Shared Ownership Home Buying Process

So you’ve found your dream home through Plumlife, what happens next?

Shared Ownership home buying process

1) Eligibility

Eligibility criteria for Shared Ownership:

  • Joint household income of no more than £80,000 per year
  • Not own a property or part in a property at the time of completing your new home

Online Application - Apply online at www.helptobuyagent1.org.uk – the Help to Buy team will assess your eligibility for Shared Ownership within four working days of applying. The application should only take around 10 – 15 minutes, if you have any issues please contact Help to Buy on 0300 790 0570.


2) Affordability assessment

We work with a financial advisor called Metro Finance, who will use an affordability calculator to work out the maximum share that you can purchase. Please contact Metro Finance on 0114 2999 380 for your assessment, or you can input your details online at www.metrofinancelive.co.uk .

Using the calculator ensures that we can offer you the maximum share you can afford, without overstretching you. This is a free service, and Metro will also be able to help you secure a mortgage in principle if you wish.

 

3) Documents

Metro Finance are responsible for collecting documents on behalf of Plumlife. You will need to provide the following documents either by email attachment, document upload to the Metro Finance portal or as a photocopy by post:

  • Photographic ID (Passport or Driving License for all applicants)
  • Your last 3 months’ payslips (If self employed, you will need to provide 2 years of accounts by a qualified accountant or 2 years of SA302s, if the mortgage lender will accept these). Please note if your income is from a different source such as pension or disability benefit we require proof of your annual income.
  • A mortgage in principle. This proposes the amount the provider is prepared to lend, the interest rate and the number of years to repay.
  • Proof of funds for a deposit (Bank statement or screen shot of online banking)
  • Working Tax Credits (excluding child-care credits)

 

4) Solicitors

You would then need to appoint a solicitor to act on your behalf. They will handle the conveyance for you (transferring the title to you legally), explain the terms of your lease and deal with Plumlife’s solicitor on your behalf.  There will be a cost to this so please bear this in mind when budgeting for your new home. Your solicitor will clarify the costs associated with this work with you.

If you are not sure which solicitors to use, we have a panel of recommended solicitors, who are all familiar with the Shared Ownership sales process. Using one of our panel solicitors helps the sale progress as smoothly and quickly as possible.

 

5) Payment and reservation

Once our Sales Advisor is happy that all information has been supplied and all criteria satisfied, you then need to pay the £500 reservation fee to secure the property and take it off the market. This can be paid by credit or debit card over the phone.   (This fee will come off the purchase price of the property when you complete.)

Once you have paid the reservation fee your sales advisor will take you through the next steps of the sale and provide you with the reservation paperwork.

Plumlife will then issue a Memorandum of Sale (MOS) to all solicitors involved in the transaction. This summarises the details of your proposed house purchase and allows our solicitor to send the draft documents to your solicitor so they can start the conveyancing process.

You will also need to submit your full mortgage application to your chosen lender at this point.  Again this is something Metro Finance can do for you if you if you prefer.

6) Exchange of contracts

About six to eight weeks after reservation, subject to legal and mortgage arrangements being in place, contracts will be exchanged. You will be expected to pay 5% deposit at this stage and the whole transaction becomes legally binding.

 

7) Completion day

On completion day, at your solicitor’s request, your mortgage lender will release the funds to pay for your home. You will also need to pay any further deposit you will be putting towards the purchase price to your solicitor.  The final balance of funds will then be passed onto Plumlife’s solicitor. Once this has happened, you officially become the homeowner of the property.

One of our Sales Advisor’s will meet you at your new home to handover the keys, and answer any questions you may have about your new home.

You will also receive:

  • Meter readings
  • Property walkthrough, including instructions for appliances, boiler and heating
  • HUG (home user guide)
  • Defect procedure
  • Appliance warranties
  • M&S hamper as a welcome gift*

*M&S hamper for Plumlife and Cube Homes customers only.

This process does not apply to resale Shared Ownership homes.