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.
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.
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.
Who is eligible?
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