Shared Equity Housing Scheme Download application form here
The scheme was designed in order to meet the housing needs of local people who were unable to afford to purchase a home of their own in the commercial housing market. Properties are sold on a Shared Equity Leasehold basis whereby the purchaser owns either a 72 or 76% share of the equity and pays a monthly charge which is currently £34.61 to cover rent and administration costs to the Council for the remainder. This has the effect of keeping the price of these properties considerably lower than similar properties on the commercial market.
Prospective purchasers should note that the Council will retain its share of the equity in perpetuity and it will not be possible now, or in the future, to purchase the Council’s share.
The development comprises 54 properties at Larkfield Road and Ramsey Road, Ely (off High Barns, between Ely Infants School and Larkfield Centre).
There are 50 x 2 bedroom houses
2 x 3 bedroom houses
2 x 1 bedroom bungalows
When completed in 1992, each property had gas central heating, double glazing and a fully fitted kitchen. Current and previous owners have now improved some properties. Each property has gardens to the front and rear and allocated space for parking of 2 cars.
WHO CAN BUY ?
As these properties are intended to meet the housing needs of local people, prospective purchasers will need to satisfy at least one of the following conditions:-
(a) Have immediately prior to their application been ordinarily resident or employed within the administrative area of the City Council; or-
(b) Have a strong local connection with the administrative area of the City Council because of family connections or previous residence; or-
(c) Have been ordinarily resident in any adjacent parish to the administrative area of the City Council; or-
(d) Have been ordinarily resident elsewhere in East Cambridgeshire District.
Their income must be insufficient to enable them to purchase a home on the open housing market.
If you are unsure if you would meet the criteria for the scheme, please contact the Council.
At time of printing, the equity share value of 2 bedroom houses is in the region of £105,000-£115,000.
Specific details about an individual property which is for sale should be obtained from the seller of the property when viewing.
You should bear in mind that house prices are subject to fluctuation and may rise or fall.
WHAT ABOUT A MORTGAGE ?
Prospective purchasers are responsible for arranging the finance necessary to purchase a house and are advised to consult a bank or building society about their mortgage position before making an application to the Council. It should not be assumed that a mortgage for the full purchase price of a property will be offered and the balance of money required to make up the purchase price would need to be provided from another source. It is likely that a 15% deposit will be required.
In addition, there will be legal costs concerned with the purchase. Please be advised that the Council does not offer a mortgage indemnity clause within the lease. Some lenders will not offer a mortgage without this condition. Therefore, when enquiring about a mortgage you will need to make this clear to the lender.
Prospective purchasers are advised to consider the implications of house purchase very carefully before committing themselves.
HOW THE SCHEME OPERATES
A waiting list of prospective purchasers is maintained by the Council. If you wish to apply to join the list you should complete and return the enclosed application form. After verification of the information you have supplied e.g. salary, you may be invited to attend an informal interview to ensure you meet the criteria of the scheme. You will then be informed whether or not you have been accepted onto the waiting list.
HOW LONG WILL I WAIT FOR A HOME ?
Existing owners of houses notify the Council when they wish to sell their properties. The seller then arranges for the property to be valued by 2 local estate agents. The property is then offered to the first person on the waiting list at the valuation price and, if accepted by the first person, the sale proceeds in the normal way. Should the first person refuse the property, it is then offered to the second on the list, and so on until a buyer is found. However if there is no one on the waiting list then the existing owner will have been given permission to place the property on the open market. In which case a new applicant who has been accepted on to the scheme, will be able to make an offer for a property.
IF YOU REQUIRE ANY ADDITIONAL INFORMATION ABOUT THE SCHEME OR HAVE QUESTIONS ABOUT POINTS NOT COVERED IN THIS LEAFLET, PLEASE DO NOT HESITATE TO CONTACT:
CITY OF ELY COUNCIL
72 MARKET STREET, ELY CB7 4LS
TEL: 01353 661016
OPEN MONDAY TO THURSDAY 10AM - 2PM