LE FOR SA Channel Heights, Point North: Low Cost Home Ownership

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Newydd Housing Association in partnership with Vale of 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 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.)

70% available to equity share cost of purchase for just of the market = value under £145,000 £101,500 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 £108,500 Homes 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 . It is close to International Airport and walking distance to unspoilt coastline of the 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 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 . Priority area 3 If priority two is exhausted, the priority area will extend to the rest of the rural Vale Wards (, / , , Peterston-Super-Ely, , , 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 . Continue to the 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 . 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 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

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