Where do you want to live?
Baker Estates is working in partnership with heylo to offer Home Reach, a part-buy-part-rent option on selected properties across our developments.
What is Home Reach?
With Home Reach, you buy a share of your chosen home and pay a low monthly rent on the part you don't buy. You get to choose whether you buy a bigger share of a lower priced home or a smaller share of a more expensive one.
With the Baker Estates partnership you can initially purchase between 50% and 75% of your chosen home and heylo will become your landlord, granting you a 125-year lease. This means you will be able to live in your home as if you've bought it outright. You can buy more of your home in the future and stop paying rent on that part.
Who is heylo?
Launched in September 2014, heylo has created one of the largest home ownership programmes in the UK, offering a number of different routes to ensure owning your own home is accessible.
Baker Estates are working in partnership with heylo to offer Home Reach, a part-buy-part-rent option on selected properties across the country.
Home Reach is simply about helping you get on, climb up and stay on the property ladder.
Home Reach... A more affordable way to buy
Smaller deposit requirements and lower monthly payments make it easier to buy the home you've always wanted.
You decide how much of your home you would like to buy, with shares between 50% and 75% (on a small number of developments there is the opportunity to purchase a lower percentage)
You are able to purchase your share with either cash savings or by taking out a mortgage. If you are taking out a mortgage to finance your share, then you will typically need to allow for at least a 5% deposit. The larger your deposit, the lower your mortgage payments will be.
On the share you don’t own, you will pay rent of 2.75% of the unsold value. This will be paid monthly by direct debt.
|50% Share Value||£75,000||£100,000||£125,000||£150,000||£175,000|
|Mortgage(3.5% interest rate)||£67,500||£90,000||£112,500||£135,000||£157,000|
|Monthly Mortgage Payments||£341||£455||£569||£676||£789|
|Monthly Combined Cost||£513||£684||£855||£1020||£1190|
|Indicative Income Requirement||£20,000||£26,000||£33,000||£37,413||£43,536|
Source: housing Jan 2018
Figures above are based on a 25 year repayment mortgage and a Home Reach lease with an initial rent of 2.75% on the unpurchased property value increasing by RPI + 0.5% each year. Your home may be repossessed if you do not keep up with payments on your mortgage or shared ownership lease. Additional service charges may be payable on properties with communal facilities or services. You will also need to consider the responsibilities and associated costs involved with owning a home (such as insurance and maintenance).
You are eligible to purchase a Home Reach property in England or Wales if:
- Your household income does not exceed £80,000 per annum for homes outside of London
- You have a deposit (at least 5% of the share value)
- You are a first-time buyer or used to own a home, but cannot afford to buy outright now
- You currently occupy a shared ownership property and are looking to move
- The shared ownership property will be your principle and only home
- You have passed a financial assessment, demonstrating you are financially able to purchase the minimum share value and support the monthly costs
The Home Reach lease from heylo
What's included in your Home Reach lease
The lease sets out:
- A description of the property including its boundaries and a guide to which parts are your responsibility – if a leasehold property, it will also contain any restrictions or obligations flowing from the superior leasehold title, such as the payment of ground rent
- The start date of the lease and the share that you have bought
- The amount of rent that you must pay, together with other amounts due under the lease
- The rent increase, linked to Retail Price Index plus 0.5% each year
- Your responsibilities as a leaseholder, such as all repairs and maintenance of the property and those of heylo as landlord under the lease, such as building insurance arrangements
- The method by which you can purchase additional shares to own more of your home in the future
- The method by which you can move home, either by selling your share or selling the whole property
What are your rights and responsibilities?
You are responsible for all utilitiy bills, repairs and redecoration of your property. It’s your place, your space – so make it your own!
The only exception would be if you wanted to make any structural changes. For this you would need to apply in writing to heylo outlining the changes you would like to make. heylo will review the application and will be in touch with a decision or requesting more information.
Once you’ve moved in
Once you've moved in, a member of the heylo team will be in contact.
Your welcome letter will outline who your managing agent will be, they will be responsible for collecting your rent and answering any questions you may have about your property and lease as well as guiding you if you decide you would like to staircase or sell.
Which Baker Estates developments is Home Reach available on?
Home Reach is currently available at:
Home Reach is a new build ownership solution brought to you by heylo housing group. The Home Reach shared ownership scheme cannot be used in conjunction with any other Baker Estates purchase scheme, offer or promotion. Subject to affordability criteria as prescribed by the Homes and Communities Agency. Subject to individual mortgage lender qualification and affordability criteria. More information on eligibility and affordability of using Home Reach to purchase your home can be found at www.homereach.org.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT