myhome Partnered Home Purchase
The newest way to get help buying a house in Winchester is through myhome Partnered Home Purchase Scheme, an open market shared ownership facility available from us, Winchester City Council.
You choose your house from the open market, and we will share the purchase with you. If you have a steady income, myhome is the perfect way to get on the property ladder in Winchester, with a home you have chosen yourself from the open market.
How it works
You choose your home from the open market, and we buy it outright on your behalf. You in turn lease between a 50-70% share from us, and pay monthly rent on the share you don’t own.
- This must be the only home you own, here or abroad
- You could be a first-time buyer, or returning to home ownership
- If you are a social housing tenant you must surrender your tenancy at the time of completion
- You must have a clean credit history covering the last 12 months
Places are limited on the myhome scheme, so a points-based system is used to see who will be accepted. Different criteria will determine if, and how quickly we can offer to help you.
An eligible home
The home you choose will need to be:
- Within the Winchester District boundary
- A house, not a flat, with one bedroom or more
- Worth up to the value of £450,000
- Acceptable for mortgage purposes and in a reasonable state of repair
- Considered habitable with a structurally sound roof in good condition
- Purchased with full vacant possession.
Properties excluded from the scheme are:
- Studios and apartments
- Commercial or part commercial properties. This includes live/work units
- Properties on sale at auction
- Plots of land on which to build, including self-build schemes
- Properties that have previously suffered from structural movement or subsidence
- Retirement housing
- Listed buildings
- Leasehold houses
- Unusual construction builds, this includes mobile homes, caravans or houseboats
- Leasehold properties that come with a Share of the freehold
- Properties that Winchester deem unsuitable
- Properties over the value of £450,000
- Properties under Right to Buy
The costs of your initial purchase
In addition to the deposit, mortgage and rent there will be certain costs you’ll need to cover yourself. These will include paying:
- Reservation fee
- Stamp duty for your share of the property
- Legal fees (to include solicitor’s costs, searches, electronic transfer fee) approximately £2,000
- RICS HomeBuyer Survey, approximately £200-£500
- Service charge per annum– this includes building insurance and an administration fee.
£500 is payable to Winchester City Council (refundable once property has been purchased, however if the sale falls through it would be non-refundable).
You will need to obtain a professional valuation report. This will need to be in the joint names of Winchester City Council and yourself. The price will vary depending on the value of the property, however typically, this will cost around £200 - £500. This is paid just before instructing solicitors.
You will appoint a solicitor to carry out the legal requirements of your house purchase. Solicitor fees can vary between £850 - £2,000.
Carried out by your solicitor, this includes investigation into Local Authority, water, drainage and environmental factors which may affect your property in the past, present or future. The likely cost is in the region of £450.
Electronic Transfer Fee
This covers the lender’s cost of transferring the mortgage funds to your solicitor. Typically, this costs around £50.
Further fees under your Shared Ownership lease
Part of the process means you will need to pay engrossment fees and notice fees to Winchester Council this costs around £150.
Stamp Duty Land Tax
Stamp Duty (SDLT for short) is a tax payable on all property transactions. Calculating SDLT on a purchase transaction is usually straightforward, but for Shared Ownership properties is a little more complicated. While you will need to discuss the detail with your solicitor here are a few pointers. The usual rates of SDLT are:
- First £125,000 of purchase price: Nil
- Portion from £125,001 to £250,000: 2%
- Portion from £250,001 to £925,000: 5%
For people purchasing their first home, there is currently an increased exemption so that SDLT is charged at nil on properties worth under £300,000. You will need to discuss with your solicitor whether you qualify for this exemption.
When you are granted a Shared Ownership lease, you have the option of paying SDLT on the full market value of the property or paying duty on the price being paid for the initial share and on the specified rent payable per annum. The benefit of paying SDLT on the full market value of the property is that once you’ve done that, there will be no SDLT every time you staircase.
Under myhome Partnered Home Purchase Winchester Council also pays SDLT on the full value of the property when buying the freehold.
Ongoing Service Charge
This will be charged each year by Winchester Council. You won’t have to organise your own buildings insurance as this will be included in the service charge.