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 purchase a greater percentage of your home in the future and only pay rent on the remaining balance.
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.
Home Reach is simply about helping you get on, climb up and stay on the property ladder.
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%
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:
What’s included in your Home Reach lease
The lease sets out:
What are your rights and responsibilities?
You are responsible for all utility 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, 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.
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