These properties are sold at below market value, usually at a discount of between 20% and 30%. You buy the property at a discounted price and own the entire property. Unlike shared ownership, you do not have to pay rent on a remaining share of the property.
When you come to sell the discounted property, the saving is passed on to the next buyer so that the property remains affordable. For example, if you pay £80,000 for an affordable property worth £100,000 and it rises in value to £110,000 by the time you sell it, the 20% discount would be passed on and you could sell it for £88,000. This will be detailed in the Deeds and a covenant relating to the purchase.
All of the detail as to how a developer must dispose of discount market homes is detailed in a legal agreement called a S106. Your solicitor can explain how this works and how this relates to your purchase and future re-sale.
The homes that are to be sold at a discount are advertised by the developer for that site and enquiries should be made with the sales office. There is no register to join if you are interested in discount market sale homes. They are usually allocated on a first-come-first-served basis to purchasers who meet the criteria.
The general criteria is as follows:
First time buyers (there are some caveats to this so please check)
Household income of no more than £80,000
Local connection to Test Valley (as per local connection set out in the Allocations Policy relating to Test Valley Hampshire Home Choice)
Property to be used as main or principal home
The sales office will provide you with details on how to access an eligibility form for an eligibility check that will be carried out by Test Valley Borough Council. Once this is completed the sales office will begin the process of purchase with you. The form can be found here.
If you require any further information, please contact:
The Housing Development Team
Telephone: 01264 368000
Or email: firstname.lastname@example.org