What is the New Build Shared Ownership Cycle?
Many first-time buyers are scrambling to submit their applications for the Help-to-Buy scheme as the application deadline approaches on 31st October 2022. The government introduced the Help-to-Buy Equity Loan scheme to help those struggling to get on the property ladder by giving a loan worth up to 20% of the property value (40% value in London). This scheme in particular is only applicable for homes in England but similar schemes are available in Wales- for more information read our article and visit the Welsh Government Website.
If you are considering applying, you may already be aware of the 31st October deadline. However, there is also a construction deadline meaning the property must be signed off by the 31st December 2022 with legal completions finalized and completed by 31st March 2023- when the scheme officially ends. This may seem overwhelming, but if you are looking to purchase a property without the constraints of the Help-to-Buy deadline, you could alternatively opt to buy a New Build home as a Shared Ownership purchase.
To help make sense, we have outlined the phases of the Just Mortgages New Build Shared Ownership cycle.
Phase 1
The first step in the process is to get your mortgage qualified by Just Mortgages New Build division. Then, you would apply for the Shared Ownership approval from the Help-to-Buy agent. The site agent would then apply to the housing association on your behalf to make the full reservation of your property. Solicitors would be instructed and searches would be carried out. Your mortgage and protection needs would be assessed by meeting with a New Build mortgage adviser, who would then submit your mortgage application and instruct surveys to be taken out. Then, you should expect to receive your acceptance of Shared Ownership.
Phase 2
Valuations should be conducted and underwriting should be completed. During this phase, your mortgage offer should be issued leading to a review of your mortgage and protection needs. By the end of week three, you should have signed contracts and mortgage deeds.
Phase 3
In the process of exchanging contracts, your solicitors would apply for authority to Exchange from Help-to-Buy which could take up to three days. Your minimum required deposit payable, if applicable, would be transacted. Ensure that your life insurance policy is on risk (live) as the property would legally become part of your estate.
Until build complete
Finally, the remaining deposit would be paid along with contents insurance on risk, as you are now legally responsible for anything that happens to the property. Once informed by solicitors and estate agents, you should be able to pick up your keys and move in to your new home!
Please note: it may take more or less time to complete your property purchase due to factors outside of our control.
YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE