Channel Heights, Rhoose Point North: Low Cost Home Ownership - Newydd Housing Association
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S A LE
FOR
Channel Heights,
Rhoose Point North:
Low Cost Home Ownership
Image for illustration purposes only
Newydd Housing Association in partnership
with Vale of Glamorgan Council
What is the Low Cost Home Ownership scheme? The Low Cost Home Ownership scheme is operated by Newydd Housing Association in partnership with the Vale of Glamorgan Council. This scheme aims to help first time buyers who can’t afford to meet the full cost of buying a property, but could manage to buy their first home on a shared equity basis. Buyers will be expected to gain a mortgage for 70% of the property value; they will then own the property outright. Newydd will hold a legal charge on the remaining 30% equity. No rent is payable on the 30% equity, this is because the scheme is operated on a shared equity basis, rather than shared ownership. Buying a property through the scheme will still incur the normal costs associated with buying a property on the open market, including valuation, mortgage and survey fees, solicitor and land registry costs, search fees and stamp duty.
What does shared equity mean? This scheme operates on a ‘shared equity’ basis with a 70/30 percentage split. This means that the first time buyer would purchase 70% of the property value with the remaining 30% of the equity being retained by Newydd as a legal charge on the property. Newydd’s 30% equity is held on an interest free basis and there is no rent payable on this equity charge. Successful applicants will need to demonstrate by way of a Mortgage In Principle offer that they are able to finance 70% of the property value through a mortgage but cannot afford to buy without this assistance. A deposit of between 5% and 15% would still normally be required by most mortgage companies on this sum. When will the 30% share be paid back? Through the scheme, the 30% equity will need to be paid back to Newydd at current market value when the property is sold. Please note this can result in you paying more than the original 30% if the market value of the property increases, or less than the original 30% if the property value decreases. Subject to confirmation there will be an ability to ‘staircase’ within the scheme where the owner can buy additional parts of Newydd’s retained equity. This will mean the owner has the ability in time to own 100% of the equity share
How much will a property cost?
Ordinarily these two bedroom houses would be marketed
for sale at a cost of £145,000*. As these are part of
Newydd’s Low Cost Home Ownership scheme, they are
available to purchase at 70% of their market value.
This results in a purchase price of just £101,500* (Please note most
mortgage lenders will require between a 5-15% deposit towards this.)
available to
70%
equity share
cost of purchase for just of the market
£145,000 £101,500 = value under
Newydd’s low
cost home
ownership
scheme
* Based on market value as at July 2015, subject to re-valuation of the
property prior to the point of purchase.
Selling your property
When you wish to sell your property you must firstly contact
Newydd who retains the right to purchase the property
back, if you choose to sell. If Newydd choose not to
exercise this option then working in partnership with the
Vale of Glamorgan Council, Newydd will endeavour to find
a buyer from the Aspire2Own waiting list. Timescales for
this process will be set out in your legal documentation.
If there are no suitable purchasers identified for the property within
the timescales then you will be free to sell your property unrestricted
on the open market. As set out in your legal documentation there
are procedures to follow with regards to providing a formal
valuation report for Newydd’s approval prior to a sale taking place.
The retained equity share will need to be re-paid to Newydd at the
point of sale being 30% of the prevailing market valuation.
Example:
Original purchase price: Resale price:
£145,000 £155,000
Newydd Housing Association Repayment to Newydd
contribution at 30%: Housing Association at 30%:
£43,500 £46,500
Purchaser contribution at 70%: Repayment to seller at 70%:
£101,500 £108,500Homes for sale in Rhoose Point North Newydd Housing Association, working in partnership with the Vale of Glamorgan Council, are pleased to offer two new homes built by Taylor Wimpey for sale at Channel Heights, Rhoose Point North. These two bedroom houses are being offered under Newydd’s Low Cost Home Ownership scheme. Property location and details Channel Heights is perfectly positioned on the edge of the village of Rhoose, one of the fastest growing villages in South Wales. It is close to Cardiff International Airport and walking distance to unspoilt coastline of the Bristol Channel, offering beautiful walks, rock climbing, surfing and wildlife. For families, this is a perfect place to live. Rhoose has a popular village Primary School, while secondary schools are just 5 miles by road, one stop on the train. There are local shops in Rhoose, including a Post Office, a Tesco Express, a butcher and a pharmacy. For major shopping, Cardiff has it all just 13 miles away. If you are looking to buy a new affordable property in beautiful surroundings within the Vale of Glamorgan, then look no further.
The development The two 2 bedroom homes available at present within the scheme are plots 7 and 8 and are illustrated on the layout plan above.
