A step-by-step home-buying guide - Catalyst Homes
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A step-by-step home- buying guide
Contents
4. 16. 22.
Shared Help Moving home
Ownership to Buy checklist
2 3
What exactly How much
is Shared is it going
Ownership? to cost?
Pay rent on the •P
roperty valuation
remaining share carried out
75% by your lender
50% The amount you have to pay
Buy 25 to 75% varies and in some cases • Legal
of a property additional fees may be required
fees
25% by your mortgage provider.
We can supply a list of reputable
solicitors who are familiar with
Shared Ownership. Fees can
vary so always ask for an
Shared Ownership offers first-time buyers an opportunity to buy • Stamp estimate first.
a share of their new home and is a successful Government-backed Duty
initiative that enables you to pay rent on the remaining share that
you don’t own.
Stamp Duty will vary depending
You need to purchase the maximum 100% of your home. This process
on the size of the share you buy.
share that you can afford, which is called staircasing and as you buy
You can calculate Stamp Duty at: • Reservation
is normally a share of between more shares the rent will reduce.
25%–75% of the full market value. Most properties can staircase to
www.hmrc.gov.uk/sdlt/calculate/ fee
shared-ownership.htm
The combined monthly cost of 100% meaning you will own the
your rent and your mortgage will property outright however there
usually be less than buying the may be restrictions. A fee of £500 is required when you
property outright. reserve a property if you buy using
As well as the initial payment to Shared Ownership or Help to Buy.
After one year of ownership, you purchase a share of the property, If you buy market sale the reservation
are able to buy additional shares in there will be ongoing monthly costs. fee is £1,000. This fee is then credited
increments of 10%, until you own back to you upon completion.
4 5
Are you Catalyst New Homes
will give priority to: Catalyst New Homes
eligible? • Those who live or work in the local
makes it easy to get
authority area or borough where the
property is for sale. the ball rolling
• Those that have a local connection
such as close family ties within
the local authority or the borough.
• Current tenants of the local authority,
borough, or a housing association
(this is only applicable if you are the Mortgage
tenancy holder and your home will deposit
become available if you leave).
• Ministry of Defence personnel –
Certain categories of staff employed Your mortgage lender will require a deposit which can range
by the Ministry of Defence (MoD) from between 5% to 25% of the loan value, however, some lender
as specified by the Homes and occasionally have mortgages available on shared ownership with no
Communities Agency (HCA). deposit. The amount will vary depending on the mortgage deal you
• Current home owners who have secured and also changes in line with wider economic factors.
find themselves in the
following circumstances:
• Overcrowding of an
existing property due
to a new family addition.
• Forced to sell an existing
property due to a
breakdown in relationship Monthly In addition,
e.g. a divorce/separation.
payments you’ll need to pay:
• Required to care for
a sick relative.
• ow we allocate homes – When
H • Mortgage repayments. • Council tax.
there is more than one interested Your financial advisor or
party who wants to purchase one of bank/building society will • Utility bills
our homes, we allocate the property calculate your repayments. (water rates, gas, electricity).
according to need. The local authority
will often give guidelines that will help • Your rent to cover the share • Contents insurance (building
us decide this. We treat everyone fairly of the property that you insurance is covered in your
and in accordance with our Equal have not yet purchased. service charge).
Opportunities policy.
• Service charges.
Eligibility differs between developments. Please speak
to a member of our Sales Team to find out what the
criteria is for a specific development. 7
Easy steps to buying
a property with
Catalyst New Homes
1
Register with
2
Find a property
Catalyst New Homes to suit you
Different types of To find out more about the Once you’ve registered with Catalyst
options available to you, please visit New Homes, you can search for your
www.catalyst.homes and complete an new home by visiting www.catalyst.
property buying online registration form. If you’d prefer to
speak to someone, call our friendly Sales
team on 0333 444 3002 who would be
homes and arrange a viewing of your
desired property (subject to availability).
If the property is not built yet, you
more than happy to assist. If you are can reserve off-plan and be updated
throughout the building process.
What is resale What is an off-plan looking to use the Help to Buy scheme you
will also need to complete a reservation
property? property? form with the Help to Buy agent.
A resale property is a Shared Our new-build developments are
Ownership property that has usually all sold before they’ve been
Visit our marketing suite
3
become available to buy from its fully built. This is called buying
current owner. You can either buy off-plan. to find out more
the share that is for sale, or you
Take the opportunity during your
can buy more if you can afford to. When you go to view a property
appointment to ask our expert Sales
you’ll usually see a show home
Executives any questions that you have.
and floorplans so that you can Be sure to take a look around the show
understand the layouts, finishing home to get an idea of the specification
standards and fittings of properties at the development. Additionally, take the
you are interested in. You won’t see chance to check out the local area to get
your home until it’s fully built and to know your new surroundings.
you’ve exchanged contracts, but you
will see your actual property before
you have legally completed.
