Helping people with learning disabilities purchase a home of their own Shared Ownership for People with Learning Disabilities

2 What is Shared Ownership An affordable alternative to renting or buying a property outright under the HOLD (Home Ownership for people with long term disabilities) scheme (Homes and Communities Agency)An affordable alternative to renting or buying a property outright under the HOLD (Home Ownership for people with long term disabilities) scheme (Homes and Communities Agency) The individual buys a share of the property (generally 60%) and rents the rest (on the remaining 40% of the property)The individual buys a share of the property (generally 60%) and rents the rest (on the remaining 40% of the property) It helps people who’s income would not support a full mortgageIt helps people who’s income would not support a full mortgage

3 What are the Benefits? The Home Owner can:The Home Owner can: Choose where they liveChoose where they live Choose the property typeChoose the property type Have security of tenure by having a legal share in the property (being able to stay as long as they want)Have security of tenure by having a legal share in the property (being able to stay as long as they want) Integration into the community through ordinary housingIntegration into the community through ordinary housing

4 How does it work? 3 steps to choice and security: Buy a share of the property Rent the remaining share Being able to live in their own home with support Choose a property

5 Choice of Property Through an Estate Agent Individual can choose the property within the limit of the mortgage arrangement (up to £100,000) The Housing Association buys the property The Individual buys a share from the Housing Association

6 Choice of Property New built, i.e. new developments from a Housing Association “One Stop Shop” Shared Ownership Can be quicker than through an Estate Agent – no onward chain Less choice of properties

7 Mortgage Mortgage is applied for through a specialist mortgage broker from the lender The mortgage interest is paid by Income Support (limit is £100,000) This Benefit is called SMI (Support for Mortgage Interest) Interest only Mortgage Lifetime Mortgage

8 How much does it cost? MySafeHome (specialist mortgage provider) £1300MySafeHome (specialist mortgage provider) £1300 HA property valuation fee £150 - £175HA property valuation fee £150 - £175 Solicitor £ approx £800Solicitor £ approx £800 Mortgage Application Fee £335Mortgage Application Fee £335 Approximately total = £ £2620Approximately total = £ £2620

9 Benefits Affordable Home Ownership Negative equity protection Housing Association provides repair and maintenance Access to properties worth more than £100,000 – maximum mortgage

10 Qualifying Criteria The individual being in receipt of benefits – DLA (13 weeks) In receipt of another qualifying benefit (Income Support, SDA etc) The individual has capacity A support package is in place for the Individual as well as an OT assessment of the chosen property

11 Monthly Housing Cost Property Value £160,000 60% Sale40% Rent £96,000£170/month Mortgage Service Charge (Repairs and Maintenance) £180/month

12 Monthly Housing Cost Payments Mortgage (£96,000) = £450/month – ISMI Benefit paid directly to RSL Rent = £170/month – Housing Benefit paid directly to Housing Association Service Charge = £180/month – Housing Benefit paid directly

13 Summary Individuals want to enter into Shared Ownership and they and/or they understand what it involves financially Have been in receipt of qualifying benefits for a minimum of 13 weeks Have a support package in place at their new home Can demonstrate that their new home would be more suitable than their present home Have sufficient income to meet the expenses of independent living, i.e. utility bills and housekeeping

14 Shared Ownership in Essex In 2008, five individuals with learning disabilities purchased their own home under Shared Ownership For 2009 so far, the number has doubled and currently there are 10 individuals going through the process Grant of £3000 to help with the mortgage fees, solicitor fees (conveyance fees) and the cost of the mortgage broker The scheme also works for people with more profound learning/physical disabilities

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