What is a Landspeed shared purchase home?
An affordable home to help you to get on to the property ownership ladder. With a Landspeed home you will buy the freehold or own the long leasehold interest of the property, but pay no more than 80% of the open market value. The balancing share will be legally secured by Landspeed but, unlike other shared equity/ownership schemes, we do not charge rent or interest on this share and you are under no obligation whatsoever to pay for this share or buy it at any time in the future. Your purchase can be funded by a mortgage and with no rent charged on the balancing share this means that you only have to meet the cost of your mortgage and other standard home costs.
Can anyone buy a Landspeed property?
No. You must be unable to buy an equivalent property on the local open market and have a local connection to the area. Equally important, you must be able to afford the cost of buying a new Landspeed home; principally qualifying for a mortgage and having the necessary deposit.
How will I know whether I qualify for a Landspeed home?
You will complete our application form and we will check that you satisfy the qualifying criteria. The next step will be for us to refer your application form to an independent financial adviser who will carry out checks to ensure that you will qualify for a mortgage and can sustain the purchase of a new home. You will be informed of the result of these checks and if ‘approved’ we will then advise you of the next steps towards owning a new property with Landspeed.
Can I buy if I currently own a property?
Yes, in most instances, so long as you have agreed to sell your existing property (i.e. have accepted an offer) and have a complete chain. If this is not the case then you may not be able to exchange contracts within the timescales required. We will also check your application to ensure that you have a genuine reason for needing to move to a Landspeed property. We will consider all applications on merit; therefore if you are not sure please contact us and we will discuss your situation.
What will the initial costs be?
You are strongly advised to seek independent financial advice, but your costs will ordinarily include legal fees, mortgage application fees and stamp duty (we will advise you if this is the case). You will also need to pay a deposit and this could be as low as 5% of the purchase price (your mortgage advisor will tell you exactly much is required). Annual building management charges may apply on flats to cover the cost of maintaining common parts. We will confirm these costs but your solicitor will also advise you of these.
I haven’t got access to any savings, does this exclude me?
Generally yes, as your only option will be to borrow the money, adding to your monthly costs, unless of course your family can help. If you wish to discuss this in confidence, then please contact us.
How do I get a mortgage and ensure I can afford the repayments?
You are strongly advised to visit a reputable bank, building society or financial adviser, although please be aware that not all mortgage companies will lend on this type of home purchase. We work with independent financial advisers who have experience of arranging shared equity and shared ownership mortgages and have extensive knowledge of the Landspeed product. We will be happy to supply their details as this may be helpful to you, but you are entirely free to talk to other companies.
Can I buy with someone else?
Yes, but you must become legal joint owners and all applicants must meet the qualifying criteria. It is important that the application form clearly indicates this and provides details of both applicants’ respective savings and incomes.
What will be my rights responsibilities and costs after buying?
The contract will define these and your solicitor will advise you more fully. However you will be responsible for paying; the maintenance and decoration of your home; council tax; services (gas, water, electricity etc), regular gas safety checks; any annual building management charge and, of course, your mortgage payments.
Can I make alterations to the property?
You must obtain the consent of any legal chargee of your home (i.e. mortgage provider and ourselves) or, where applicable, the freehold owner if you want to make any structural alterations or improvements. The contract will cover this aspect in greater detail.
Can I rent the property out?
In general the answer is no, although if you encounter particular circumstances that will leave the property empty (a short term employment relocation for example) then we will be happy to discuss this with you, subject to your mortgage provider’s approval.
Can I buy more equity in the property?
There is no obligation for you to purchase extra shares in the future if you do not want to. However if, at any point after the first year of owning, you wish to own more or all of your Landspeed home then you can choose to buy additional equity in a maximum of 4 equal shares (which can be combined). Once you have bought the balance you will own your home outright and our legal interest will be removed. Your solicitor will advise you in greater detail on this aspect.
What about when I want to sell?
You can sell at any time but you must give us notice in writing. There is then a set period in which to nominate a buyer who qualifies in the same manner in which you yourself did. You will benefit from any increase in the value of your share of the property at that point in time, although you should be aware that you will also be affected by any fall in values. You will be required to pay for an independent valuation and any other costs associated with the sale of your home.