What is Home Reach?
Home Reach is a scheme for shared ownership of new build homes. With Home Reach, you buy a share of your chosen home and pay a low monthly rent on the part you don't buy in a part-buy part-rent scheme. You get to choose whether you buy a bigger share of a lower priced home or a smaller share of a more expensive one.
With the Bovis Homes partnership, you can initially purchase up to 75% of your chosen home and heylo will become your landlord, granting you a lease. This means you will be able to live in your home as though you've bought it outright. In the future, you can buy more of your new build home and stop paying rent on the other part.
Who are Heylo?
Launched in September 2014, heylo has created one of the largest home ownership programmes in the UK, offering a number of different routes to ensure owning your own home is accessible.
Bovis Homes are working in partnership with heylo to offer Home Reach, a part buy-part rent option on selected properties across the country.
Home Reach is simply about helping you get on, climb up and stay on the property ladder, thanks to our selection of shared ownership houses and new build homes for sale.
What makes shared ownership houses a more affordable way to buy?
Smaller deposit requirements and lower monthly payments make it easier to buy the home you've always wanted.
You decide how much of your home you would like to buy, with shares between 50% and 75% (on a small number of developments there is the opportunity to purchase a lower percentage).
You can purchase your share with either cash savings or by taking out a mortgage. If you are taking out a mortgage to finance your share, then you will typically need to allow for at least a 5% deposit. The larger your deposit, the lower your mortgage payments will be.
On the share you don’t own, you will pay annual rent of 2.75% of the unsold value. This will be paid monthly by direct debt. For example...
|50% Share Value||£75,000||£100,000||£125,000||£150,000||£175,000|
|Mortgage (3.5% interest rate)||£67,500||£90,000||£112,500||£135,000||£157,000|
|Monthly Mortage Payment||£341||£455||£569||£676||£789|
|Monthly Combined Cost||£513||£684||£855||£1020||£1190|
|Indicative Income Requirement||£20,000||£26,000||£33,000||£37,413||£43,536|
Source:heylo housing Jan 2018. Figures above are based on a 25 year repayment mortgage and a Home Reach lease with an initial rent of 2.75% on the unpurchased property value increasing by RPI + 0.5% each year. Your home may be repossessed if you do not keep up with payments on your mortgage or shared ownership lease. Additional service charges may be payable on properties with communal facilities or services. You will also need to consider the responsibilities and associated costs involved with owning a home (such as insurance and maintenance).
Why choose Home Reach?
If you’ve found your ideal new build home for sale near you, you may feel disheartened if you feel it’s out of reach. However, you’d be surprised at what you can afford with Home Reach.
Some of the benefits of Home Reach are:
- Home Reach provides an affordable way to get onto the housing ladder.
- Home Reach provides the security of home ownership in comparison to purely renting.
- Flexibility to sell and move at any time.
- The ability to increase the level of home ownership at any time.
- Freedom to decorate and improve your home.
- ou’ll still be able to benefit from any increase in property prices.
Who is eligible for Home Reach?
- Not have a household income of more than £80,000 per annum for homes outside of London.
- Have a deposit (at least 5% of the share value).
- Be a first-time buyer or have owned your own home previously, but cannot afford to buy outright now.
- Plan to live in the shared ownership property as your principle and only home.
- Pass a financial assessment, demonstrating you are financially able to purchase the minimum share value and support the monthly costs.
If the prospect of a part buy-part rent scheme to help you buy a new build home sounds exciting, the next step is checking you’re eligible.
To qualify for the scheme, you must:
Take the next step with Bovis Homes
To get the ball rolling, get in touch with our expert team who will be happy to answer any questions about any aspect of the moving process – whether you’re a current homeowner looking for a new build home or a first-time buyer.
Terms and conditions: Home Reach is a new build ownership solution brought to you by heylo housing group. The Home Reach shared ownership scheme cannot be used in conjunction with any other Bovis Homes purchase scheme, offer or promotion. Subject to affordability criteria as prescribed by Homes England. Subject to individual mortgage lender qualification and affordability criteria. More information on eligibility and affordability of using Home Reach to purchase your home can be found at www.homereach.org.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT