Struggling to take your first step onto the property ladder? Did you know you can buy 60% of your home now, and pay a low rent on the rest or buy the remainder of the home at a later date.
Home Stepper is a Shared Ownership scheme launched by affordable housing provider Sage Homes with partner housebuilders which makes a new-build home more affordable to more people.
Unlike other SO schemes, Home Stepper is available on a much wider range of properties with fewer eligibility requirements to be met. With Home Stepper you have the chance to buy a percentage of a new Taylor Wimpey home. Sage Homes will own the remaining percentage and become your landlord, granting you a 990-year lease of your home.
You will pay rent to Sage Homes on the percentage of your home that you don’t own.
This is dependent on your individual financial circumstances, but you can buy a share of up to 75% of your home based on your level of affordability.
You can also choose to gradually increase your share of home ownership through a process known as ‘staircasing’. This means that, in time, you could own up to 100% of your home. At this point you will have 100% interest in your property meaning you either own the freehold of the house or the full leasehold interest of the flat.*
You will be able to sell your home at any time.
To avoid repaying the unacquired percentage of your home at the point you sell it you will need to notify Sage Homes of your wish to sell and agree the sale value of your home with an independent RICS valuation. You will need to offer your home to people who meet the Home Stepper eligibility criteria (Sage Homes nominees) for 4 weeks from receipt by Sage Homes of your intention to sell so that other people can benefit from the scheme.
If a Sage Homes nominee cannot be found to buy your home, or if one is found to buy your home but fails to exchange contracts with you within 12 weeks of your solicitor issuing the draft sale contract (and related sale documentation), then you are free to sell your home on the open market. If you do so, on completion of the sale you must repay to Sage Homes, the market value of the unacquired percentage (the percentage Sage Homes was, prior to the sale, the owner of).
Sage can help you with a guide to reselling your home.
Yes, you will need to pay stamp duty, which is based on the share of the home you are purchasing outright, subject to any allowances which may offset your SDLT. Please do ask your solicitor to calculate this for you.
If you wish, you can choose to pay the stamp duty on the remaining share of your home at the point of formal completion. Alternatively, you can pay the remaining stamp duty when you choose to resell the property (assuming you sell on the open market and are repaying to Sage Homes the market value of the then unacquired percentage of the home).
All Shared Ownership customers that purchase a Taylor Wimpey home under the Home Stepper scheme are responsible for completing and/or paying for repair works that are not covered by Taylor Wimpey’s two-year customer service warranty or the NHBC’s 10-year building warranty.
If your chosen home is sold with white goods such as a fridge and washing machine, each of these items will be covered by an individual guarantee which will be shared with you upon legal completion.
The term “Shared Ownership” refers to the fact that you are acquiring a share of the home, with Sage Homes owning the unacquired share. During the term of the lease you are able to live in the home as if you own it outright (subject to the terms of the lease).
While you are welcome to purchase a Taylor Wimpey home in partnership with another person, this is not a requirement of the Home Stepper Shared Ownership scheme. If you are acquiring with another person then your combined household income must not exceed £80,000 (£90,000 in London).
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You can purchase a maximum share of 75%
Home Stepper is available on selected plots at developments located in the following business units:
Bristol
East Anglia
Exeter
Southern Counties
South Midlands
Affordability and eligibility criteria apply as prescribed by Homes England. The scheme is subject to you first obtaining approval from Sage Homes before reserving a new home from us. For more information about Home Stepper please visit www.sagehomes.co.uk/home-stepper. For plot specific information, please speak to a Sales Executive. Annual rent is payable on the percentage of your home that you do not own at a rate of 2.75% reviewed annually (usually by RPI + 0.5%). Additional service charges may be payable on properties with communal facilities or services, a lease management fee of £195 per year payable to Sage Homes may apply. You will also need to consider the responsibilities and associated costs involved with owning a home (such as insurance and maintenance). Your home may be repossessed if you do not keep up with payments on your mortgage or shared ownership lease.
Offer may be withdrawn or altered at any time prior to payment of reservation fee on the relevant plot.
Offer cannot be used in conjunction with any other offer.
Offer may not be accepted by some lenders or may lead to refusal to provide a mortgage based on your circumstances.
Our usual reservations and sales terms and conditions apply. Please speak to one of our Sales Executives
Should you purchase a property under the Home Stepper scheme your personal data will also be processed by Sage Homes as set out in their privacy policy - www.sagehomes.co.uk
