standard and warranty information;
  • Specific costs breakdown; and
  • Conditions of our offer – amount of deposit, mortgage term, completion deadline.

The home content sheet contains information on the specification of the internal fixtures and fittings in your home i.e. kitchen units, appliances etc.

The service charge breakdown gives a detailed breakdown of the different elements involved in your service charges.

We ask you to complete the reservation form by adding your solicitor’s details before you return this to us. Please let us now if you spot any errors, for example, if your full name is not listed correctly.

Mortgage Application

If you are buying your home with a mortgage, you need to submit your full mortgage application to the lender at this stage.

 

Instructing Solicitors

Once you have returned your reservation form, we will issue the Memorandum of Sale (MOS) to both our solicitor and your chosen solicitor. Once your solicitor has confirmed their instruction they will proceed with the sale to ensure the sale completes within the set deadline. Your solicitor will need to confirm that they are instructed to our solicitor within two weeks of the MOS being issued by us.

 

Viewings

If you are purchasing a resale property, once we have your completed assessment, you may be able to view the home you have applied for.

If you are purchasing a home on a new development, we will wait until we receive 4 weeks’ notice for build completion of your home. Once this is agreed with the Sales Team, we will be in touch to with you to arrange a viewing.

Completion Day!

Prior to completion we will be in touch with you to arrange a time to meet you at the property and hand over the keys! On handover day we will give you a ‘home-demo’, explaining the key features of the house, answer any questions you may have and take meter readings to close our account with the utility providers. It is your responsibility to contact the utility providers you wish to use to open your accounts with, we recommend you do this on the day you move in to avoid any build-up of debt to the providers. It is also your responsibility to notify the council that you have purchased the property so that you can start paying council tax.

We are continually monitoring and reviewing the services we provide. If you have any comments regarding this leaflet or still have unanswered questions, please e-mail us at: home.ownership@coastlinehousing.co.uk

Get in touch

T: 01209 200230

E: home.ownership@coastlinehousing.co.uk
W: https://coastlinehomeownership.co.uk/

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