Floor plans Property features • Two bedroom semi-detached house • Open plan kitchen with fitted oven/hob appliances • Downstairs cloakroom and toilet facilities • Rear french doors • Private rear garden • One designated parking space and shared access to a visitor’s parking space • 10 year National House Builders Council ‘Buildmark’ warranty and insurance policy
Who will qualify for this
low cost home ownership scheme?
To be eligible for the scheme applicants must:
• be over 18 years of age
• be a UK or EU / EEA passport holder or have ‘Indefinite Leave to
Remain’ stamped in their passport
• be a first time buyer*1
• able to meet the long term financial commitment of home ownership
• not exceed the maximum household income; £40,000 for a
single applicant or £45,000 for a joint applicant
• Priority will be given to those who have a local connection as
defined below:
1. Resident in the area for the last 12 months OR 3 out of the
last 5 years
2. Parents or close family members*2 living in the area
3. Permanently employed (or moving to be permanently
employed) in the local area.
4. Retiring from tied accommodation in the area.
*1 A first time buyer for this scheme is viewed as a person/s that
have never owned a property (mortgaged or un-mortgaged) before,
never jointly or part owned a property, or never had your name on a
mortgage or title deeds. Consideration however will be given, on a
case by case basis, to applicants who are first time buyers in their
own right, where a property may previously have been owned
jointly, but is now sold, for example as a result of a divorce.
*2 Close family members include husband or wife, grandparents,
children, grandchildren, brothers, sisters, uncles, aunts, nephews and
nieces. Step and half relatives are treated as full blood relatives.Which area must I have a connection to? Priority area 1 Priority will be given to those applicants with a local connection to the Rhoose Ward. Priority area 2 When allocating properties at the scheme, if there are insufficient Aspire2Own applicants with a local connection to the Rhoose Ward, then priority will next be given to applicants from the electoral ward of St Athan. Priority area 3 If priority two is exhausted, the priority area will extend to the rest of the rural Vale Wards (St Brides Major, Llandow/ Ewenny, Cowbridge, Peterston-Super-Ely, Wenvoe, Dinas Powys, Llandough and Sully in no particular order). Should applicants in these areas also be exhausted, then lettings can be extended to Aspire2Own applicants residing in the Vale of Glamorgan. The scheme is not available to those who: • are not UK or EU / EEA passport holder or whose passport is not stamped with ‘Indefinite Leave to Remain’ • have a financial interest in a property • have benefited from a low cost home ownership initiative in the past • can afford 100% of the price of a suitable property • are tenants of the Vale of Glamorgan Council or a Housing Association who are in rent arrears or in breach of their tenancy agreement.
FAQ’s
What other costs might I Can I sublet my shared ownership
encounter when purchasing a property?
property? The nature of the scheme is to assist
Buying a property under the scheme first time buyers to enter the property
will involve having to pay all of the market and therefore subletting is not
normal costs associated with permitted.
purchasing a property on the open
market, including: Other considerations
• valuation / survey fees • If you have children, have you
• solicitor fees considered the availability within
• land registry costs the local schools? There is no
• search fees guarantee that when you move into
• mortgage deposit and fees an area, there will be availability in
(dependent on mortgage lender) local schools, please check with the
• stamp duty school(s) that you are interested in.
• Home ownership is a long term
It is advisable that you have savings to financial commitment. You must
cover these costs. ensure that you budget for regular
bills and outgoings, as well as the
Is there a service charge payable upkeep of your property. For ideas
for this property? and tips on budgeting, go to
Due to the extensive public open http://moneyadviceservice.org.uk/
space, each household within the
development is required to pay a yearly
sum for the ongoing maintenance of
the site. The first year’s payment is
estimated to be £122.33 but this is
likely to increase in line with inflation
each year.Where is Channel Heights?
Crib y Sianel, Rhoose CF62 3NB
From the M4:
Leave the M4 at junction 33 and at the roundabout, take the A4232
exit to Penarth. Continue to the Culverhouse Cross roundabout and
take the 3rd left onto the A4050, signed Barry.
At the next 5 roundabouts, take the 2nd exit onto the A4050
towards Barry. At Port Road East roundabout, take the 2nd exit
onto the A4226, signed Cardiff Airport. At the Port Road West
roundabout, take the 2nd exit onto Port Road West – A4226. At the
next roundabout, take the 1st exit onto Port Road. At the following
roundabout take the 2nd exit onto Port Road. At the next
roundabout take the 1st exit onto Porthkerry Road. At next
roundabout, take 1st exit onto Pentir Y De. At the following
roundabout, take the 2nd exit onto Trem Echni. The development
will be located on the right hand side.
How do I apply?
For further assistance
You will need to complete the
please contact:
Aspire2Own registration form
Housing Strategy Team,
which can be found on the Vale
Civic Offices, Holton Road,
of Glamorgan Council website.
Barry CF63 4RU
Call 01446 709476
Email housingstrategy@valeofglamorgan.gov.uk
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