Guide to Shared Ownership brochure

A Guide to Shared Ownership

Exchange of Contracts – The point in which you are legally bound to buy your property, although you cannot take possession until you reach completion. Freehold – Technical word for the ownership of a property, meaning it belongs to the owner without limitation of time. Help to Buy Agent – An agent appointed by the Government to administer their home ownership schemes. Homes England – This is the Government Agency that oversees the scheme. (I)FA – (Independent) Financial Advisor – A specialist who is trained to provide advice on mortgage products. Lease – The formal written agreement between you and bpha that details the ongoing relationship and each party’s responsibilities. Leasehold – Technical word for the right of use of a property for an amount of time. Memorandum of Sale – A document sent by us to you, your solicitor and our solicitor providing details of the sale. Mortgage Lender – The bank, building society or organisation that lends the money for you to purchase. Mortgage offer – Once the bank or building society have decided they are happy to lend to you, they will issue a formal mortgage offer detailing all the terms and conditions around your mortgage.

Mortgage (agreement) in Principle – This is a document provided by the IFA, bank or building society to inform you that they will lend you an amount subject to a full mortgage application. Mortgage Term – The period of time over which (repayment mortgage) or at the end of which the loan is to be repaid. RICs – The Registered Institute of Chartered Surveyors. An external body of which property valuers are qualified members. Searches – your solicitor will carry out some searches during the conveyancing process. This is information requested from the Local Authority and other organisation detailing any relevant information around the property you are purchasing. Staircasing - Buying further shares in your home. Sometimes this is capped, please ask at the time of reservation. Stamp Duty – A tax paid by purchasers of property with a value in excess of £150,000. Seek advice from a solicitor when purchasing a shared ownership home with regards to stamp duty tax. Valuation – The process in which the sales prices is determined. Valuation Survey – When you apply to a bank or building society for a mortgage, they will often contact the seller for access to look at the property and check they are happy with the value you are due to purchase it for before lending.

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