Last updated - 1 November 2017
At Genesis we offer the option to buy your home outright or buy in shares. We do have limited funds available for this scheme and offer the funding on a first-come, first-served basis to qualifying residents and tenants for as long as we have discount money available.
You can either buy your home outright and if you can’t afford to do this, you can part buy shares from 25% and pay a discounted market rent on the remaining share. The discounted market rent will be calculated on the total value of your home.
Whether you buy your home outright or a share you will also take responsibility for other charges, such as service charge and annual ground rent, as well as the upkeep of the home, so it is important to understand your total monthly outgoings when considering this as an option.
Genesis can help you calculate this so you can explore if this is the right option for you.
Am I eligible?
You can only apply for Social HomeBuy if you are an assured or secure tenant. If you became a tenant after 18th January 2005 you must have been a tenant for at least five years.
You must live in a home that is suitable for sale, for example, we cannot offer you Social HomeBuy if you live in shared accommodation or homes specifically for the elderly.
When you apply we will check whether your home is suitable as part of the eligibility assessment.
We will also take into account your track record with Genesis and will not be able to process applications from individuals who:
- Have breached your tenancy agreement in the last two years
- Are subject to a possession order (as a result of rent arrears or anti-social behaviour)
- Have been in rent arrears during the last six months, or if your rent account is not clear
- Own another property and/or have a mortgage on another property
What discount could I receive?
The maximum discount available in our operating area ranges from £11,000 up to £16,000. If you buy a share in your property, the discount will be calculated at the same percentage as the share you are buying. For example, if the full discount is £16,000, you can expect to receive the following discounts if you buy a share:
- 25% - £4,000
- 50% - £8,000
- 75% - £12,000
Conditions to buying
There are some additional conditions to buying that should be considered, these are:
Firstly, you are not allowed to sublet the property within the first five years of ownership.
Secondly, if you choose to sell your home within the initial five years of the original purchase; the discount you receive will be repayable. The discount is repayable if the property is sold or the share assigned within five years from the date of initial purchase.
The amount due to be repaid is calculated as a percentage of the resale value equivalent to the percentage of the discount, when compared to the purchase price and reduced by a fifth each year as follows:
- Sale within one year, repay an amount equal to the percentage that the discount bore to the purchase price
- Sale within two years, repay 80% of the amount calculated as above
- Sale within year three, repay 60% of the amount calculated as above
- Sale within year four, repay 40% as calculated above
- Sale within year five, repay 20% of the amount calculated above
- No repayment required after year five
If you would like to find out more or see if you are eligible for this or any of the other ways to buy, contact your neighbourhood management team to discuss your options.