We offer what’s called a low cost home ownership (LCHO) scheme to help first-time buyers to get on the property ladder.
With an LCHO scheme, you can buy a home at a percentage of its open market value, typically 70%. It’s a more affordable option for buying a home as you need a smaller mortgage deposit.
For example, you would need a deposit amount of 5-15% of the 70% equity you hold in the property, rather than needing a deposit for 100% of the house value, as you normally would.
The remaining cost of the property (the 30%) is funded by an equity loan, which you can repay at any time. If you choose not to pay the loan, when the property is sold, the sale price will be split so the owner gets 70% of the sale price and the remaining money repays the loan.
Who is eligible?
Low cost home ownership schemes at new housing developments are done on a first come, first served basis. Applications are assessed on affordability and in accordance with the allocations policy for the particular development.
If you are considering applying for an LCHO scheme, please check whether you are eligible using the checklist below:
- You are 18 years of age or over
- You are in permanent employment
- You are unable to afford a home on full ownership suitable home
- You can afford to purchase between 50% and 90% of the property’s full value
- You can provide an in principle mortgage offer from a reputable mortgage lender
- You are not in rent arrears or in breach of a tenancy agreement
- You are not already a homeowner (subject to individual circumstances)
