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Low Cost Home Ownership

We offer what’s called a low cost home ownership (LCHO) scheme to help first-time buyers to get on the property ladder.

With an LCHO scheme, you can buy a home at a percentage of its open market value, typically 70%. It’s a more affordable option for buying a home as you need a smaller mortgage deposit.

For example, you would need a deposit amount of 5-15% of the 70% equity you hold in the property, rather than needing a deposit for 100% of the house value, as you normally would.

The remaining cost of the property (the 30%) is funded by an equity loan, which you can repay at any time. If you choose not to pay the loan, when the property is sold, the sale price will be split so the owner gets 70% of the sale price and the remaining money repays the loan.

Who is eligible?

Low cost home ownership schemes at new housing developments are done on a first come, first served basis. Applications are assessed on affordability and in accordance with the allocations policy for the particular development.

If you are considering applying for an LCHO scheme, please check whether you are eligible using the checklist below:

  • You are 18 years of age or over
  • You are in permanent employment
  • You are unable to afford a home on full ownership suitable home
  • You can afford to purchase between 50% and 90% of the property’s full value
  • You can provide an in principle mortgage offer from a reputable mortgage lender
  • You are not in rent arrears or in breach of a tenancy agreement
  • You are not already a homeowner (subject to individual circumstances)

 LCHO Myth Buster

Myth 1: Low cost home ownership is a bit of a last option

It certainly is not a last option. Most first-time buyers need a deposit of approximately £30,000 today – that’s ten times as much as 30 years ago! By taking part in this scheme you will need a deposit of between 5%-15% of the 70% equity that you will hold in the property, you do not need a deposit for 100% of the value.

Myth 2: Low cost home ownership homes are ‘sub-standard’

Our homes are built to the same quality as any other property for ‘outright sale’. Instead of being forced out of the area where you grew up, low cost home ownership allows first time buyers to buy a quality home in an expensive area at an affordable price.

Myth 3: The monthly costs are high

Not at all, in fact low cost home ownership is often cheaper than renting. There may be a small annual cost to maintain a communal area or grounds but this will normally be shared amongst all residents at the housing development.

Myth 4: Low cost home ownership homes are hard to find

We regularly market properties available to purchase under our low cost home ownership scheme at many new developments. Please look at harmonihomes.com to find what LCHO properties we have available and follow us on Facebook.

Myth 5: Low cost home ownership homes aren’t big enough for a growing family

The size of our low cost home ownership homes vary from one to four bedrooms, ideal if you’re a first time buyer. Our scheme helps you get onto the property ladder, giving you that helping hand if you wish to purchase an even bigger property in the future.

Myth 6: You can’t make money on these houses so it’s not a good investment.

If your home increases in value, so does the value of your 70% share in the property. If you wish to buy your home outright and purchase the shared equity that United Welsh owns, you would have to pay 30% of its current market value. That means, if your property decreases in value, you could purchase your home outright for less than the initial value.

Myth 7: Low cost home ownership properties are hard to sell

Wrong! These homes are marketed in the same way as any other property for sale. In fact, they maybe more attractive to buyers for their affordable prices.

Myth 8: The process of getting a low cost home ownership home is complicated

The process is simple and our team are here to help. Get the ball rolling and click on the blue circle icon bottom right of your screen to chat to our Customer Engagement team.

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Selling your home

When you wish to sell your property, you need to formally advice us in writing. Visit our Selling your LCHO property page for more information about the process.

Sell your LCHO property