Home Reach

WHAT IS HOME REACH?

We’re working in partnership with heylo housing to offer Home Reach - a scheme that lets you buy up to 75% of your home and pay rent on the bit you don’t own. It works because you can buy as much as you can afford now, with the option to buy more shares in the future.  


Is it right for me? 

It’s possible to buy your own home now because you choose how much of it you buy now – with shares of up to 75%. 

Altogether more affordable 

There’s a smaller deposit, low monthly mortgage repayments and low monthly rent. 

Flexible 

You’re in control because you can increase your level of ownership and pay less rent, or sell and move at any time. 


FOR EXAMPLE

 

Property Value   £180,000   £245,000
50% Share value   £90,000   £122,500
10% Deposit   £9,000   £12,250
Mortgage (3.5% interest rate)   £81,000   £110,250
Monthly mortgage payments    £427.10   £561.33
Monthly Rent    £206.25   £280.73
Monthly combined cost   £633.35   £862.06
Indicative income required   £24,445   £32,687
             
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).

 


How does Home Reach work? 

It’s good to have the right information to hand before you make any important decisions. So here are some key details about how the Home Reach scheme works.  

To read the fine print, please see our full terms and conditions 


  1. Find your new home
    Home Reach is only available on selected homes on selected developments. Simply look for the homes that are ‘part rent part buy’ on our website. 
     
  2. Pay your deposit
    You’ll pay a deposit of around 5-10% of the share of the home you want to buy. 
     
  3. Decide how much to buy
    Take out a mortgage to buy shares of up to 75%. You choose the share you want to buy.
     
  4. Pay rent on the rest
    You’ll pay a low monthly rent of 2.75% on the remaining share of your home that you don’t own. Plus, if you decide to buy more shares later, your rent will go down.
                     

Am I eligible for Home Reach?

You’re eligible to purchase a Home Reach property with us if:

 

  • Your household income is less than £80,000 per year, for homes outside of London
  • You have a deposit (at least 5% of the share value)
  • You’re a first-time buyer or used to own a home, but can’t afford to buy one outright now
  • You currently occupy a shared-ownership property and are looking to move
  • The shared-ownership property will be your principal 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.  

Who is heylo?

heylo was launched in September 2014 and is one of the largest accessible home ownership programmes in the UK.

We are working in partnership with heylo to offer Home Reach – a part buy, part rent scheme that’s available on selected properties across the country.

What’s included in my 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 my rights and responsibilities?

Your home is your space, so you’re responsible for all utility bills, repairs and redecoration.

The only exception would be if you wanted to make any structural changes. If this is something you’d like to do, apply in writing to heylo outlining the changes you’d like to make. heylo will review your application and get in touch to either give you their decision, or request more information.

 

What happens once I’ve moved in?

Once you’re in and settled, a member of the heylo team will get in touch.

You’ll receive a welcome letter telling you who your managing agent will be. They’ll be responsible for collecting your rent, answering questions about your property and lease, and guiding you if you’d like to buy more shares or sell.

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