Guide to Shared Ownership brochure

A Guide to Shared Ownership

What do I need to know? Warranty – As well as a defect period, your new home will have an NHBC structural warranty (or equivalent from an alternative provider). This is provided by an independent body and normally lasts for 10 – 12 years (from the date the build is signed off by the warranty provider). If you make a claim on the warranty you will be liable for any excess payment and we ask that you let bpha know first. The Lease – All shared ownership properties are leasehold. The lease issued is a ‘self-repairing’ lease, this means that as the shared owners you are responsible for the general upkeep and maintenance of the property. If you purchase the rest of the property in the future it may be that you obtain the freehold. However, you should check at the time of reservation and/or via your solicitor. Buildings Insurance – bpha insures most of its shared ownership homes, the charge for this is included in your service charge. The buildings insurance cover is arranged by bpha and whilst bpha still have an interest in the property the cover will continue until you own your home outright. Once this is the case it will be your responsibility to obtain your own buildings insurance policy. You are required to obtain your own contents insurance policy. Service charges – All our homes will have a monthly service charge which you will need to pay. You will receive a breakdown of all elements of the service charge for your home upon reservation. We review

the service charge each year and will notify you of any changes.

Service charges cover many things such as cutting communal grass, upkeep of communal areas such as hallways in apartment blocks and annual lift or fire inspections. The monthly rent – You will pay a monthly rent to bpha. The higher your share of the property, the lower this rent will be. The rent is reviewed annually and you will be notified in writing of any change. The rent review is detailed in your lease so you are aware of how this will be worked out. Your property’s value - All our new homes are valued independently by a valuer who is a member of the Royal Institute of Chartered Surveyors (RICs). We review the values at least once every three months. Once you have placed a reservation you have three months to exchange contracts at the price stated. Repairs – You are responsible for the general upkeep of your home whilst you own it. Things such as annual boiler servicing and checking of smoke alarms are your responsibility. Making improvements –We hope you enjoy your new home and putting your own stamp on it. As a rule, minor alterations such as putting up shelves or decorating do not require permission but you need to ask us if you would like to make major changes such as knocking down an internal wall or adding a conservatory. The defect period does not cover the provision of additional or extended features. You will need to arrange and pay for repairs and maintenance to these yourself.

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