Low cost home ownership

At harmoni homes we offer a low cost home ownership scheme that provides assistance to first-time buyers trying to get onto the housing ladder in Wales. In the current climate purchasing a property is becoming more difficult. This scheme is intended to provide help to those people who can’t afford to buy adequate housing to meet their needs on the open market.

At harmoni homes we offer a range of equity buying options for those looking to become homeowners. We have new properties across South Wales and individual schemes offer a range of choice with regards to price and equity share.

Eligibility criteria

The schemes operate on a first come, first served basis and applications are assessed on affordability and in accordance with the allocations policy. .

The following criteria helps to determine those people who should be considered for the scheme. Please ensure you have reviewed the checklist before completing an application form.

The Checklist

Applicants must:

  • Be 18 years of age or over
  • Be in permanent employment
  • Be unable to afford a home on full ownership
  • Be able to purchase between 50% and 90% of the property's full value
  • Be able to provide an in principle mortgage offer from a reputable mortgage lender
  • Not be in rent arrears, or in breach of a tenancy agreement
  • Not already be homeowners – (subject to individual circumstances)

Allocation policy

If more than one applicant, who meets the eligibility criteria, applies for the same property, the following allocation policy will apply:- .

  • Priority 1 – Property suitability to family make up
  • Priority 2 – tenants of a housing association or local authority within the area of the scheme
  • Priority 3 – applicants currently on the waiting list of a housing association or the local authority within the area of the scheme
  • Priority 4 – applicants who are either employed or live in the area
  • Priority 5 – applicants who care for a relative (or other person) within the area of the scheme
  • Priority 6 – applicants who are none of the above but meet the eligibility criteria

A deadline for applications will be established for each scheme.

Properties will be allocated to Priority 1 applicants first (on first come first served basis); then Priority 2 etc.

Selling your property

When you wish to sell your property you must formally advise United Welsh in writing. You will not be able to sell your property without United Welsh's permission or knowledge.

A property valuation must be obtained in order to establish the property's full open market value (OMV) at the time of sale. This should be obtained from an independent valuation surveyor. United Welsh may arrange this for you but you will bear the cost.

United Welsh have an eight week period (known as the nomination period), from receipt of the valuation report, in which to introduce a purchaser to you, from our waiting list. United Welsh may introduce up to three purchasers, one of which could be United Welsh.

If a new purchaser is identified, they will purchase the property at the same secured percentage as that purchased at initial sale. For example, if you purchased your property for £70,000 which had a full OMV of £100,000, you retain a 70% equity share.

The new purchase price for the property will be calculated using the new OMV of the property, e.g.

If the full OMV has increased to £110,000, the purchase price will be £77,000 (70% of £110,000)

Or

If the full OMV has decreased to £90,000, the purchase price will be £63,000 (70% of £90,000)

As part of the re-sale covenant for Shared Equity properties, United Welsh will charge the vendor a percentage (which will be less than the normal estate agents fee and will be determined, at the point of sale, by the Director of Development) plus VAT of the vendor’s equity percentage at the point of sale.

If United Welsh is unable to nominate a purchaser and do not wish to purchase the property themselves, you are at liberty to sell the property on the open market via an estate agent. The property will then be sold at its full open market value and United Welsh's percentage equity share will be repaid upon completion of the sale.

To register your interest in this scheme, please complete our contact form.