Slough Borough Council: Low Cost Home Ownership

Low Cost Home Ownership

What is Low Cost Home Ownership (LCHO)

Low cost home ownership is the term used for all home ownership schemes designed to help people who wish to buy a property but cannot afford to. There are four LCHO options available to help people who live or work in Slough, they are:

Mill Street development

New Build Homebuy (previously called shared ownership or part-buy/part-rent) enables people to buy a share of a property owned by a housing association and pay a subsidised rent on the remainder. You can usually buy as little as 25% share and up to a 75% share. The exact share you buy will depend on the share being sold by the housing association and the share that is affordable to you. The combined monthly costs of the rent and the mortgage will normally be less than buying a home outright. Later, when you can afford it, you can increase your share until you own the whole property outright. This process is called “staircasing” and will be subject to certain conditions set by the housing association. Resales are part-buy/part-rent homes that come back on to the market when existing leaseholders wish to sell. You have to buy the share that the existing leaseholder is selling. Visit the A2 Housing Group, which provides a wide range of houseing solutions for people throughout London and the South.
Open Market Homebuy - there are two options: Option 1 Catalyst Housing Group will give you a loan of up to a maximum of 17.5% of the purchase price of your chosen property. You can obtain a mortgage from any qualifying mortgage lender that is regulated by the Financial Services Authority (FSA). There is no ongoing charge or interest on the loan but you will have to repay 17.5% of the market value of the property when you sell (or less if you were given a smaller loan). Your Homebuy Agent in Slough is the Catalyst Housing group. For more information on Homebuy Agent in Slough visit their website. For details on the Catalyst Housing Group, visit their website. Option 2 allows you to look for a property suitable for your needs on the open market and to buy the property with the help of a 25% equity loan. You will need to raise a mortgage for around 75% of the cost of the property. Two equity loans, each worth around 12.5% of the value of the property, will be provided to you. The first 12.5% is provided to you by the lender that you select to provide you with the 75% share and the second 12.5% is provided to you by your Homebuy Agent. There are no monthly repayments for the first five years on the loan provided by your mortgage lender and after five years they will charge reduced rates. On the loan provided by your Homebuy Agent there will be no monthly repayments throughout the course of the loan but you will have to repay 12.5% of the sale price when you sell the property. Your Homebuy Agent in Slough is the Catalyst Housing group. Visit the Homebuy Agent in Slough for more details. For information on the Catalyst Housing Group, check their website.
Keyworker Schemes allows key public sector workers, such as a nurse or teacher, to buy or rent a home. The two main schemes for keyworkers are New Build Homebuy and Open Market Homebuy (see above for information on these schemes). Catalyst Housing Group are the zone agents for the key worker schemes. All qualifying key workers must register with them. To register visit the Catalyst Housing Group's website.
Intermediate Renting allows keyworkers to rent a home at below market rent. This is for keyworkers who are looking for short and mid-term renting on an assured shorthold tenancy. There is only one of these schemes in Slough consisting of 15x 1 bedroom apartments at 286 High Street, Slough. Check the A2 Housing Group website for more information.

Am I eligible?

Priority will be given to the following:

Council and housing association tenants as we will be given nomination back into the vacated property
Those placed by Slough Borough Council in temporary accommodation
Housing register applicants who live and work in the borough
Keyworkers under the keyworker definitions
Housing register applicants who work in the borough
Housing register applicants with no connection to the borough

You must be able to obtain a mortgage or have sufficient savings to buy into a property.

Duvall Court, Merton Road

How to apply

If you feel you qualify for low-cost home ownership schemes in Slough you will first need to join our housing register, so please complete an application form. You can download the application form and information booklet hereor call us on 01753 475111. If you are already on the housing register and would like further information on all the low cost home-ownership schemes, please call the Housing Initiatives Officer on 01753 875543 quoting your housing registration reference number.

Fees and Costs

All the usual costs involved with buying a property will apply (legal fees, valuation fees, mortgage arrangement charges and stamp duty).

Your expenses each month will include your monthly mortgage repayments, buildings and contents insurance (buildings insurance is sometimes collected with the service charges) and the rent on the share of the property owned by the housing association. You will also have to budget for utilities such as gas, electric, water and other costs such as council tax, telephone, television etc.

Please remember that your home will be at risk if you fail to keep up your mortgage and rent repayments.