Shared Ownership

WHAT IS SHARED OWNERSHIP?

Storm’s Shared Ownership is about helping you get on the ladder.

With Storm’s shared ownership you buy a share of a new build home of your choice and pay a monthly rent on the remaining share. It’s completely up to you how much you decide to buy based on your personal finances. You could buy a lesser share of a more expensive house or a larger share of a lower priced house.

You can buy your share by taking out a mortgage or by using cash savings. If you are taking out a mortgage to fund your share a minimum of 5% deposit will be required. You’re mortgage repayments are likely to be lower if you place a larger deposit up front (usually 10%).

Initially, you can purchase between 25% to 75% of your chosen home. Storm will then be your landlord, granting you a lease for 125 years, allowing you to be able to live in the home as if you have acquired the total share.

You will pay rent of 2.75% on the value of the share of the house you do not purchase. Rent will be payable monthly via direct debit. You also have the option to purchase more shares whenever you wish, until you own 100% of the property and stop paying rent completely.

How much you can purchase initially varies across developments. Please get in touch with the sales representative at your preferred development for more information on the shares available, they will be happy to assist with any queries.

HOW DOES SHARED OWNERSHIP WORK?

Part buy-part rent enables you to get a foot on the housing ladder if buying the full share isn’t an option.
Initially you buy a share of your home, between 25% to 75%. Rent is then payable at 2.75% on the remaining share you did not buy, paid monthly via direct debit. You have the option to purchase or sell a share in your home at any time, allowing you to own 100% of the property meaning you will stop paying rent altogether.

When purchasing a part buy-part rent home, Stamp Duty Land Tax (SDLT) is only payable on the price of your share. There will be £0 SDLT due for First Time Buyers buying a part buy-part rent house valued up to £500,000. For more information on fees you need to pay you we advise you contact a financial advisor or solicitor.

BENEFITS FOR CUSTOMERS

Reasons to choose Storm Shared Ownership

Security

Own your own home

On the housing ladder

an affordable alternative

Ability

to decorate at your leisure

Budget

will determine the size of the share you buy

Option

to increase your level of ownership at any time

Freedom

to sell your share and move when you want

Gain

from any property price increases

Save

No stamp duty payable on a Storm Shared ownership Home valued up to £500,000, for first time buyers.

BUYING WITH STORM

Step 1 – REGISTER (Help to buy)

Initially, you need to confirm you are eligible for part buy – part rent by registering with your local help to buy agent.

You can apply for one of our specific developments or a wider area.

Click here to find out how to register with your local agent.

Storm shared ownership registration is separate to Help to buy registration and you must do both to be eligible.

Step 2 – Financial assessment

In order to determine the share you will be able to purchase, you must first complete a financial assessment.

The assessment is carried out by a qualified financial advisor. The financial advisor should take into account the rent now as well as future increases in order to gain comfort you can keep up the monthly payments.

Storm Property will be happy to arrange an appointment with a financial advisor for you. However, you don’t need to go through Storm and can select your own financial advisor.

Step 3 – Budget

Once the financial assessment has taken place, you will know the share value that is within your budget and you can choose the home you wish to buy.

Initially, shares available vary across different developments, with the maximum share you can start with purchasing being 75%.

Step 4 – Reserve

After choosing your home, you must pay a fee to secure your home. Storm will then walk you through the next steps to becoming a homeowner.

Step 5 – Mortgage

If you are purchasing the remaining share with a mortgage, you must apply for one at this stage. This is something your financial advisor should be able to assist with however the Storm team will help wherever we can.

Step 6 – Legal work

A solicitor will need to be appointment to prepare and execute the legal documents, acting on your behalf and in your best interest.

Step 7 – Exchange

After he deposit has been paid, contracts are signed and a moving in date has been agreed, the exchange of contracts will take place.

Step 8 – Moving day

The moment everyone is waiting for, moving in day! You can collect your keys, move your belongings in and relax in the comfort of your own home.
Storm will provide a moving in letter which outlines the following:

Warranty details
Building insurance details
Future monthly charges and payment methods
The funds collected on the day

* Rent for the month
* Rent for the next month
* Admin fee
* Annual insurance

KEY INFORMATION

1. RESPONSIBILITIES
Once you have bought your Storm shared ownership home, all the utilities bills, repair and redecoration of your property will be your responsibility.

Any structural changes to the property would need to be reviewed and approved by Storm. If you wanted to make structural changes, you would need to contact Storm directly to outline the changes you would like to make. Storm will review your proposal and revert with a decision or a request for more information. If Storm agree to the proposal and are satisfied with any supported documentation required, you are responsible for the structural changes.

2. ELIGIBILITY
You are able to purchase a Storm shared ownership home in England or Wales if:

The home you will be purchasing will be your primary and only home
You cannot afford to buy outright and do not currently own a property
You are registered and have been accepted with your local Help to Buy Agent
Your total household income is less than £80,000 per annum (£90,000 in London)
You successfully complete a financial assessment showing you are financially able to buy your desired share and support the monthly costs.

3. LEASE INFORMATION
Storm’s shared ownership uses a government standard shared ownership lease.
In the lease you will find:

A description of the property and its boundaries, highlighting which parts are your responsibility.
The share you have purchased
The start date
The amount of rent that you must pay
The other amounts payable under the lease
The rent increase, which is linked to Retail Price Index plus 0.5% each year
Your responsibilities e.g. repairs and maintenance of the property
Storm’s responsibilities as the landlord, e.g. building insurance arrangements
The procedure whereby you can buy additional shares to acquire a larger share of your home in the future
The method by which you can move home e.g. Selling your share or the whole property.