CHESTER City Council has launched its Homebuy scheme to help individuals, couples and families who cannot afford to buy homes on the open market to to buy a property.
The scheme helps people buy a property of their choice on the open market up to a value of £200,000.ŠThe council will fund up to 50% of the purchase price and the buyer will fund the remaining proportion.
The buyer will fund their share through a mortgage from an approved lender, such as a building society or bank; they will also need to have a deposit of at least 5% and pay for the purchase costs as well.
If the council funds 50% of the property, it would hold a 50% share in the equity and when the property is sold on, the council will be refunded their 50% stake.
The purchaser will not need to make any rent or mortgage payments to the city council and will only need to repay the council’s equity share when the property is eventually sold. The money is then recycled back into the scheme and another Chester resident could be offered assistance to buy their own home.
The council is paying for this scheme from its Affordable Housing Fund which was set up earlier this year when the council’s executive agreed that any money due to the city council from the sale of its former housing stock would be used for affordable housing projects. This money, together with money received in lieu of affordable housing provision at developments sites, such as the former Police HQ, have been put into an Affordable Housing Fund.
The affordable housing pot is a limited amount of money – however, the council hopes to be able to help up to five households in the first year.
Applicants will be assessed on a first come first served basis and once the first applicants have been approved the money will be ring fenced for them and they will be given a reasonable period to find a property. A waiting list will be held for further applicants.
For a Homebuy Information Pack please contact Alison Amesbury (01244) 402265 or pick up a pack from Reception at The Forum offices in Chester.