Frequently Asked Questions
What is Newbuild Homebuy?
Newbuild homebuy (formally known as shared ownership) is a government low cost home ownership option whereby eligible applicants can part buy/part rent a newly built Sentinel property. Purchasers normally buy a 50% share, and pay a subsidised rent to Sentinel on the remaining share.
What is Intermediate Market Rent?
Intermediate Market Rent is a rent which is 80% or less than the ‘market’ rent charged for an equivalent property by a private landlords.
Who is eligible to apply?
Anyone can apply who:
- Does not have any legal or beneficial interest in another property either in the UK or abroad.
- Has sufficient savings to cover legal fees etc
- If self-employed is able to show three years audited accounts.
- Some properties are specifically for key workers.
How much do I need to earn?
The required income level depends on the value of the property which will be determined by location and size.
Can I buy the property jointly with someone else?
Yes, as long as your joint income does not exceed the maximum and you both meet the eligibility requirements.
Who are classed as Key workers?
The definition of a key worker is determined by the government and is subject to change. Police, Fire Fighters, Teachers and NHS clinical staff are normally classed as key workers. Please contact Sentinel Homescope to determine if you are a key worker.
Will Sentinel repair the property?
Sentinel will not carry out any repairs or maintenance to your property if it is a house. This applies whether you purchase a 50% share of the property or 100% of the property. Purchasers of apartments will have full responsibility to carry out repairs inside their home but are not responsible for external and communal areas such as stairways. There is a service charge payable to cover these costs.
In the majority of cases purchasers of houses will also have to pay a service charge for items like: Buildings insurance, maintenance of car parking spaces/ un-adopted roads. The service charge will not be related to the maintenance of the house.
Do I need to arrange for buildings insurance?
Sentinel Housing Association retains the freehold interest in the property and this means that we must insure the structure of the building. This is arrange through a block policy. As so many of our properties are insured under this policy , we receive a discount on the premiums which we pass on to our lessees.
You will need to notify your lender that Sentinel Housing Association insure the building. You will be responsible for arranging your home contents insurance.
After I purchase the property from Sentinel am I free to sell it whenever I want to?
Your lease will state how long you have to wait before selling your property after purchasing it. With Newbuild Homebuy and shared ownership properties we have the right to nominate a purchaser from a waiting list of people interested in buying properties like yours.
Does the rent contribute towards my mortgage?
No, the monthly rent payment does not pay off your mortgage. It pays for the portion that you have not purchased.
Can I buy further shares?
It is possible to buy further shares over time and eventually own the property outright. This is called staircasing, some leases restrict you purchasing further shares in the first year of your lease.
Can I sublet my property?
No, Government money goes into affordable home ownership schemes, so we have to control who benefits from it. It needs to be your main residence.
In a very limited number of circumstances we will look into the possibility of you subletting your property.