9
Exchange
4 8
Property reservation form of contracts
When the Mortgage Advisor has confirmed your affordability, you will be invited to At this stage you will need to pay your deposit to your
complete a reservation form for your chosen plot and pay a £500 reservation fee solicitor and get buildings insurance for your new
or £1000 if Market Sale, this will be done in person by a Sales Executive at your home. Before you do this make sure that you have your
chosen development. This reservation form will also be used as the Memorandum mortgage offer in writing, that you understand and agree
of Sale (MOS) for the property. The reservation form gives full details of the to the contracts and their is an agreed completion date.
property including your share, monthly rent, service charge and details of solicitors
involved in the sale. You must check that all these details are correct before
signing as this is used to instruct all parties of the pending sale. This form will also
outline a timeline for the purchase of your home. If you don’t submit the required
10
documents and meet this schedule, the offer of sale may be withdrawn and the
property will be put back on the market. During this stage you will need to provide
the financial advisor with your documents such as passports and payslips.
6 9
Nearly there
Time to instruct Home demonstration
5
The next step is to sign and
You can now arrange an
and viewing exchange the contracts and
appointment with your chosen for you to pay your deposit.
solicitor or conveyancer who will
Time to get The customer care team will show you It normally takes around
around the property and how everything
handle all of the legal aspects of a mortgage works. If you are buying off-plan this
4–6 weeks to get to this stage.
buying or selling a property for is when viewing will be possible.
you. Here at Catalyst New Homes You can arrange a mortgage
we can recommend you to some with our panel of recommended
excellent solicitors. Mortgage Advisors or through
11
a third party organisation of
your choice. A surveyor will
then conduct a survey on your
prospective home to ensure that
the property is worth the sale
Home sweet home
We will be in touch
Our Sales Progression Team will be in
price. This is a chargeable service
and you should discuss with your You are now a
home owner!
mortgage provider the different
touch to provide you with a reservation form
types of surveys on offer. You will
summarising the purchase and setting a
need to set aside funds to cover
deadline for contracts to be exchanged.
7
this valuation. Once a mortgage
offer has been received, solicitors
acting on behalf of both parties
will check the mortgage offer.
10 11Other eligibility criteria Example of costs
You must also meet the following conditions:
Shared Ownership with Shared Ownership with
35% share 45% share
Income PROPERTY PRICE PROPERTY PRICE
cap
£200,000 £200,000
When purchasing a property
in London, a household Property SHARE % PURCHASED SHARE % PURCHASED
income cap of £90,000 deeds
applies. The income cap for 35% (£70,000) 45% (£90,000)
outside of London is £80,000.
Your name, or the name of any
joint applicant, must not be on REMAINING % UNSOLD REMAINING % UNSOLD
the deeds of another property,
Rent whether in the United Kingdom 65% (£130,000) 55% (£110,000)
or abroad.
arrears
MORTGAGE AMOUNT MORTGAGE AMOUNT
In most circumstances, £70,000 £90,000
you must not have been in
any rent arrears during the
Financial
past 12 months. checks RENT ON THE RENT ON THE
UNSOLD EQUITY UNSOLD EQUITY
Do not own
The percentage of the home you 2.75% (£297.92 per month) 2.75% (£252.08 per month)
can own is linked to your income
a home and is subject to a financial
These examples act as a guide. For actual mortgage repayments,
check from a Mortgage Advisor.
we recommend contacting a Mortgage Advisor. The deposit required for
the mortgage will vary between lenders. Leasehold properties will also
If you are a current home be subject to a monthly service charge. The example assumes that the
owner you would need to rent on the unsold share is charged at 2.75%. Rental charges vary for
sell your property. We have each development. Rent and service charge will be subject to an annual
a scheme called Assisted review. Additional charges for service charge will vary from developments
Move to help you with this. depending on the service provided.
12 13Other things you should know… All Shared Ownership properties are leasehold. When you buy the property outright this can be converted to freehold for some properties. How we allocate homes When there is more than one interested party who wants to purchase one of our homes, we allocate the property according to need. The local authority will often give guidelines that will help us decide this. We treat everyone fairly and in accordance with our Equal Opportunities policy. Buying a property outside London Any property purchases outside of London require registration with the relevant Help to Buy Agent. Further information can be found here: www.helptobuy.gov.uk
Get moving with Help to Buy: Equity Loan 16 17
What is Example
Help to Buy? of costs
With a Help to Buy: Equity
Loan, the Government lends
PROPERTY PRICE
you up to 20% or 40% of
the cost of your newly built £200,000
home, so you’ll only need
a 5% cash deposit and
a 75% or 55% mortgage 5% DEPOSIT
to make up the rest.
£10,000
You won’t be charged
loan fees on the 20% loan GOVERNMENT’S 20% LOAN
for the first five years of
owning your home. £40,000
To reflect the current 75% MORTGAGE FROM
property prices in London,
COMMERCIAL LENDER
from February 2016 the
Government increased £150,000
the upper limit for the
equity loan it gives new
home-buyers within Greater If the home in the example above
sold for £210,000, you’d get
London from 20% to 40%. £168,000 (80%, from your mortgage
and the cash deposit) and you’d pay
If you are looking to buy back £42,000 on the loan (20%).
a new home in a London You’d need to pay off your mortgage
borough, find out more with your share of the money.
