Low cost home ownership

There are low cost home ownership schemes available within the Caerphilly county borough.

To apply for low cost home ownership or intermediate renting, you will need to complete an online application form available on the HomeSearch Caerphilly website.

Information about the different affordable housing schemes available can be found below.

Shared Equity

The Shared Equity option is based on the principle of equity share and helps first time buyers into home ownership. The subsidy is not a loan that needs to be repaid and there is no rent payable.

It simply means the Housing Association owns an equity share (typically 30 - 50%) in the home. When the purchaser decides to sell the home on, the Housing Association gets back its equity share and recycles it, to ensure it is available to the next household eligible on the register to buy the home.

Shared Ownership

The scheme is there to assist you if you are a first time buyer, looking to re-enter the property market or looking to downsize to something more manageable.

With shared ownership, you simply buy a share of your home and rent the rest. So your mortgage is smaller, more affordable and easier to get approval for.

As you are only buying a share of the property and not the total value, your monthly payments may be less than if you were to buy the property outright. But you can still enjoy all the benefits of a brand new home. 

How it works 

  • You will normally borrow from around 50% to 70% of the value of the property from a building society or bank in the form of a mortgage. 

  • You will have to pay the full cost of buying your share including an administration fee, valuation fee and legal fees.

  • There will be a rent payable on the share of the property you do not own. You will also need to pay the normal costs associated with owning your own home.

After a set period of time (usually from 12 months) you can buy further equity shares in your home. This is known as staircasing. The value of any extra share you wish to purchase, is determined by an open market valuation taken at the time.

It is possible to acquire 100 per cent of the equity in your home.

Rent to Own - Wales

Rent to Own - Wales supports the purchase of a home for those who do not have sufficient funds for a mortgage deposit. The scheme enables tenants of rental properties within the scheme, to build up a lump sum toward a deposit whilst they rent their home. The lump sum toward the deposit can then be used to help secure a mortgage to enable the purchase of the home.

Visit https://beta.gov.wales/rent-own-wales for more information

Intermediate Rent

Intermediate rent offers the opportunity to rent a good quality home at less than you would expect to pay in the open market for a similar home in a similar area. If you are in employment and your net household income is less than £30,000 a year then this could be a great option for you.

It has the added advantage that you don’t have to pay any of the usual sign up or administration fees that other agents impose. You should be able to pay the rent monthly in advance by direct debit and will need a tenancy deposit of the monthly rental value plus £100.

To apply

To apply for low cost home ownership or intermediate renting, you will need to complete an online application form available on the HomeSearch Caerphilly website.

For more information about individual developments contact the housing association directly using the details below.

United Welsh Group 

United Welsh’s low cost home ownership scheme is operated by harmoni homes.

Website: http://harmonihomes.com/
Email: info@harmonihomes.com
Tel: 02920 858145

Pobl Group

Pobl’s low cost home ownership scheme is operated by Pobl Living.

Website: https://poblliving.co.uk/ 

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