Buying and selling affordable home ownership and shared ownership properties
If you own a property that is shared ownership or the Council have the freehold or restricted approval of the resale to another person, then you must contact Lisa Micallef, Housing Development Officer at Derby City Council. Telephone 01332 640775 or email Lisa.Micallef@derby.gov.uk.
The criteria for purchasing one of these properties
- You are 18 or over
- Your household income must be between £15,000 and £80,000 (although the lower value may vary depending on the price of the property)
- You do not currently own a home or have your name on another mortgage
- You are able to obtain a mortgage or have cash available (you will still need Derby City Council’s approval)
- You have not been in mortgage or rent arrears or in breach of your current tenancy agreement
- You have a good credit history and all cash applicants must undergo a credit check
- You have at least £2,500 to cover the costs associated with purchasing a home
- Priority is given to serving members of the armed forces, current local authority or housing association tenants
All purchasers will need to provide ID (passport or driving licence) and proof of earning to ensure they do not breach the above criteria.
Costs involved with purchasing or selling a property
- A valuation carried out by the Council’s valuer payable on completion of the sale
- Administration fee payable to Derby City Council on completion of the sale
- Estate agent fees
- You will have to pay for your own legal costs. Costs vary and you need to ask your solicitor for a fee quote prior to instructing them. Fees can also include a Notice of Assignment Fee, Deed of Covenant Fee, Land Registry Fee, a bankruptcy search, coal mining search, environmental search, leasehold enquiries fee (LPE1)
- You may have to pay for the Council’s legal costs if work is required and we are not selling any of our shares – for example, resale of a shared ownership or freehold property
- Depending on the value of the property you may have to pay Stamp Duty Land Tax (SDLT). This is a tax paid to the government when you buy a home. Your solicitor will be able to tell you if SDLT applies on your purchase and how much it will be.
The purchaser will have ongoing costs, which may include:
- Rent (increased annually)
- Service charge
- Management fees
- Ground rent
- Audit fee
- Buildings insurance
- Sinking fund contributions