Leasehold properties will also be
about London Help to Buy. subject to a monthly service charge.
19Eligibility and
how to apply
Who is eligible?
Equity loans are available to first- introduces changes to ensure the
time buyers as well as homeowners scheme is better targeted towards
looking to move. The home you those who most need support to
want to buy must be newly built achieve home ownership.
with a price tag of up to £600,000.
The key changes are:
You won’t be able to sublet this
home or enter a part exchange deal • The scheme will only be
on your old home. You must not available for first-time
own any other property at the time buyers, defined as those who
you buy your new home with a haven’t previously owned or
Help to Buy: Equity Loan. purchased a property.
Budget 2018 announced that the • The scheme will introduce
Help to Buy scheme would be regional property price caps
coming to an end in March 2023. based on local markets, which
A new version of the Help to Buy will set the maximum price of
scheme will operate from 1 April a new build home that can be
2021 until 31 March 2023 which bought with Help to Buy in
any region.
How to apply
The Help to Buy: Equity Loan scheme is run by Government-appointed
Help to Buy agents. They can guide you through your purchase,
from providing general information about the scheme to dealing with
your application. Or look out for the Help to Buy logo on new build
developments and ask about the scheme there.
If you would like some help with this please contact our friendly
Sales Executives who will be happy to help.
20Moving home
checklist
Everything you
need to know
about the lead-up
to receiving
the keys to your
new home.
22 234
Packing.
Arrange removal vans.
weeks
to go
Notify your dentist and doctor
for your medical records to be
transferred to your new practices.
2
Update
your
weeks
to go
Arrange for the post office
to redirect your mail.
Check your home contents
Start collecting suitable packing
boxes if they are not provided by
the removal company and pack
address.
insurance policy for cover at your what is required. Change of address with your:
new address during your move.
• Bank/building society, insurance
companies, Premium Bonds
and other savings certificates,
Create a system of identifying credit card companies and
Arrange for water, electric, gas, packing boxes which will need to store accounts.
telephone and other accounts be opened first and label all boxes • Driver and Vehicle
to be finalised. clearly with their contents and Licensing Centre and
which room they belong in. mortgage organisations.
• Inland Revenue, Local Council
Office, Social Security Office.
Book an electrician and plumber
• Clubs and other memberships,
if required to disconnect and refit Inform your employer of your move, newsagents/magazine and
appliances from your old address confirming whether you need time other subscriptions.
to your new address. off work.
24 251
For your
peace
week
to go
1
The
day
to go
final Defrost fridge and freezer;
alternatively switch to maximum
if you are taking them with you.
of mind. Collect up all keys for your
existing property. checks.
Complete packing except for
clothing and overnight toiletries
Make sure loft, garden shed and etc., and food and drink needed
Confirm moving arrangements other storage places have been for the moving day.
with van hire or removal firm. cleared out to your new address.
Turn off central heating and
Clearly label any items you Advise your solicitor of the time all electrical appliances.
are leaving behind and remove of your move so they can ensure
any fixed objects not included all completion money is with the
in your sale. builder prior to your arrival on site.
You’re ready to move…
26 27Moving
Upon arrival of your new home, it is important to inspect carefully
throughout, paying particular attention to:
day Sanitaryware. All services (gas, water and
electricity) are connected and
are in working order. You should
agree meter readings with the
Sales Executive.
Glass.
Congratulations!
The big day has arrived and
your new home is ready Familiarise yourself with the
Kitchen fittings and appliances. operation of smoke detectors
for you. Over the next few and carbon monoxide detectors.
days, make sure you carry Check they work by pressing
out the important checks the test button.
below and discuss any
concerns with us. Wall tiling.
Check that you have been given
operating instructions for all
Before closing your old Carpets, floor tiling and systems, appliances and fittings
front door, you will need to: laminated flooring. and you know how to work them.
Make a note of gas, water Leave keys as arranged Check any fitted wardrobes. In the case of apartments and
and electric meter readings. with new owners. maisonettes, check that the
communal areas have been
completed properly.
You have been given the correct
Check all storage spaces Collect your keys from keys for all locks, and that
and lock all windows and doors. the Sales Office. windows and doors open, Finally, enjoy your new
close and lock properly. home and get settled!
28 29Homes people love
0333 444 3500 | www.catalyst.homes
Catalyst New Homes terms and conditions apply. Images are indicative only. Prices correct at time of going to print. Shared
Ownership – Terms and conditions apply. This scheme is subject to qualifying criteria and status. Minimum and maximum share
values will apply and rent is payable on the unsold share. Help to Buy: Equity Loan/London Help to Buy: Equity Loan – Terms and
conditions apply. Please contact us for further details. More information can be found on www.helptobuy.gov.uk. These schemes
cannot be used in conjunction with each other and are available on selected plots only. Please speak to a member of our Sales
Team for more details. August 2020.You can also read
