Mortgage Repayments – You may need to borrow all or part of the cost of your share from a building society or bank. The building society or bank will arrange this and calculate the monthly repayments accordingly.
What are the running costs?
Rent – The monthly rent for the share you do not own will be a proportion of the total rent calculated by Rosa Homes. For example, if you own a 50% share, you pay a small % on the equity you do not yet own. The rent will usually be reviewed every year.
Repairs, Insurance & Service Charges – The lease will determine who is responsible for the provision of repairs, insurance and services. Charges will be dependent upon the extent of services provided.
Council Tax – You will have to pay the Council Tax to the Local Authority. Heating, Lighting Bills & Water Rates – You will be responsible for your own bills.
Fittings and Furniture – You will be responsible for supplying your own fittings and furniture and for the cost of contents insurance for the contents of your home.
Service Charges – There will be a small service charge payable. This will include Buildings Insurance on your property.
How do I buy further shares in my home?
Contact Rosa Homes and they will arrange for your home to be revalued by an independent valuer instructed by us. You will be responsible for this fee.
You will be given three months from the date of the valuation to buy a further share at the new price. Additional shares are usually available in tranches of 25%, some schemes allow you to staircase to outright ownership others are restricted.
Can I make improvements or alterations to my home?
If you wish to improve your home or make any additions or structural alterations to it, you must request the permission of the Housing Association in writing. This is obtained from the address on the back of this guide. If your proposals are deemed reasonable, your request will be upheld.
What if I fall behind with my mortgage repayments?
The mortgage contract is between you and your Lender. If you begin to have financial problems, which mean you cannot pay your mortgage, you must let them know as soon as possible. If you do fall behind with your payments, and cannot agree a solution with your Lender, there is a risk that they will take possession of your home and sell it. You would be entitled to your share of the money received after all your debts had been paid.
What if I fall behind on my rent or service charges?
Under the lease, you will be obliged to pay the rent. Again, if you find that you have financial problems, don’t just let your rent arrears build up – get in touch with the Housing Assocation to see if they can advise you. If you are in breach of the conditions of your lease you may be at risk of losing your property.
What if I want to sell?
You may sell at any time, but you must inform Rosa Homes in writing that you want to move. You can only sell the share you own. You will benefit from any increase in the value of the property according to the share you own. Rosa Homes also charges an administration fee, which is due on completion.