Step by step guide to buying through the shared ownership scheme

Step one — Applying to buy

You need to complete an application form. You will be taken to a new page for this form.

You will also need to provide copies of the following information where it is applicable to your situation:

• Evidence of your salary in the form of your last three months wage slips.
• Evidence of any Child Benefit, Child Tax Credit or any other income.
• Proof of savings (bank statement/savings account statement). This is to show that you have sufficient funds towards your deposit and moving costs.
• Proof of current residency (Council Tax or other utility bill).
• A copy of your passport or photo driving licence. Where required please supply your biometric residence permit.
• A copy of your mortgage in principal.
• Where you have a property to sell, evidence that your property is on the market, such as your estate agents contract.
• A copy of your most recent mortgage statement, showing the amount outstanding.
• If you are selling your current property due to a marital break down, please provide details of the proceeds you expect to receive (you will be asked to provide evidence of this).
• If you have a County Court Judgement which has been satisfied please provide evidence of this. Where it has not been satisfied, please provide evidence of the amount and any arrangements you have made to pay this.

Step two — LHP responds

If we think you are a suitable applicant we will accept your application.

If we have a property available you will be invited to view it and be informed of the purchase price.

If there are no properties available, you will be added to our waiting list for new developments or resale properties. When a new property becomes available, we will contact all applicants on our waiting list and advise them of the details. A closing date will also be set for applicants to express their interest in the property. After the closing date, we will assess all applications received and the successful applicants will be those deemed to be in the most need. If applicants are found to have the same level of housing need, we will take the date the application was received as the deciding factor.

Step three — Receiving an offer

If you are offered a property and you choose to buy it, you will need to agree the size of the share you want to buy.

Step four — Arranging a mortgage

If you already save money with a bank or building society, then you may wish to meet with them first to see what they can offer. You may also wish to meet with an independent mortgage adviser. Always ask in advance if they charge a fee. If the bank or building society would like to see a copy of the lease, please let us know and we will arrange this. Once you have a mortgage in principle you will need to provide us with a copy.

Step five – Securing your property and paying your holding fee

You will be asked to pay a holding fee for the property of £250; this will secure the property for a period of eight weeks. The holding fee is non-refundable and will be used to reduce the amount you pay for the property. You should make sure you can secure a mortgage before paying your holding fee. The holding fee does not apply to resales.

Step six — Buying the property

During the eight week period you will need to make sure that you can secure a mortgage. When the bank or building society offers you a mortgage, you will need to let us have the name and address of your solicitor or licensed conveyancer. We will then send them a copy of the draft lease.

Your solicitor or licensed conveyancer will advise you about what the lease says, approve it on your behalf, make a local authority search and check ownership of the property. You will also be required to have a property survey carried out which may be organised by the bank or building society who are arranging your mortgage. We will let you, your mortgage lender and your solicitor or licenced conveyancer know the amount of rent and any service charges you will have to pay on the remaining unsold share of the property.

Step seven - Exchange and completion of your property

Once your solicitor has completed their searches, checked ownership and approved your lease they will arrange for you to sign the contract and lease and will ask for a date you wish to complete your purchase.

You will first be required to exchange, this means the contracts are exchanged between you - the buyer and us - the seller. This process will be arranged and carried out by your solicitor or legal conveyancer. Once exchange has taken place the sale becomes legally binding and neither party can withdraw.

On the day of completion, monies will be transferred from your solicitor or legal conveyancer to our solicitors. Once monies have been received, the property will become yours. We will contact you directly to arrange for you to collect your keys from our offices.

Please be aware that we will continue to check and verify an applicant’s eligibility and affordability status throughout the application process and you should advise us of any changes to your circumstances.