HOUSEBUILDERS

STORM SHARED OWNERSHIP SIGNIFICANTLY ENHANCES THE VALUE OF SECTION 106 PROPERTIES WHILE STREAMLINING AFFORDABLE HOUSING DEVELOPMENT AND LEAVING THE ON-SITE SALES PROCESS TO THE DEVELOPER. THE EXCITING NEW SHARED OWNERSHIP MODEL DELIVERS UP TO 90% OF OPEN MARKET VALUE (OMV) AT THE POINT OF SALE ON SECTION 106 AND OPEN MARKET PROPERTIES.

Developers build and sell new homes with shares between 25% and 75% (OMV at time of sale) and sell the landlord’s status in the shared ownership leases to Storm at a predetermined price via a simple framework designed to operate across numerous developments for a period between 3 and 5 years. The model has the capability to reach wider buyer markets, allowing developers to maintain OMVs and bring more properties to the market all the while experiencing increased sales rates and speed of delivery and cash receipts.

Storm Shared Ownership can deliver up to 90% of OMV if the maximum 75% initial share is bought by a customer. The minimum 25% initial customer share will deliver 70% of OMV. Storm shared ownerships’s ability to increase value from S106 properties helping affordable home ownership delivery as well as site viability. Any modifications to S106 that increase the level of shared ownership using the Storm shared ownership model will open unviable developments and assist wider housing delivery and supply.

PROCESS

Storm Shared Ownership uses a straightforward framework agreement that runs for 3 to 5 years. This allows developers to construct and market properties on their own terms. The sale to Storm of the property and landlord’s interest and the sale of the customer share is concurrent with Storm paying 60% of the OMV of the landlords share of the property (by reference to the purchase price to the customer).

The Storm Shared Ownership agreement between Storm and the developer is structured to be reusable and effective across numerous developments. The framework includes model sale and purchase contracts and establishes the procedure for the creation of eligible properties to guarantee contractual certainty of purchase. This is of vital importance with regard S106 properties. The agreement sets out the price and payments conditions for the sale to Storm by reference to the sale price to customers.

Once applied, the main elements of the Storm Shared Ownership process are:

Identify development sites and obtain contractual certainty upfront

Create a 125-year lease for Storm Shared Ownership properties

Fixing % pricing of OMV for properties based on future sales price paid

STORM SHARED OWNERSHIP SUMMARY

Benefits for customers

  • Get on the housing ladder
  • Cheaper alternative to private rent
  • Power to expand ownership in the future
  • Freedom to choose initial ownership (25% – 75% of initial sale)

Benefits for developers

  • Increased income from shared ownership properties
  • Wider customer base enhancing sales and value rates
  • Sole counter-party with reusable contracts
  • Fixed pricing and certainty via framework agreements

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